Millennials Lead the Pack in Sticking to Savings Resolutions
Nearly Half Have Stayed on Track in 2020
Shattering the stereotype that millennials don’t prioritize saving, nearly half of this group who made a New Year’s resolution to save more say they have stayed completely on track in 2020, according to CIT Bank’s recent survey, conducted by The Harris Poll.
The survey indicates that millennials are doing a far better job than other generations when it comes to sticking to their financial resolutions.1 By comparison, only a third of Gen Z, Gen X and Boomers say they have remained committed to their savings goal.
While over half of US consumers who made a resolution said that saving money is their top goal in 2020, Gen Z and Millennials lead the pack in prioritizing saving in the new year, 79% and 69% respectively, compared to 59% of Gen X and 41% of Boomers.
“We’re encouraged to see consumers sticking with their goals well into the new year,” said Ravi Kumar, head of direct banking at CIT. “Millennials and Gen Zers, in particular understand the benefits of creating a financial cushion and are taking the necessary steps to do so.”
Sticking to goals
So how are they doing it? Setting spending limits on debit or credit cards is the most common strategy that US consumers are using to stick to their financial resolutions (48%), followed by reading more financial tips (28%), downloading a budgeting app (24%) and enlisting a buddy for accountability (16%).
“Card controls will prevent you from blowing your budget and can be a powerful tool to remain on course in keeping a financial resolution,” continued Kumar.
Despite efforts to remain focused, keeping a New Year’s resolution isn’t always a walk in the park. Compared with keeping a financial resolution for a year, nearly half (48%) of all US consumers say bringing their lunch to work every day would be easier. A third believe losing 10 pounds is less challenging and another 8% each say running a marathon or obtaining an advanced degree is easier.
Strategies to save
For many, automating deposits is key to keeping resolutions and achieving financial goals. “Consider signing up for a financial product that takes the work out of saving more,” said Kumar.