Why You Should Start Saving Money at an Even Earlier Age

When it comes to savings among the millennial generation, the news is surprisingly good. Pennygem’s Justin Kircher explains.

Transcript

00:00when it comes to savings among the millennial generation the news is

00:07surprisingly good a new survey from Bank of America shows that almost a

00:11quarter of participants ages 24 through 41 have $100,000 or more in savings the

00:17financial institution says this is an increase from its last study when 16% of

00:22Millennials had that much stashed away B of A clarified that this does not mean

00:26these individuals have 100k in cash but rather it includes retirement accounts

00:31like a 401k or an IRA the US Census Bureau puts the average salary for a

00:36millennial around $47,000 per year using that as an example CNBC says that if a

00:42person was able to save 5% of that salary for a 20-year period with a 7% return

00:47that would put the total savings around $96,000 Bank of America's study did show

00:52that Millennials are starting to put away money at an earlier age than their

00:56parents starting at an average age of 24 compared to 33 for the baby boomer

01:01generation as for building a nest egg better money habits suggest setting

01:06savings goals for yourself whether it's having enough money for an emergency fund

01:10or long-term planning with an eye on retirement setting up an automatic draft

01:14into a savings account or splitting the direct deposit for your paycheck are other

01:18ways to boost the bucks in your savings