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How Saving in 2018 Differs across Generations


With the holidays behind us and 2018 starting to take shape, New Year’s resolutions are a hot topic of conversation. While many people resolve to eat healthier or be more active, others are choosing to improve their financial health by increasing savings and limited spending.

Rining in the New Year

According to a recent CIT Bank and Harris Poll survey,1 millennials and Generation X were at least twice as likely as baby boomers to include savings goals as part of their New Year’s resolutions.

The survey revealed that 67 percent of millennials, 54 percent of Gen Xers, and 27 percent of boomers who planned to make New Year’s resolutions prioritized savings as a 2018 goal. Though a majority of adults in the U.S. say they currently have savings goals (87 percent) and 81 percent contribute a portion of their monthly household income to savings, not everyone is putting money aside. Those who are boomers (23 percent) or women (24 percent) are the most likely to say they don’t put any money aside for savings.

Among those who do contribute monthly to their savings, nearly 2 in 3 consider the money “general savings,” with 57 percent saying the money is for emergencies, 48 percent saying retirement, and 39 percent saying vacations. Gen Xers lead the pack in saving for retirement, at 62 percent, compared with 48 percent of boomers and 38 percent of millennials. Boomers are the least likely to focus on saving for emergencies and housing (51 percent and 5 percent, respectively) when compared with millennials and Gen Xers.

In addition to planning to save more in the New Year, millennials and Gen Xers also are more likely than boomers to think that certain tools or strategies could be implemented to help them save. One example is new bank promotions, which 39 percent of millennials, 35 percent of Gen Xers, and 21 percent of boomers think could make it easier to save.

Rining in the New Year

These results seem to largely indicate that younger generations are the most committed to improving their savings and are interested in trying new tools and strategies that could help them save more. As the New Year gets underway and some resolutions are inevitably broken, people from every generation should try to remain steadfast in their commitment to savings in 2018.

Online calculators like those available from CIT Bank can serve as a tool to aid in financial planning throughout the year. These types of resources can help with goals ranging from general savings to preparing for retirement, debt management, and more. Once you’ve figured out how much you can afford to put aside, you may want to consider opening a new high-yield savings account or CD to contribute to regularly. You can even choose to set up a monthly automatic deposit to ensure you won’t forget or overspend. Once saving is part of your financial routine, it’ll be easy to keep the momentum going!


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