This generation will save the most money in 2023 and it may surprise you
It would be no exaggeration to say that 2023 was not an easy year to save money. Although inflation is not as rampant in 2023 as it was a year ago, the cost of living is still rising. And many Americans have struggled financially due to rising food, utility and housing costs.
Still, the average American adult saved a pretty impressive $6,138.06 last year, according to New York Life’s latest Wealth Watch survey. But of all age groups, millennials save the most.
lead the pack
Millennials saved an average of $9,299.45 in 2023. In comparison, the savings of other generations are as follows:
- Gen Z: $6,440.67
- Generation X: $5,132.20
- Baby Boomers: $4,059.72
It’s somewhat surprising that millennials are leading the way when it comes to saving. That’s because many Gen Xers are advancing their careers and are in positions to potentially earn more money. Additionally, because Millennials are more likely to have younger children, they may inherently face higher child care costs than Gen Xers.
That said, it’s not surprising that millennials’ savings surpass those of younger, less work-experienced Gen Zers. The typical Gen Zer may earn significantly lower wages than the typical Millennial.
It’s no surprise that millennials are outpacing baby boomers when it comes to savings. Many boomers have already reached retirement age and have partially or completely finished working. Additionally, some baby boomers may be satisfied with the savings they have built and may be in a position to use their money to help younger family members.
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How to increase your savings this year
No matter what generation you belong to, you’ll want to significantly increase your savings in 2024. Here are some steps you can take to achieve these goals:
- Pay yourself first. Whenever your paycheck arrives, transfer money from your checking account and put it straight into savings. That way you won’t be tempted to spend money. You can also set this process on autopilot.
- Don’t spend money on interest. Every dollar you pay the credit card company is a dollar you can’t put into your own bank account. Track your credit card spending carefully throughout the month so you can pay off your balance in full when it’s due.
- Participate in the gig economy. There are many opportunities to pick up a side hustle and increase your income. This is an easy way to save more money.
Even if I can’t save it any If you make money in 2023, you have most of 2024 ahead of you. A few small changes can increase your savings balance by the end of the year. That way, when next year’s data comes out, you can look at the average savings in 2024 and say, ‘Well, what do you know? I did better.’
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