Millennials are resolving to save more in 2019: study

Times have been good for the economy — but many young Americans are worried about their finances.

And they are resolving to do better in 2019.

Those are some of the conclusions of a recent study by Principal Financial Group of how various groups view next year.

The survey found many young people are out to save and budget more effectively.

“Nearly all American millennials (94 percent) plan on making financial resolutions in 2019,” the report said. “As the year winds down, more Americans are reflecting on where they busted their budgets in 2018, and importantly, what they’re committed to correcting in 2019.”

What do they plan to fix?

Twenty-nine percent said they spend too much on dining out, followed by 27 percent who overspend on groceries.

In 2019 about half of Americans are “aiming to save more each month,” the survey said.

Respondents also said they want to reduce their monthly spending (38 percent) and pay off credit card debt (29 percent).

One adviser says it’s crucial to save more to prepare for potential bad times ahead.

“They should have five to six months of cash on hand to prepare for the potential period of unemployment,” said Aaron Schindler with Wealth Advisory Group in New York City.

The average millennial — those roughly between the ages of 18 and 35 — isn’t very different from the rest of Americans. Eight of 10 US adults of all ages say they will make a financial resolution for 2019, according to the National Endowment for Financial Education.

More than half, an NEFE survey said, “indicated that saving money was their biggest cause of financial stress, beating debt (46 percent) as the top financial stressor of the year.”

NEFE President Billy Hensley said that having endured the recent economic roller-coaster ride, many people are buckling down.

“Over the past year, [amidst] uncertainty and volatility surrounding the stock market, rising interest rates, as well as concern about an economic slowdown, we are seeing incredible determination from Americans who want to take control of their finances and improve their financial well-being in 2019,” Hensley said.

Hensley said savers should not stress out, but “start small” and set up an automatic savings plan.

Having some savings, added Schindler, is “important because the law of physics tells us that it is inevitable that the economic expansion has to end.”