What Our Kids Can Teach us About Saving Money
Would you guess that Millennials are effectively saving for retirement? Well, they are.
Please refer to our transcription below if it is easier and/or more convenient for you:
On the long hike to retirement, taking the first step is important.
Three separate generations: baby boomers, born between 1946 and 1964, Gen-X’ers, born between 1965 and 1980, and millennials, born between 1981 and 2000, tend to navigate that winding trail differently.
Let’s take a look:
- Baby boomers started saving for retirement at 35.
- Millennials, possibly as a reaction to the 2007 economic crisis and concerns about social security have started saving a full 13 years earlier, when they are just 22 years old.
- Gen-X, splits the difference and started saving at 27.
Even though they are the farthest away from retirement, millennials are saving an average of 8% of their pay compared to Gen-X’s 7%. Baby boomers consistently save about 10% of their paychecks. The millennial generation appears to have started off on the right foot on the road to retirement.
The lesson for my children is clear, save early, save more.