Millennials cut spending to pad their savings

Personal Finance

Americans, in general, are putting a greater emphasis on savings. For millennials, in particular, it’s a way of life.

The majority, or 60 percent, of 18-to-36-year-olds who have reeled in their spending, did so in order to save more money, according to a report released Tuesday.

That’s in contrast to previous years, when stagnant income was the main reason most Americans felt the need to save. (Over this time frame, the median household notched solid economic gains.)

Other top reasons cited to rein it in included worries about the economy, job security as well as debt, according to the survey. Bankrate polled more than 1,000 adults in October.

In addition, millennials were more than twice as likely to set a spending cap in order to save more, compared with older generations, Bankrate said.

“Millennials have an inclination toward saving that we have not seen from our predecessors,” said Greg McBride, Bankrate’s chief financial analyst.

In part because of the financial distress so many households faced during the Great Recession that this generation witnessed early on, millennials also have a greater aversion to debt and less focus on consumption, McBride said. “Those all bode very well for their financial future.”

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