Listen Now: Financial Freedom
When it comes to being financially savvy, millennials might be getting a bad rap.
According to recent reports, millenials are throwing all their money away on things like iphones and avocado toast. Or they are so bad at saving they might be dead before they can afford to retire.
Turns out, some might be doing better than you think. In a Fidelity Investments analysis of people born between 1981 and 1997, who have participated in their company’s 401K for ten years, the average balance was just over $100,000. And it’s not because of rich parents or because they have high-paying jobs, some even have student loans, instead the secret is consistency.
If you steadily save a small portion of your income over a long period of time… it adds up. In addition, don’t spend over your limit and live within your means. But that doesn’t mean being a super saver. Less than a third of people surveyed have a total savings rate of fifteen percent of their income.
Just enough left for your occasional piece of avocado toast.
CBS News Radio national business journalist Brian Banmiller has spent more than 40 years in the news industry, covering business, politics and the economy on television, radio and in print. Currently, his “Banmiller on Business” reports are delivered to an audience of millions nationwide.