At the end of each year, many Americans vow to save more money and spend less as a New Year’s resolution. However, achieving this goal often requires a commitment to learn and practice smarter money habits and lots of discipline, which, of course, is easier said than done. Saving more, however, may be even more challenging for the majority of older Americans, who are less likely to make that a priority than for those who are middle-aged or just graduating from college.
A newly released survey conducted in October by Harris Poll on behalf of CIT revealed that Generation X and Millennials are at least twice as likely as Baby Boomers to prioritize saving in 2018. According to the study, 67% of Millennials and 54% of Gen Xers plan to include savings as a goal next year compared to just 27% of Boomers. The majority of all generations, however, say they will prioritize savings for emergencies: 63% of Gen Xers, 61% of Millennials, and 51% of Boomers. (The survey defined Millennials as those between the ages 18 and 36, while Gen Xers are considered 37 to 51 years old, and Boomers are 52-plus.)
“Gen Xers are in the prime earning stage of life and understand the importance of saving for both short- and long-term expenses,” said Ravi Kumar, head of Internet Banking at CIT Bank, in a statement. “High Yield Savings Accounts can be a smart choice to allow your savings to grow, while still having access to funds for short-term goals or emergencies. CDs are a good solution for longer-term savings goals.”
Gen Xers and Millennials are also more likely to take advantage of money-saving strategies and innovative products like software-based apps. Thirty-nine percent of Millennials and 35% of Gen Xers agreed that new bank programs make it easier to save compared to only 21% of Boomers. Meanwhile, 41% of Millennials and 21% of Gen Xers consider lower interest rates on loans as a good tool to save versus 16% of Boomers.