It would be fair to say that 2023 wasn’t exactly an easy year to save money. Although inflation wasn’t quite as rampant in 2023 as it was a year prior, living costs were still elevated. And many Americans no doubt struggled financially due to higher food, utility, and housing costs.
Still, the average U.S. adult managed to save a rather impressive $6,138.06 last year, according to New York Life’s latest Wealth Watch survey. But of all age groups, millennials managed to save the most.
Leading the pack
Millennial savers socked away an average of $9,299.45 in 2023. By comparison, here’s what other generations saved:
- Gen Zers: $6,440.67
- Gen Xers: $5,132.20
- Baby boomers: $4,059.72
The fact that millennials led the pack on the savings front is a little surprising, mostly because many Gen Xers are further along in their careers and potentially in a position to earn more money. Also, millennials, by nature, might have higher child care costs to grapple with than Gen Xers, since their children are likely to be younger.
That said, it’s not so surprising that millennials’ savings outpaced those of Gen Zers, who are younger and may have less workplace experience. The typical Gen Zer might earn a considerably lower wage than the typical millennial.
It’s also not a shock that millennials outpaced baby boomers in the savings department. Many boomers are already of retirement age and are either partially or fully done with work. Plus, some boomers may be in a position where they’re happy with the savings they’ve built up and would rather use their money to help out younger family members.
How to boost your savings this year
No matter what generation you fall into, you may be eager to give your savings a nice lift in 2024. To achieve that goal, here are some steps you can take:
- Pay yourself first. Transfer money out of your checking account after each paycheck arrives and put it directly into your savings. That way, you won’t be tempted to spend it. You can also put this process on autopilot.
- Don’t spend money on interest. Any dollar you pay to a credit card company is a dollar you can’t put in your own bank account. Track your credit card spending carefully during the month to ensure you can pay your balances in full once they come due.
- Join the gig economy. There’s plenty of opportunity to pick up a side job and give your income a boost. That’s an easy way to pave the road to more savings.
Even if you didn’t manage to save any money in 2023, you have the majority of 2024 ahead of you. A few small changes could lead to a higher savings balance by the end of the year. That way, when next year’s data comes out, you might be in a position to take a look at the average amount saved in 2024 and say, “Well, what do you know? I did better.”