Through The Generations

Millennials Lead the Pack in Sticking to Savings Resolutions

Nearly half have stayed on track in 2020

A new study from CIT Bank challenges the preconceptions bout this generation’s views on money, savings and retirement planning.

PASADENA, Calif., Feb. 13, 2020 /PRNewswire/ — Shattering the stereotype that millennials don’t prioritize saving, nearly half of this group who made a New Year’s resolution to save more say they have stayed completely on track in 2020, according to CIT Bank’s recent survey, conducted by The Harris Poll.

The survey indicates that millennials are doing a far better job than other generations when it comes to sticking to their financial resolutions.1 By comparison, only a third of Gen Z, Gen X and Boomers say they have remained committed to their savings goal.

While over half of U.S. consumers who made a resolution said that saving money is their top goal in 2020, Gen Z and Millennials lead the pack in prioritizing saving in the new year, 79% and 69% respectively, compared to 59% of Gen X and 41% of Boomers.

“We’re encouraged to see consumers sticking with their goals well into the new year,” said Ravi Kumar, head of direct banking at CIT. “Millennials and Gen Zers, in particular understand the benefits of creating a financial cushion and are taking the necessary steps to do so.”

Sticking to Goals

So how are they doing it? Setting spending limits on debit or credit cards is the most common strategy that U.S. consumers are using to stick to their financial resolutions (48%), followed by reading more financial tips (28%), downloading a budgeting app (24%) and enlisting a buddy for accountability (16%).

“Card controls will prevent you from blowing your budget and can be a powerful tool to remain on course in keeping a financial resolution,” continued Kumar.

Despite efforts to remain focused, keeping a New Year’s resolution isn’t always a walk in the park. Compared with keeping a financial resolution for a year, nearly half (48%) of all U.S. consumers say bringing their lunch to work every day would be easier. A third believe losing 10 pounds is less challenging and another 8% each say running a marathon or obtaining an advanced degree is easier.

Excerpts From CIT’s Study: New Year’s Resolutions By The Numbers

 Sticking to your goals
So far in 2020, Millennials have completely stayed on track with their financial resolutions to save more money more than any other generation.

  • 48% Millennials
  • 35% Gen Z
  • 33% Gen X
  • 32% Boomers

Spending money to make your goals happen
68% of U.S. consumers who made a resolution in 2020 said they spent money so far to meet their goals.

  • 16% spent between $1-50
  • 16% spent $501 or more
  • 14% spent between $51-$100
  • 12% spent between $101-$250
  • 10% spent between $250-$500

Saving more is the most common resolution in 2020
57% of U.S. consumers said that saving more money is their top resolution this year, particularly among Gen Z and Millennials, followed by:

Millennials and Gen Zers, in particular understand the benefits of creating a financial cushion and are taking the necessary steps to do so...

57% Save more money

38% Lose weight

34% Spend more time with family or friends

25% Plan or go on a dream vacation

22% Kick a bad habit

Following through on a financial goal
48% of U.S. consumers who made a resolution in 2020 say setting spending limits on debit or credit cards is a strategy they use to stick to a resolution, followed by:

  • 48% Set a spending limit on a debit or credit card
  • 28% Read more financial content
  • 24% Download a budgeting app
  • 16% Enlist a “buddy” for accountabilit

The easiest effort
Compared to keeping a financial resolution, 48% of U.S. consumers say bringing their lunch to work every day is an easier goal to keep, followed by losing 10 pounds, running a marathon or getting an advanced degree. Another quarter say none of the options presented are easier than keeping a financial resolution.

  • 48% Bring lunch to work every day
  • 33% Lose 10 pounds
  • 26% None of these are easier
  • 8% Run a marathon
  • 8% Get an advanced degree
  • Of those who made a financial resolution in 2020, 67% say they are somewhat or very likely to open a new account to help meet financial objectives. Consider taking advantage of a new savings account to help you reach your financial goals. CIT Bank’s Savings Builder provides a leading rate of return for those who save $100 or more each month.

 

Find out more about how U.S. consumers are sticking to their resolutions here.

 

 

About CIT
CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals. CIT Group Inc. (NYSE: CIT) is a financial holding company with over a century of experience and operates a principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender). The company’s commercial banking segment includes commercial financing, community association banking, middle market banking, equipment and vendor financing, factoring, railcar financing, treasury and payments services, and capital markets and asset management. CIT’s consumer banking segment includes a national direct bank and regional branch network. Discover more at cit.com/about.
1 This survey was conducted online within the United States by The Harris Poll for CIT from Jan. 13-15, 2020 among 2,021 U.S. adults ages 18 and older. Generations are defined as: Gen Z (ages 18-24), Millennials (ages 25-38), Gen X (ages 39-54), Boomers/Seniors (ages 55+).This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.
SOURCE CIT Group Inc.