Millennials are often called out for financial missteps like carrying high debts, living without health insurance, and failing to establish credit. But they may be leading their peers in one key area of money management: saving.
A new survey from Bankrate.com found that millennials—in this case defined as adults between the ages of 18 and 29—are saving more than any other age group. The report found that 62% are saving more than 5% of their income—a 48% jump from last year, when 42% of millennials reported similar savings rates to Bankrate. Their savings rate also outpaces that of adults over age 30: About half of the older demographic say they’re saving more than 5% of their earnings.
Millennials are starting early, but they’re not necessarily starting big. Just 29% of young adults report that they save more than 10% of their income. That figure places them slightly behind people between the ages of 30 and 49, 32% of whom save more than 10% of their income.
Millennials, many of whom came of age during the financial crisis, may be putting away more because they’ve adopted a cautious outlook toward finances, said Greg McBride, Bankrate’s chief financial analyst.
