The Economic Perspective: “Are Millennials Saving?”

Mary:  This is Mary Walden with economist MW, welcoming you to the economic perspective.  Today’s program asks if Millennials saving. Mike, the Millennial generation, born between 1980 and 2000, are now the largest in the country are rapidly becoming the most important in the economy.  Companies rely on their spending to grow their businesses.   But are Millennials also providing the savings that are important to the health of the economy?

 

Mike: Summary Answer

  • Actually – and probably surprising to many – they are
  • Some would think they wouldn’t because Millennials are the first generation to experience significant college debt
  • But data from the Federal Reserve show the Millennials have a higher savings rate than the previous generation – Gen X – at the same age
  • However, they still have less wealth accumulated than Gen X, due primarily to entering the workforce during the Great Recession and their slow start in buying homes
  • Still, the Great Recession appears to have taught caution and safety to the Millennials, and they are acting on that will great saving
  • I’m MW

 

Mary:  And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.