Give Them Some Credit: #Millennials Smarter About Credit & Saving Than Many Think

Community financial institutions (FIs) should look beyond the widely held notions about Millennials’ spending and saving habits. As a demographic looking to build credit and save for their future, Millennials are the perfect market for FIs offering credit and savings vehicles. It seems overlooking this large group of future “earners” could equal a substantial missed opportunity.

Millennials and the financially savvy aren’t often considered one and the same. However, new findings indicate Millennials may be much more aware of and on top of their finances than they’re given credit for.

A recent Credit Karma study shows Millennials are responsibly taking out credit cards to build their credit, working hard to increase their savings and preparing for retirement. This is despite the fact that they’re burdened with higher student debt load than any prior generation.

“Millennials are following in the footsteps of generations before them: saving for the future is top-of-mind,  loyalty with employers who offer fair pay is a priority and hitting life’s traditional milestones is important to them,” Bethy Hardeman, Credit Karma chief consumer advocate, said in a recent press release.

More than half of Millennials surveyed (52 percent) are currently saving for retirement. Interestingly, 89 percent of those began their retirement savings at age 28 or younger (30 percent were 21 or younger).

The majority (62 percent) of survey participants said they have at least one open credit card. What’s more, Credit Karma reports 30 percent of their Millennial members currently boast a credit score of 700 or higher. For nearly half (48 percent) of those without a credit card, not wanting to take on debt is their top reason for not opening a credit card.