Millennials Saving More Money Than Most, Study Finds
PHILADELPHIA (CBS) -- Nearly a quarter of all working Americans save nothing from their paychecks. But some of us are doing well fattening up the bank account.
More than 60-percent of millennials, those between ages 20 and 35 save more than 5-percent of their income, according to a new study. Greg McBride, Chief Financial Analyst of Bankrate.com, says the young workers learned a key lesson.
For many millennials, they had a front row seat during the financial crisis that came during their financially formative years," he says, "and even if they weren't directly impacted they did see the effects it had on their parents or older siblings, so a lot of these more disciplined financial habits have been ingrained in them as a result."
The company's new survey also shows that lower-income Americans are banking cash too.
"A lot of people mistakenly think that saving is a function of high income, but frankly that's a myth," McBride says. "We actually found that more Americans with incomes between 30 and 50-thousand dollars a year were saving more than 10-percent of their incomes than those making between 50 and 75 thousand dollar a year.
McBride says savings are not tied to income -- it has much more to do with discipline.
