Millennials are showing exactly why their reputation as poor money managers is largely bogus and outdated, according to a new report from Bank of America (BAC). One key piece of evidence: the portion of millennials who have saved $100,000 or more has soared, doubling to 16% since 2015. And now 47% of millennials have saved $15,000 or more. That's well up from just 33% in 2015.
Just 5% of millennials ages 23 to 27 have reached the $100,000 level.
Overall — and contrary to their reputation — millennials, who are ages 23 to 37, are nearly as good as older generations at some money management skills, such as saving and budgeting. And they are as good as or better than other generations at certain additional key skills, the reportsays.
Notably, millennials outdo older generations when it comes to setting a savings goal, with 57% of millennials having set such a goal vs. just 42% of baby boomers and of Gen Xers.
Millennials lag slightly when it comes to actually saving, with 63% of them socking away money for the future vs. 75% of boomers and 64% of Gen Xers. And 57% of millennials budget vs. 57% of boomers and 54% of Gen Xers.
Yet millennials outdo their elders in certain important financial categories by applying the pluck that comes with relative youth. For instance, millennials are bolder about asking for a raise, with 46% having done that in the past two years vs. just 36% of Gen Xers and 39% of boomers.
Better yet, a whopping 80% of millennials who asked for a raise got one.
Still, millennials show hard-nosed realism about their financial circumstances. Sixty-four percent say their generation is not good at managing money. And 73% say their peer group overspends on unnecessary indulgences. Also, 75% say their generation overspends in comparison to other generations.
In addition, 73% worry about their financial situation. That's nearly identical to the 74% who fretted about finances in 2014.
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