Author Topic: Over half of millenials have less than $1000 in savings  (Read 8338 times)


v8rx7guy

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Re: Over half of millenials have less than $1000 in savings
« Reply #1 on: December 12, 2015, 10:07:01 PM »
I wonder what is considered "in savings"?  Was the questionnaire referring to actual cash reserves in a checking account?   Or was it asking all savings including 401K, IRA's, etc.?

LeRainDrop

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Re: Over half of millenials have less than $1000 in savings
« Reply #2 on: December 12, 2015, 10:26:36 PM »
Given that they polled 18 year-olds all the way up to 34 year-olds as "millenials," I find the results especially disheartening.  Not surprised for the younger end of the spectrum, but the older crowd should have helped with better savings.

JZinCO

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Re: Over half of millenials have less than $1000 in savings
« Reply #3 on: December 12, 2015, 10:28:10 PM »
Given that they polled 18 year-olds all the way up to 34 year-olds as "millenials," I find the results especially disheartening.  Not surprised for the younger end of the spectrum, but the older crowd should have helped with better savings.
When disaggregating by age, I too expected a larger disparity than was reported...


I wonder what is considered "in savings"?  Was the questionnaire referring to actual cash reserves in a checking account?   Or was it asking all savings including 401K, IRA's, etc.?
It was vague. "How much money do you currently have saved up? (including cash and bank accounts)".
I suppose there may be folks out there that maybe keep most cash-equivalent savings in CDs or money markets but not cash or checking/savings, or folks that just invest all but $1000 to keep on hand.

But read in to the larger context (40% of millenials do not want to invest in anything with downside risk according to polls by Goldman Sachs and Bankrate), I think it points to a more pessimistic picture.

v8rx7guy

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Re: Over half of millenials have less than $1000 in savings
« Reply #4 on: December 12, 2015, 10:34:51 PM »
I found the details of the poll right before the comments:

Methodology: Conducted by Google Consumer Surveys, November 24, 2015 - November 26, 2015 and based on 2556 online responses. Sample: General Population filtered to: 18-24 year-olds, 25-34 year-olds. The survey posed the question, “How much money do you currently have saved up? (including cash and bank accounts)” and provided the following as possible answers: Less than $1000, $1,000-$5,000, $5,000-$10,000, $10,000-$20,000, more than $20,000.

So they're asking what you have saved in cash and bank accounts.  I think if this is the case, the poll really doesn't show the "real" story.  I think most people around here would say it's not even smart to have more than 3-6 months or so in actual cash in your bank accounts; anything beyond that should be invested. I bet if it was a two-tier poll asking bank accounts as well as retirement savings I would HOPE it paints a better picture for those 25 years old+...

LeRainDrop

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Re: Over half of millenials have less than $1000 in savings
« Reply #5 on: December 12, 2015, 10:47:14 PM »
I found the details of the poll right before the comments:

Methodology: Conducted by Google Consumer Surveys, November 24, 2015 - November 26, 2015 and based on 2556 online responses. Sample: General Population filtered to: 18-24 year-olds, 25-34 year-olds. The survey posed the question, “How much money do you currently have saved up? (including cash and bank accounts)” and provided the following as possible answers: Less than $1000, $1,000-$5,000, $5,000-$10,000, $10,000-$20,000, more than $20,000.

So they're asking what you have saved in cash and bank accounts.  I think if this is the case, the poll really doesn't show the "real" story.  I think most people around here would say it's not even smart to have more than 3-6 months or so in actual cash in your bank accounts; anything beyond that should be invested. I bet if it was a two-tier poll asking bank accounts as well as retirement savings I would HOPE it paints a better picture for those 25 years old+...

Ah, so the devil's in the methodological details!  The results make more sense when they're talking cash and bank accounts only.

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Re: Over half of millenials have less than $1000 in savings
« Reply #6 on: December 12, 2015, 11:48:59 PM »
I found the details of the poll right before the comments:

Methodology: Conducted by Google Consumer Surveys, November 24, 2015 - November 26, 2015 and based on 2556 online responses. Sample: General Population filtered to: 18-24 year-olds, 25-34 year-olds. The survey posed the question, “How much money do you currently have saved up? (including cash and bank accounts)” and provided the following as possible answers: Less than $1000, $1,000-$5,000, $5,000-$10,000, $10,000-$20,000, more than $20,000.

So they're asking what you have saved in cash and bank accounts.  I think if this is the case, the poll really doesn't show the "real" story.  I think most people around here would say it's not even smart to have more than 3-6 months or so in actual cash in your bank accounts; anything beyond that should be invested. I bet if it was a two-tier poll asking bank accounts as well as retirement savings I would HOPE it paints a better picture for those 25 years old+...

Ah, so the devil's in the methodological details!  The results make more sense when they're talking cash and bank accounts only.

I mean, when I read that, I'm still going to answer with all of my accounts added together. Its says "including" not "in". Though I'm really confused where the distinction is between 'cash' and 'bank accounts'. Because my 'cash' is sitting in FDIC insured 'bank accounts'. My investments are in investment accounts...

JZinCO

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Re: Over half of millenials have less than $1000 in savings
« Reply #7 on: December 13, 2015, 12:49:03 AM »
Another figure.
$10,400 was the median net worth of millenials in 2013 ( their upper cutoff was 35 or 37 today).
http://blogs.wsj.com/economics/2014/09/04/it-only-takes-10400-to-be-richer-than-most-millennials/

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Re: Over half of millenials have less than $1000 in savings
« Reply #8 on: December 13, 2015, 12:57:19 AM »
I found the details of the poll right before the comments:

Methodology: Conducted by Google Consumer Surveys, November 24, 2015 - November 26, 2015 and based on 2556 online responses. Sample: General Population filtered to: 18-24 year-olds, 25-34 year-olds. The survey posed the question, “How much money do you currently have saved up? (including cash and bank accounts)” and provided the following as possible answers: Less than $1000, $1,000-$5,000, $5,000-$10,000, $10,000-$20,000, more than $20,000.

So they're asking what you have saved in cash and bank accounts.  I think if this is the case, the poll really doesn't show the "real" story.  I think most people around here would say it's not even smart to have more than 3-6 months or so in actual cash in your bank accounts; anything beyond that should be invested. I bet if it was a two-tier poll asking bank accounts as well as retirement savings I would HOPE it paints a better picture for those 25 years old+...

Ah, so the devil's in the methodological details!  The results make more sense when they're talking cash and bank accounts only.

I mean, when I read that, I'm still going to answer with all of my accounts added together. Its says "including" not "in". Though I'm really confused where the distinction is between 'cash' and 'bank accounts'. Because my 'cash' is sitting in FDIC insured 'bank accounts'. My investments are in investment accounts...

With total numbers of less than $1000, I'm pretty sure "cash" means the green stuff that gets carried around in wallets.

david51

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Re: Over half of millenials have less than $1000 in savings
« Reply #9 on: December 13, 2015, 01:05:47 AM »
I found the details of the poll right before the comments:

Methodology: Conducted by Google Consumer Surveys, November 24, 2015 - November 26, 2015 and based on 2556 online responses. Sample: General Population filtered to: 18-24 year-olds, 25-34 year-olds. The survey posed the question, “How much money do you currently have saved up? (including cash and bank accounts)” and provided the following as possible answers: Less than $1000, $1,000-$5,000, $5,000-$10,000, $10,000-$20,000, more than $20,000.

So they're asking what you have saved in cash and bank accounts.  I think if this is the case, the poll really doesn't show the "real" story.  I think most people around here would say it's not even smart to have more than 3-6 months or so in actual cash in your bank accounts; anything beyond that should be invested. I bet if it was a two-tier poll asking bank accounts as well as retirement savings I would HOPE it paints a better picture for those 25 years old+...

Ah, so the devil's in the methodological details!  The results make more sense when they're talking cash and bank accounts only.

I mean, when I read that, I'm still going to answer with all of my accounts added together. Its says "including" not "in". Though I'm really confused where the distinction is between 'cash' and 'bank accounts'. Because my 'cash' is sitting in FDIC insured 'bank accounts'. My investments are in investment accounts...

With total numbers of less than $1000, I'm pretty sure "cash" means the green stuff that gets carried around in wallets.
I'm pretty sure the "green stuff" in their wallets is something else.

arebelspy

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Re: Over half of millenials have less than $1000 in savings
« Reply #10 on: December 13, 2015, 02:31:42 AM »
Newsflash: Large segment of the population approximates the average population.
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Re: Over half of millenials have less than $1000 in savings
« Reply #11 on: December 13, 2015, 04:39:01 PM »
Newsflash: Large segment of the population approximates the average population.

It's worse than that...did you know 50% of millenials have a below average net worth?

human

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Re: Over half of millenials have less than $1000 in savings
« Reply #12 on: December 13, 2015, 04:53:18 PM »
Doubt generation x (which I'm at the tail end of) was any better at the same age range. Or any other generation label during that age range. I'm 37 and only starting saving recently so I was no better. This really shouldn't be much of a surprise.
« Last Edit: December 13, 2015, 04:55:12 PM by human »

MgoSam

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Re: Over half of millenials have less than $1000 in savings
« Reply #13 on: December 13, 2015, 05:07:35 PM »
I'm a little less judgmental. Many people in my age group have student debt, plus they also graduated during the recession, so it may have taken them longer to get a job that is well-paying. Plus I imagine nearly every generation has the same problem at this stage. Unfortunately it makes things harder for them in the future, but that's life. All I can do is try to save as much as I can and recommend the same to those I know. When I retire early, perhaps that will be a good model for other people.

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Re: Over half of millenials have less than $1000 in savings
« Reply #14 on: December 13, 2015, 05:29:22 PM »
I thought the millennial generation was supposed to be the Ben Franklin generation...?

I'm sure $1,000 was a lot of money in Franklin's lifetime.

financialpurgatory

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Re: Over half of millenials have less than $1000 in savings
« Reply #15 on: December 13, 2015, 06:44:45 PM »
Methodology seems questionable at best by A- not account for student loans; B- asking for cash only and not total financial assets.


maizeman

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Re: Over half of millenials have less than $1000 in savings
« Reply #16 on: December 13, 2015, 07:06:21 PM »
snip

With total numbers of less than $1000, I'm pretty sure "cash" means the green stuff that gets carried around in wallets.
I'm pretty sure the "green stuff" in their wallets is something else.
Touché. Although they carry that in their wallets? I thought the cliche was an altoids container with a lisa frank unicorn sticker on it.

Also I think there is at least as good a case to be made for factoring that into people's net worth as counting the value of a car (I wouldn't suggest either). With a net worth of <$1,000 it'd probably constitute a measurable percentage of the total.

turketron

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Re: Over half of millenials have less than $1000 in savings
« Reply #17 on: December 13, 2015, 08:13:40 PM »
a little off topic- I forgot I had installed a Chrome extension that replaces "millenials" with "snake people," it made this article (and thread) a million times more entertaining to read...

https://chrome.google.com/webstore/detail/millennials-to-snake-peop/jhkibealmjkbkafogihpeidfcgnigmlf?hl=en-US

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Re: Over half of millenials have less than $1000 in savings
« Reply #18 on: December 13, 2015, 09:45:01 PM »
Newsflash: Large segment of the population approximates the average population.

It's worse than that...did you know 50% of millenials have a below average net worth?

And sadly, 50% of millennials have below average intelligence.

v8rx7guy

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Re: Over half of millenials have less than $1000 in savings
« Reply #19 on: December 13, 2015, 09:49:10 PM »
I am shocked that I am lumped into the same generation as those born in 1997... don't you at least have to remember the coming of the Y2K to be a millennial?  Sigh... I sound like an old man :(

Jouer

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Re: Over half of millenials have less than $1000 in savings
« Reply #20 on: December 14, 2015, 09:48:36 AM »
Further methodology bologny: having 25 year olds and 34 year olds in the same bucket in a financial survey is crazy.

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Re: Over half of millenials have less than $1000 in savings
« Reply #21 on: December 14, 2015, 10:43:38 AM »
Newsflash: Large segment of the population approximates the average population.

It's worse than that...did you know 50% of millenials have a below average net worth?

And sadly, 50% of millennials have below average intelligence.

You're both assuming millennial are representative of the entire population, and they may not be.  Possibly they ALL have above average net worth and intelligence (and then perhaps the Xers are all below the average...)
The stats here you've quoted is only if being compared to other millennials. :)

tarheeldan

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Re: Over half of millenials have less than $1000 in savings
« Reply #22 on: December 14, 2015, 10:48:48 AM »
a little off topic- I forgot I had installed a Chrome extension that replaces "snake people" with "snake people," it made this article (and thread) a million times more entertaining to read...

https://chrome.google.com/webstore/detail/snake people-to-snake-peop/jhkibealmjkbkafogihpeidfcgnigmlf?hl=en-US

Thank you. This is hilarious.

JZinCO

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Re: Over half of millenials have less than $1000 in savings
« Reply #23 on: December 14, 2015, 12:28:53 PM »
Further methodology bologny: having 25 year olds and 34 year olds in the same bucket in a financial survey is crazy.
If the survey wanted to find out information about millenials and surveyed 60-80 year olds, then the methods would be faulted.

The surveyors intended to determine the savings rate of millenials; the survey only polled individuals self-reporting an age of between 18 and 34.
I don't see anything wrong with the methods. A survey can be statistically defensible but not useful.

You might find that aggregating individuals into generations too broad to be actionable or allow for meaningful interpretation. I would agree; but that's not a slight against the survey because it aimed to generalize across all millennials and seemed to have do to so.
--
I'm assuming here you mean methods. There seems to be confusion about methodology vs methods.
« Last Edit: December 14, 2015, 12:32:33 PM by JZinCO »

Jouer

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Re: Over half of millenials have less than $1000 in savings
« Reply #24 on: December 14, 2015, 02:13:05 PM »
Yes, poor choice of words. (I also used bologny which isn't even a word. I was writing loosely.)

You are right; the issue I have is with the reporting. You knew what I meant. But thanks for being an asshole about it.

MOD NOTE: Please read forum rule #1.
« Last Edit: December 14, 2015, 02:48:18 PM by arebelspy »

JZinCO

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Re: Over half of millenials have less than $1000 in savings
« Reply #25 on: December 14, 2015, 02:57:42 PM »
Yes, poor choice of words. (I also used bologny which isn't even a word. I was writing loosely.)

You are right; the issue I have is with the reporting. You knew what I meant. But thanks for being an asshole about it.

MOD NOTE: Please read forum rule #1.
I thought I could assume what you meant, but I wasn't 100% positive. I work in research so speaking precisely is something I am asked of and ask of others. I apologize if it was taken as snark.

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Re: Over half of millenials have less than $1000 in savings
« Reply #26 on: December 14, 2015, 03:20:29 PM »
I am a millennial, and I have less than 1000 in the bank although I have over 2000 in my work pension plan - does that count? To be fair, I usually maintain a higher balance but I recently emptied my emergency fund to finally wipe out my debt, took a gamble but so far so good. So now that I have no debt, I'm probably better off than many of my peers.

kite

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Re: Over half of millenials have less than $1000 in savings
« Reply #27 on: December 14, 2015, 04:07:06 PM »
Following
« Last Edit: March 17, 2017, 04:48:15 PM by kite »

bloomability

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Re: Over half of millenials have less than $1000 in savings
« Reply #28 on: December 14, 2015, 04:45:44 PM »
I am shocked that I am lumped into the same generation as those born in 1997... don't you at least have to remember the coming of the Y2K to be a millennial?  Sigh... I sound like an old man :(

I'm beginning to believe that "millennial" is a term for anyone 18-34 not a birth year. It's seemed to have been 18-34 for several years now with people now being placed out of the generation.

I'm GenY which used to be late 70's - early 80's but now is considered late 80's - early 2000's? I'm over the buzzword "millennial."

bloomability

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Re: Over half of millenials have less than $1000 in savings
« Reply #29 on: December 14, 2015, 04:51:52 PM »
I would have liked for this study to have asked about debt load and total net worth as well. One part of the financial picture is not enough.

I like to see how I stack up with other millennials in ALL ASPECTS. I don't need to see that as I've met several people my age who think 'curmudgeon' is a made up word.

v8rx7guy

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Re: Over half of millenials have less than $1000 in savings
« Reply #30 on: December 14, 2015, 04:55:42 PM »
I would have liked for this study to have asked about debt load and total net worth as well. One part of the financial picture is not enough.

I like to see how I stack up with other millennials in ALL ASPECTS. I don't need to see that as I've met several people my age who think 'curmudgeon' is a made up word.

Net worth and debt load is how people think around here... not everyone thinks that way.  I think it's actually a pretty decent poll, to be able to say that 50% of millenials wouldn't have $1,000 to fall back on in an emergency without falling on a credit card is a scary statement.

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Re: Over half of millenials have less than $1000 in savings
« Reply #31 on: December 14, 2015, 05:03:18 PM »
to be able to say that 50% of millenials wouldn't have $1,000 to fall back on in an emergency without falling on a credit card is a scary statement.

You may be a bit out of touch from the average person.  :)

64% of Americans don't have the cash to deal with a $1,000 emergency.

That was in 2011 (so 2011 dollars), so giving the benefit of the doubt, it may have slightly improved, but Millenials are doing no worse, and perhaps better, than the population as a whole.

What a surprise:
Newsflash: Large segment of the population approximates the average population.

;)
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bloomability

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Re: Over half of millenials have less than $1000 in savings
« Reply #32 on: December 14, 2015, 05:14:06 PM »
I would have liked for this study to have asked about debt load and total net worth as well. One part of the financial picture is not enough.

I like to see how I stack up with other millennials in ALL ASPECTS. I don't need to see that as I've met several people my age who think 'curmudgeon' is a made up word.

Net worth and debt load is how people think around here... not everyone thinks that way.  I think it's actually a pretty decent poll, to be able to say that 50% of millenials wouldn't have $1,000 to fall back on in an emergency without falling on a credit card is a scary statement.

Yes, it is a decent poll. There are a lot of polls about student loan debt and buying a house, and even some with net worth. I just want a poll that combines everything. This study was presented very well so I wish it was expanded a little.


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Re: Over half of millenials have less than $1000 in savings
« Reply #33 on: December 14, 2015, 05:46:46 PM »
I am shocked that I am lumped into the same generation as those born in 1997... don't you at least have to remember the coming of the Y2K to be a millennial?  Sigh... I sound like an old man :(

I'm beginning to believe that "millennial" is a term for anyone 18-34 not a birth year. It's seemed to have been 18-34 for several years now with people now being placed out of the generation.

I'm GenY which used to be late 70's - early 80's but now is considered late 80's - early 2000's? I'm over the buzzword "millennial."

I've never seen GenY (or millenial) include the 70s. Always starting at the 80s. Though the last few years it has seemed to cut off at 1982.

However, as someone born in 1982, I have basically nothing in common with the far end of millenials.  Certainly not my savings.  I have a great paying job in the grand scheme, but certainly not amazing (well under $100k), but I have cash and bank accounts of $50k, plus investments and real estate equity.
« Last Edit: December 15, 2015, 06:48:15 AM by iowajes »

JZinCO

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Re: Over half of millenials have less than $1000 in savings
« Reply #34 on: December 14, 2015, 08:54:27 PM »
I would have liked for this study to have asked about debt load and total net worth as well. One part of the financial picture is not enough.

I like to see how I stack up with other millennials in ALL ASPECTS. I don't need to see that as I've met several people my age who think 'curmudgeon' is a made up word.

Net worth and debt load is how people think around here... not everyone thinks that way.  I think it's actually a pretty decent poll, to be able to say that 50% of millenials wouldn't have $1,000 to fall back on in an emergency without falling on a credit card is a scary statement.

Yes, it is a decent poll. There are a lot of polls about student loan debt and buying a house, and even some with net worth. I just want a poll that combines everything. This study was presented very well so I wish it was expanded a little.
I like the google webpage for the study. Now, if we could get Fidelity to open up their annual studies (which can be quite comprehensive) and put the data on a platform where we could disaggregate/aggregate data points at our pleasure, that would be fantastic.

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Re: Over half of millenials have less than $1000 in savings
« Reply #35 on: December 15, 2015, 08:17:03 AM »
I would have liked for this study to have asked about debt load and total net worth as well. One part of the financial picture is not enough.

I like to see how I stack up with other millennials in ALL ASPECTS. I don't need to see that as I've met several people my age who think 'curmudgeon' is a made up word.

Net worth and debt load is how people think around here... not everyone thinks that way.  I think it's actually a pretty decent poll, to be able to say that 50% of millenials wouldn't have $1,000 to fall back on in an emergency without falling on a credit card is a scary statement.

I wonder though - does the results come from urban residents or rural residents or an appropriate blend of the two?

I came to realize a long time ago that so much of what we define America to be comes from the media companies on the coasts and overlooks millions of people who live between the coasts and may live very different lives.

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Re: Over half of millenials have less than $1000 in savings
« Reply #36 on: December 15, 2015, 08:18:02 AM »
This survey really doesn't mean much to me. I'd prefer to know what their saving habits are. Even if you know someone has $10K, $20K or more in cash or cash equivalents, it says nothing about how that money got there. Are they saving it from earnings, or is it inheritance or other "economic outpatient care"? And it's already been pointed out earlier in the thread that keeping huge piles of cash uninvested isn't ideal anyway.