TD Canada Trust: Gen X/Millenials care more about savings than Boomers


mentalfloss
#1


Gen X and millennials fret over savings

It’s been a long time since the expression “a penny saved is a penny earned” was commonplace.

When it comes to money, consumers in their 20s worry they’re spending too much, not saving enough — and don’t have enough, to boot. Even so, two out of three also believe they’re doing a good job managing their cash.

Boomers born between 1946 and 1964 naturally think they’ve got it under control, while Gen Xers, those aged 32 to 48, are hardly in better shape than their younger “millennial” cohorts.

These attitudes toward money, by generation, are found in a poll TD Canada Trust commissioned from Environics Research Group in which 2,407 Canadians were asked their thoughts on money and savings. The survey only includes those aged 25 or older, leaving out many younger millennials who were born as late as 1999.

Not surprisingly, responses differed based on age, with boomers most confident about the amount of money they have and their ability to manage it. Millennials are the least secure, with 65 per cent saying they spend too much and 71 per cent saying they don’t save enough.

Fewer Gen X respondents feel they overspend, but otherwise they’re nearly as worried about money as the younger generation, as they grapple with saving for retirement, children’s education and holidays, while paying off mortgages, loans and credit card debt.

All age groups put saving for retirement as their top priority, though it’s highest for Gen X.

Psychologist Bruce Morton from the University of Western Ontario was quoted in a press release saying people’s generation and its culture and economic reality influence their feelings on savings. Millennials’ sense of financial insecurity could be a result of larger economic uncertainty, said Morton.

“Faced with job market challenges and an uncertain economy, millennials may find it difficult to envision a concrete future, making saving for the long-term seem less reasonable,” he said.

Meanwhile, boomers grew up in the post-war heyday when there were jobs aplenty and the larger economy more stable.

Adam Fair, acting director of the Canadian Centre for Financial Literacy, said many people notice a trend toward a more consumerist society that borrows more heavily.

“All these ideas about being frugal seem to be important for previous generations but they don’t seem to hold as much value today,” said Fair.

Not to mention more pressure on the pockets of young people, who often are battling student debts while struggling to find decent-paying jobs, he said.

“A lot of people will discredit the millennials as being frivolous and discount the challenging economy that these young people are growing up in and how difficult it is to afford the things that everyone aspires to, like going to school, buying a house, retiring. All those things are becoming increasingly difficult to attain.”

Attitudes toward money by generation:

Percentage who feel they spend too much:
Millennials: 65
Gen X: 56
Boomers: 44

Percentage who feel they need to know more about savings and investment options:
Millennials: 55
Gen X: 51
Boomers: 45

Percentage who continually worry about having enough money:
Millennials: 66
Gen X: 66
Boomers: 56

Percentage who feel confident in their money management:
Millennials: 67
Gen X: 70
Boomers: 79

Percentage who continually feel they don’t save enough:
Millennials: 71
Gen X: 70
Boomers: 61

After retirement, what’s the top financial priority by generation?
Millennials: saving for a first home
Gen X: paying off a mortgage
Boomers: saving for a vacation

Source: TD Canada Trust

Gen X and millennials fret over savings - Moneyville.ca
Last edited by mentalfloss; Jan 28th, 2013 at 09:33 AM..
 
petros
#2
Which age group does the author fall into?
 
mentalfloss
#3
Quote: Originally Posted by petrosView Post

Which age group does the author fall into?

Which age group do you fall into?
 
petros
#4
Triple X
 
mentalfloss
#5
Quote: Originally Posted by petrosView Post

Triple X

 
Kreskin
+3
#6
It is interesting. People talk about the loose mortgage lending of the 90's and 00's but the early boomers, and older, were lent money under very little criteria. Often if one could chum with the bank manager he handed out the dough on a handshake. The old guard had no idea of how to evaluate their financial situations and were often lucky enough that they didn't need to because the economy made up for all the risk they and loose lenders took. It's a very different economy now, and the young generation has all sorts of tools on hand to evaluate their own situations. Plus the banks aren't handing money out on simple handshakes anymore.
 
petros
+2
#7
Quote: Originally Posted by KreskinView Post

It is interesting. People talk about the loose mortgage lending of the 90's and 00's but the early boomers, and older, were lent money under very little criteria. Often if one could chum with the bank manager he handed out the dough on a handshake. The old guard had no idea of how to evaluate their financial situations and were often lucky enough that they didn't need to because the economy made up for all the risk they and loose lenders took. It's a very different economy now, and the young generation has all sorts of tools on hand to evaluate their own situations. Plus the banks aren't handing money out on simple handshakes anymore.

It doesn't matter which generation you're in if you are smart enough to eliminate your debt load as fast as possible.

The no debt gravy train is a fun ride through life.
 
karrie
+3
#8
I am on the tail end of Gen X, raising two Millenials, from what I can glean from the 'categories' of generations online.

I've spent much of my marriage savings poor. Hubby puts away (I'm not joking) 40% of his pay into retirement, investments, and savings accounts. We scrimp and save to live on the rest. He worries incessantly that we don't save enough, but largely due to the fact that his company matches us a percentage to put into savings. So he sees money just sitting there for the taking, that we're not accessing.

Only in recent years, as we've hit the point of consistently maxing out rrsp contributions every year and putting the extra into tfsa's, has he relaxed and let there be some surplus mad money in our accounts.
 
Kreskin
+1
#9
Quote: Originally Posted by petrosView Post

It doesn't matter which generation you're in if you are smart enough to eliminate your debt load as fast as possible.

The no debt gravy train is a fun ride through life.

When you have inflation going up fast it's easy to eliminate debt. A 10,000 mortgage isn't a lot in 20 years when inflation is spiking. The old guard inflated their way out of debt, not managed their way out of it.
 
petros
#10
Quote: Originally Posted by karrieView Post

I am on the tail end of Gen X, raising two Millenials, from what I can glean from the 'categories' of generations online.

I've spent much of my marriage savings poor. Hubby puts away (I'm not joking) 40% of his pay into retirement, investments, and savings accounts. We scrimp and save to live on the rest. He worries incessantly that we don't save enough, but largely due to the fact that his company matches us a percentage to put into savings. So he sees money just sitting there for the taking, that we're not accessing.

Only in recent years, as we've hit the point of consistently maxing out rrsp contributions every year and putting the extra into tfsa's, has he relaxed and let there be some surplus mad money in our accounts.

Popcorn and library movies for entertainment is how we paid off our school and house debts by the time I hit 30. Sacrifice. Lots and lots of sacrifice.
 
karrie
+2
#11
Quote: Originally Posted by petrosView Post

It doesn't matter which generation you're in if you are smart enough to eliminate your debt load as fast as possible.

The no debt gravy train is a fun ride through life.

Hubby's company pays us more to save our money, than we pay to borrow it. So when we've got cash in hand, we always 'save' it first. We can pull it out later in a pinch and apply it to the mortgage if, say, he ever got laid off, etc.
 
petros
#12
Quote: Originally Posted by karrieView Post

Hubby's company pays us more to save our money, than we pay to borrow it. So when we've got cash in hand, we always 'save' it first. We can pull it out later in a pinch and apply it to the mortgage if, say, he ever got laid off, etc.

If something comes out of savings, savings gets paid back as fast as possible. It's not to be spent but a loan to yourself if needed.
 
Sal
#13
If I hadn't been debt free when I lost my job I would have been screwed three ways to Sunday. The biggest thing is mortgage reduction after that things kind of fall into place.
 
karrie
#14
Quote: Originally Posted by petrosView Post

If something comes out of savings, savings gets paid back as fast as possible. It's not to be spent but a loan to yourself if needed.

When we're saving 40% of his paycheque, that doesn't apply. If we want to take out of savings to buy something, like pay cash for 20 acres of land, we can. Trust me, we run no risk of spending ourselves poor. We're habitual squirrelers.
 
Locutus
+5
#15  Top Rated Post
We don't have a lot but we don't owe anyone a dime either. I live with that quite easily and sleep well at night.
 
Sal
+1
#16
Quote: Originally Posted by LocutusView Post

We don't have a lot but we don't owe anyone a dime either. I live with that quite easily and sleep well at night.

Me too, but I don't need a lot either, it's just the way I am. Right now I work contract and am between contracts, it sucks but at least I can feed myself and pay the bills because my cost of living is low and when I have money I don't spend it just because it's there.

I like to spend but not at the cost of my sanity.
 
taxslave
#17
Quote: Originally Posted by KreskinView Post

When you have inflation going up fast it's easy to eliminate debt. A 10,000 mortgage isn't a lot in 20 years when inflation is spiking. The old guard inflated their way out of debt, not managed their way out of it.

But trudeau inflated us into massive government debt to balance things out.
 
petros
+1
#18
Quote: Originally Posted by karrieView Post

When we're saving 40% of his paycheque, that doesn't apply. If we want to take out of savings to buy something, like pay cash for 20 acres of land, we can. Trust me, we run no risk of spending ourselves poor. We're habitual squirrelers.

I like being cheap and you know what? I look damn good in $3.99 flannel shirts and $40 Levis from Army and Navy.
 
karrie
+2
#19
Quote: Originally Posted by petrosView Post

I like being cheap and you know what? I look damn good in $3.99 flannel shirts and $40 Levis from Army and Navy.


I just bought a brand new wool coat. Normally 229 dollars, I paid 40. I do half my clothes shopping for my family at GoodWill. I renovate my house and buy my furniture as much as possible at Restore, GoodWill, etc. I am FRU-gal.
 
petros
+1
#20
Quote: Originally Posted by karrieView Post

I just bought a brand new wool coat. Normally 229 dollars, I paid 40. I do half my clothes shopping for my family at GoodWill. I renovate my house and buy my furniture as much as possible at Restore, GoodWill, etc. I am FRU-gal.

Sears bargain center. Just last week I scored 3 shiny new pair of Tiberland shoes for $9.99 a pair. My feet will still be the same size come fall and I'll need new shoes. When you see a deal like that, you've got to jump.
 
darkbeaver
#21
Saving is a good habit just don't leave it in cash or in a bank. Very soon default, banks close doors, empty boxes, hide in Switzerland in shadows while you boil paper certificates on engine block in winter wonderland. Be prepared or be sorry.
 
petros
+1
#22
Quote: Originally Posted by petrosView Post

Sears bargain center. Just last week I scored 3 shiny new pair of Tiberland shoes for $9.99 a pair. My feet will still be the same size come fall and I'll need new shoes. When you see a deal like that, you've got to jump.

Sh*t....Sorry....I made a mistake I didn't pay $9.99 a pair.



They were $9.74
 
karrie
#23
Quote: Originally Posted by darkbeaverView Post

Saving is a good habit just don't leave it in cash or in a bank. Very soon default, banks close doors, empty boxes, hide in Switzerland in shadows while you boil paper certificates on engine block in winter wonderland. Be prepared or be sorry.


This summer we pulled a huge chunk of our savings out, and paid cash for land. What a great feeling. Concrete, usable, never going anywhere.
 
petros
+1
#24
Quote: Originally Posted by karrieView Post

This summer we pulled a huge chunk of our savings out, and paid cash for land. What a great feeling. Concrete, usable, never going anywhere.

Land is better than gold.
 
EagleSmack
+1
#25
Gen Xers are for the most part children of the "Quiet Generation". People that were children during WWII so they still experienced the Great Depression and penny pinching of the WWII years... albeit from a very young age. Maybe we get our money saving traits from them?

I have very little debt. I have an American Express credit card for a large purchase that my debit card won't handle. It needs to be paid right away. I refuse to have a normal credit card. If you don't have the money... don't buy it.
 
Trex
#26
There are also a fair number of pre retirement Boomers and Xers out there who feel it is perfectly logical
to carry mortgage debt into retirement.
Boggles the mind
 
karrie
+1
#27
What most people my age talk about as impacting their money management is the mortgage crash in the 80's. I was a bit young, I didn't see as much of it.

But I also grew up in a small farming community (hubby and I both), and we watched our parents lose their shirts to farming.

That's where our impact comes from more than from anything residual of WWII
 
mentalfloss
#28
Quote: Originally Posted by petrosView Post

Sh*t....Sorry....I made a mistake I didn't pay $9.99 a pair.



They were $9.74


You also haven't replaced your couch since the 70s. Double thumbs up Mr. Thrift.
 
petros
#29
Quote: Originally Posted by mentalflossView Post

You also haven't replaced your couch since the 70s. Double thumbs up Mr. Thrift.

It's from 99 and the best damn napping couch a den could ask for.

What's in your man cave?
 
darkbeaver
#30
Quote: Originally Posted by karrieView Post

This summer we pulled a huge chunk of our savings out, and paid cash for land. What a great feeling. Concrete, usable, never going anywhere.

Magniffy, my old man said buy land they don't make it anymore, he was wrong, but I did it anyway. There are actually things to eat walking arround there right now and most of the landscape will burn. Land is #1. you can pick it up in your hands!
 
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