Market Overview

5 myths about millennials

Myth 1: Millennials don’t save for retirement

Let’s be clear: As a whole, no generation is saving or has saved as much as it should. Millennials — generally considered to be between ages 22 and 37 — are no different. But it’s not for lack of trying, and they’re not doing significantly worse than their parents or grandparents did.

According to the most recent Survey of Consumer Finances, households headed by someone under age 35 have a median $12,300 in retirement savings. That’s not enough. But neither is $120,000, which is the median for ages 55 to 64 — and those people are actually on the brink of retirement age.

Myth 2: Millennials blow their money on frivolous things

This is a survey favorite, particularly when framed as a reason millennials aren’t saving. Somehow, you can be responsible for killing everything most people spend money on — dining out, department stores, vacations — and still be shamed as a careless spender.

Myth 3: Millennials are job hoppers

The truth: They’re right in line with Generation X when it comes to changing jobs. According to a Pew Research Center analysis of government data, 22% had worked for their current employer for five years or more in 2016, compared with 21.8% of Generation X workers in 2000 (when they were the same age). The analysis found that college-educated millennials actually have longer track records with their employers than Generation X workers did in 2000.

Myth 4: Millennials are unambitious

According to research from Bank of America, BAC, -0.59% millennials are more likely to ask for a raise. The data found that 46% of millennials have asked for one in the past two years, compared with 36% of Generation X and 39% of baby boomers. Even better, they have a good batting average: Of those who asked, 80% received.

Myth 5: Millennials don’t want to buy houses

While many millennials struggle to afford their own home, they’re working toward it. NerdWallet’s own research from this year found that 82% of millennials say buying a home is a priority. In fact, they were the generation most likely to say they’d like to buy a home to rent out for extra income. (What was that about a lack of ambition?)

5 myths about millennials, MarketWatch, Oct 02
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