Nearly a quarter of millennials don't have savings accounts or savings for retirement, according to a study by Northwestern Mutual. The study found about 27 percent of millennials have $5,000 or less saved, and 16 percent have no savings at all.
Experts say it's a combination of high amounts of student loan debt and not making as much money as they thought they would and millennials agree, but there may be a little bit more to it.
"I don't, because I have college loans to pay off and I'm really nervous about that," said Joshua Bauer of Albany.
Others are a little more prepared.
"Yeah, since I've had a bank account ... I'm saving roughly between 5-10 percent every two weeks," said Brandon Johnson of Buffalo.
And as for retirement ...
"I don't really have a lot of knowledge on what I need for when I retire," Bauer said.
That's not uncommon. Natasha Adams, a professor at Siena College's School of Business, says the Northwestern Mutual study results echo what she's seen firsthand.
"People generally don't think about savings early on. They have that catch-up period, but the study did not surprise me at all," Adams said.
She says people expect the generations after them to save better, but it's often not realistic.
"If you are saving, it may be for something small or a 'what if,' but a lot of times, the population between that 18-22 [demographic], it's just not a habit," Adams said.
And that's because millennials have other habits, says College of St. Rose professor and millennial expert Karen McGrath, but the issue is multi-faceted.
"They have no money. Right? In a nutshell, they just don't have enough money," McGrath said.
McGrath says she's found in her research that it's a combination of mounting student loan debt and interest piling up, coupled with the fact that many millennials are driven by having a job they care about and enjoy more than a paycheck, and that millennials are also driven by experiences.
"I think as long as they can make ends meet, they're willing to take the lesser salary, but travel is really important to millennials, and 'if I'm going to have debt anyways, I'm willing to accrue more debt,' " McGrath said.
McGrath says instant gratification is huge for millennials.
" 'I want to have that selfie on the beach, so I can say, 'Look at me,' " and now most of the other people are going, 'I wish I could afford it,' but they too want to do that," McGrath said.
Experts say it's a multi-layered issue that encompasses the attitudes of millennials along with some of the things they're struggling with.
The study found:
- Thirty percent are within three paychecks of needing to borrow money
- The study found Generation Xers are carrying around about $36,000 in student loans
- Millennials have about $28,000 in student loan debt
- Twenty-five percent said their biggest bill to foot is a credit card
So is some of the struggle to save because many millennials are waiting to get married and don't have two incomes? McGrath says it's easier when you're splitting a mortgage or rent and bills with some else to pay those loans and can put a little extra aside.
If you're a millennial having trouble saving, or don't know where to start, Adams says a great first step is to find a financial advisor who can help you plan even if you're not making a lot of money. Both Adams and McGrath also mentioned apps you can link to your bank account which will round up your spending, and then put that extra change into a savings account for you without even having to think about it.