Millennials Save Plenty But Still Let Parents Pay
The majority of Millennials are putting away money for emergencies as well as retirement — but nearly half of them still let mom and dad pay for them occasionally after striking out on their own, according to a recent survey by Fidelity. Millennials are also very wary of investing, the survey found.
More Millennials are saving: 85% say they have something put away, according to the survey conducted from July 27 to August 2.
In 2014, that figure was only 77%, according to Fidelity. And the group is also setting aside more for emergencies than older generations. Fifty-nine percent have saved on average $9,100 for unexpected expenses, while members of Generation X have $8,700 and Baby Boomers have just $7,100, according to the survey, which included 615 adults between 25 and 70 years old, of which 305 were born after 1980, 155 were Generation X (born between 1965 and 1979) and 155 were Baby Boomers (born before 1964).
Nonetheless, 47% of Millennials say they’ve let their parents pay for things like cell phone plans, cable and utilities, according to the survey. And according to Fidelity, there’s been an uptick – to 21% – in the number of Millennials living with their parents.
Financial advisors may have an opportunity with the group. Many Millennials lack proper financial planning to really put their savings to use, Fidelity claims. Among those who have an emergency fund, 86% have at least some of that money in a regular savings account, and only 62% of Millennials have an investment account, the survey found. In addition, most view themselves as spenders (44%) or savers (46%) rather than investors (9%), according to the survey.