The age of 18 may mark the official entrance to adulthood, but a new survey shows that plenty of millennials still need some grown-up lessons to help them understand how to grow their savings accounts.
Think Finance, a company that develops online financial products that straddle the line between payday loans and credit cards, surveyed more than 1,000 consumers ages 18 to 34 on their financial habits and banking preferences, and one of the results is particularly troubling: Less than half of the respondents have an emergency savings fund of at least $1,000.
No one expects account holders straight out of high school to jump on the fast track to saving, but $1,000 simply isn't enough to cover the costs of situations such as a job loss or a hospital visit. Based on more of the survey findings, the prospects for adding to those emergency funds look rather bleak. Seventy-seven percent of respondents indicated that it's very difficult to find a well-paying job.
"The economy is slowly improving, but it's still a tough time to be starting a career and saving for the future," Ken Rees, president and CEO of Think Finance, said in a press release.
While it may be a challenging time for young adults, identifying opportunities to save are still essential. The survey shows that some millennials may want to take long, hard looks at their monthly living expenses. Sixty-four percent of respondents indicated some level of worry about their ability to make rent or mortgage payments. If you can't afford the expected costs of an apartment or home, it may be time to consider moving to a more affordable place. After all, if your online banking statement is falling to the single digits on a regular basis, you're certainly going to struggle to figure out how to stash more money away for the long-term.
Do you fall into the "millennial" classification? What are you doing to ensure you're putting away enough money for expenses down the road?