A new study suggests millennials are saving money earlier than their parents.
The Transamerica Insurance study indicates 70 percent of those in their 20s and 20s are already saving for retirement – well ahead of when their baby boomer parents started saving. Baby boomers started saving around the age of 35, according to the study. Today, 22-year-olds are starting retirement accounts.
Still, it’s not easy. Jacob Rodriguez, a 23-year-old in the financial planning business, said there are always places to spend your money: food, going out on the weekends or going camping.
“But the sooner you start, the sooner you can finish,” he said.
Rodriguez said super savers are the people who know that putting away even small amounts of money grows slowly but surely.
Still, he believes, for those who aren’t saving, they are drowning in debt, from car payments to college loans.
“The ones who are dogged by debt are doing more of the impulse spending, trying to keep up with the Jones-type thing,” he said. “’This is what I deserve; I want this. I’m going to buy it.’ There’s not so much clarity and education around what they’re trying to accomplish with their money.”
Rodriguez’s words ring true. According to Wells Fargo, many millennials are living paycheck to paycheck, drowning in student loans and consumer debt.