Young Adults to Spend Less, Save More in 2011
by Suada Kolovic
It seems like a life of excess is so last year. According to a Chase Slate-U.S. News survey, young adults between the ages of 18 and 34 are more likely to say they want to save more, spend less, pay down debts and develop a budget in 2011 than older generations. In a national survey, 1,000 American adults were asked if they planned on changing their financial habits in 2011 and while 54 percent of respondents aged 18 to 34 said yes, only 27 percent of those aged 55 to 64 and 23 percent of senior citizens agreed with that sentiment.
So why the shift? According to David Weliver, founder of the Money Under 30 blog, the recession taught 20-somethings to create a financial safety net for themselves. "We're starting our adult lives knowing the importance of having savings to fall back on in the event of job loss, and that we cannot simply buy a home and ride its perpetually increasing value to retirement. We're more goal-oriented about our finances—because we have to be." The report also noted that young adults are more optimistic about their finances and the economy overall and more likely to use online money management tools to help them stay on track.
Did your list of New Year’s resolutions include changing your spending habits? Let us know what you’re doing to avoid debt.