Younger Millennials Seem More Money Savvy Than Their Older Peers
In its latest Financial Independence Survey of more than 3,000 Americans, PNC compared the financial habits of young adults ages 20 to 24 with those ages 25 to 29. It discovered that the younger set carries half the debt burden ($17,100) of the older set ($35,600), and nearly one third of the younger Millennials have no debt whatsoever, compared to just one in five of the older group.
Additionally, the younger respondents are more likely to save money (90%) than their older peers (83%), and report putting aside a larger proportion of their annual incomes.
Of course, as the breakdown below shows, older Millennials are twice as likely to own a home and carry significantly more mortgage debt, which is a primary reason for the skew. However, the younger set shows a much better handle on credit card debt - carrying an average $500 each, compared to the $2,100 held by those 25-29 - as well as lower car loans and miscellaneous debts.
Average debt carried by Millennials age 20-24:Education - $8,200 Credit Card - $500 Car Loan - $1,500 Medical Bills - $1,100 Loans from parents/other - $800 Mortgage - $4,500 Other - $500 Average debt carried by Millennials age 25-29: Education - $8,500 Credit Card - $2,100 Car Loan - $3,600Medical Bills - $2,100Loans from parents/other - $1,000 Mortgage - $17,000 Other - $1,500
"Financial maturity in this generation has noticeably shifted," said Cary Guffey, a financial advisor at PNC Wealth Management, in a statement. "Younger Millennials just entered adulthood when the economy shifted downward, and as a result, it's clear they've become more cautious by avoiding debt."
It's important to note that while young 20-somethings may indeed be more careful about taking on debt, it's also possible that they have fewer expenses.