How Much Millennials Living Paycheck to Paycheck Have in Savings
Written by
J. Arky
Edited by
Zuri Anderson
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Generations of people are known for various characteristics, whether they are true or not. One group that has the spotlight focused on them and their money habits are millennials, those people born between 1981 and 1996.
This age group currently includes those folks in their very late twenties and mid forties, which might lead to the conclusion that this demographic treats money very differently than their older and younger counterparts.
That’s particularly the case for millennials who live paycheck to paycheck — that is, millennials who earn a paycheck and spend all of it by the next one to cover their personal expenses.
In this article, GOBankingRates breaks down how much money people in this demographic put aside into savings, plus other revelations about their financial health and habits.
The Numbers
According to a recent study in Forbes, 52% of millennials surveyed have less than $5,000 saved, compared to 42% of Gen X and 29% of baby boomers respondents. That data also showcased how 31% of millennials in 2024 had $1,000 or less in savings. With those who are living paycheck to paycheck, it often is lower.
There are many reasons for this, some of which buck the stereotype often thrust upon millennials: That they are entitled, that they are reckless when it comes to spending, and that they do not appreciate what they have.
In actuality, many millennials are facing the same struggles to make ends meet, pay their bills as prices go up, and are often saddled with tens, if not hundreds, of thousands of dollars in student loan debt. That’s not even counting the credit card debt.
Millennials and Credit Card Debt
A study conducted by PYMNTS Intelligence found that the average outstanding credit balance for cardholders struggling to pay their monthly bills is $7,030, summing up that those who can least afford credit card debt, have the most, with a high ratio being millennials.
The findings concluded that anyone struggling to get financial sound usually carries a balance of $7,000 or more in credit card debt. This creates a never ending doom loop where high interest payments consume an entire paycheck, a struggle millennials know all too well.
PYMNTS went on to explain that the average amount of savings consumers who live paycheck to paycheck have readily available is about $5,900. For millennials or anyone else living paycheck to paycheck without issues paying their bills, that figure goes up to $7,758, however, it drops for those in that same scenario who do have trouble paying their cost of living expenses, amounting to just about $2,447.
The report concluded that “stability, more so than income or age, enables wealth-building.”
What Can Millennials Do About Their Financial Health?
It’s a hard rock to get out from under, but if millennials want to see higher numbers in their savings account, they should focus on paying down debt, getting rid of credit cards when possible, paying bills on time, and working with a financial planner for a strategy that works for their job and lifestyle. It m
ight not be easy at first, but gradually, millennials and any other generation living paycheck to paycheck, will start to see their savings grow when healthy and realistic money habits are put into place.
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