While both Millennials and Generation Z place a high value on experiences such as travel and entertainment, they also exhibit distinctive money habits. In particular, millennials often exhibit superior saving habits, compared to their younger Gen Z counterparts.
Data from New York Life’s Wealth Watch 2024 reveals a clear generational divide in saving patterns. In 2023, millennials managed to save an average of $9,299.45, compared to Gen Z's average of $6,440.67. In their respective age ranges of 28 to 43 and 14 to 27, both generations grapple with inflated living costs and debt repayments, but most millennials still achieved nearly $10,000 in savings in 2023. Additionally, 64% of millennials demonstrated a penchant for stock market investments, with a preference for ETFs and retirement accounts.
On the other hand, as most Generation Z individuals are only just beginning to navigate adulthood and graduation, personal finance has been lower on their priority list. The 2023 Prosperity Index Study by Intuit highlights this perspective, with three out of four Gen Z respondents indicating their preference for better life quality over increased monetary savings. And rather than planning for long-term retirement, the immediate goal for most Gen Z-ers revolves around purchasing a new vehicle.
When pitted against other demographic cohorts, millennials emerge as the most avid savers, while Baby Boomers tend to save the least – almost predictably given their typical status of being retired or nearing retirement.
In a bid to bolster savings, both millennials and Gen Z could explore a range of strategies. From setting automated savings deposits and leveraging high-yield savings accounts to cultivating solid financial habits early, these measures can significantly boost savings growth despite the challenges of high living expenses and debt.