The importance of an emergency fund isn’t lost on the youngest members of the workforce. As Money reports, Millennials actually surpass Baby Boomers when it comes to cultivating (and maintaining) savings, at least in some respects.
Bankrate.com recently published a survey of 1003 U.S. adults conducted by Princeton Survey Research Associates International. The report found that 50 percent of respondents between the ages of 18 and 36 have enough cash in the bank to support themselves for at least three months in case of emergency. Forty-nine percent of people over the age of 56 could say the same. The younger generation was also more likely to have a savings account of any size—only 25 percent of Millennials reported not having one compared to 27 percent of Baby Boomers.
There was one important area where the older generation won out. Thirty-eight percent of Baby Boomers said their emergency fund was large enough to cover at least six months worth of expenses. Twenty-three percent of Millennials have savings accounts of the same size. This indicates that the Baby Boomers who do make it a point to save are more likely to reach the savings goal recommended by financial experts.
Though their savings may be smaller, the fact that Millennials are putting away any amount of money is good news. Practicing good financial habits at a young age is the first step towards a secure retirement. The results reflect what we already know about Millennials’ attitudes towards money matters: Because they came of age during the 2008 financial crisis, saving money and tackling debt are top priorities. Financially savvy young people looking to grow their savings cushion past the six-month mark can find some helpful savings tips here.