Most Americans in their early 20s begin to experience financial independence – for better or worse. Due to lack of experience and responsibility, they have been branded as being less than fiscally fit. They have little to lose in most instances – no home ownership or families – and, historically, act like it, taking excessive financial risks and blowing cash.
Times are changing.
“Today, only 22% of investors under the age of 35 say they’re willing to take on a substantial level of risk… Compare that with 2001, when that same group outpaced every other age bracket.” CNNmoney.com points out that the financial crisis that hit today’s families, did so at quite an impressionable point in their lives. The article notes that generation Y is the largest group suffering from the unemployment crisis, as they are watching their parents prolong retirement, return to work, and hurting financially. These events have led to their being much more risk-adverse with their financial choices and more careful with cash. CDs, Treasuries, and high-yield savings accounts top the list of products most often selected by those getting their feet wet in the recession. These individuals are also setting savings goals for life events like the aforementioned first home or baby, weddings, and vacations. And as the average age for weddings and first home purchases continues to trend later, Generation Y is responding by saving more and saving early.
Savings goals like these are among the most popular on SmartyPig today. With our competitive interest rates, social features that allow friends and family members to pitch in, and huge cash back offers, many Americans are finding no better place to successfully save for their life events and experiences than SmartyPig.
As always, good luck with your savings goals!
Sarah Foss, SmartyPig’s Mad Media Woman