Millennials invoke a lot of opinions – they’re the “me” generation, they are accused of acting entitled in job searches, they’re living in their parents’ basements. There are several articles on the internet that would tell you millennials are worse off than their parents.
However, recent studies show that millennials who are starting families are saving at higher rates than their parents, or Gen X parents, and their parenting styles are very different.
So, who are these millennial parents, and how are they out-saving every other generation?
- Employed millennial parents are saving for retirement at a higher rate
- A higher percentage of working millennial parents are contributing to retirement than
- Millennial parents are more prepared than non-parents
In 2017, millennials made up 90% of all new parents. Due to the sheer amount of information available online, millennial parents are better informed for raising their children, and share their experiences with their peers.
Millennials not only wait longer to have children, their thoughts on family structure are non-traditional. Many own homes with partners who are not legal spouses, which could bring on a real legal nightmare if they aren’t prepared in the event of a separation or death.
Due to the staggering amounts of student debt accrued by this generation, the urge to tighten the budget to not incur any other debt is strong with millennials. The more you unpack what they’ve endured, the more you realize they’re not so much entitled as they are careful.
Estate planning for millennials will only become increasingly important as they feel the need to be prepared for the unknown: incapacitation, death documents and asset distribution management.
Oftentimes they even underestimate the value of the assets that they possess, such as retirement accounts, life insurance policies, motor vehicles, real estate, home furnishings or digital assets.
Reference: nerdwallet.com “Millennial Parents Outpace Gen X, Boomer Parents on Retirement Savings”