"Today's millennials are more serious about their finances than we've seen historically," said Andrew Plepler, global head of environmental, social and governance at Bank of America.
"They have more financial acumen than people suspect."
More than half regularly check account balances or track their expenses, and 46% pay their credit cards in full each month, according to the study. Nearly 40% have boosted their credit score in the past year.
For my generation, many
followed these three major steps in life.
(1) Get married
(2) Have a child
(3) Buy a home
Apparently these three steps are also happening to many Millennials (the order of the steps may vary).
Homeownership is a priority for younger millennials. Of those who are saving, 40% of younger millennials (age 24 to 30) are saving to buy a home. "I think the home is still an anchor asset guiding goal-setting for this population," said Plepler. "They see it as a part of their stability in life and also wealth building."
An overwhelming number of them, 82%, would rather buy a smaller house than a larger home at the top of their budget. Over half would opt to stay in a less desirable job with higher pay than move to a more desirable job with lower pay.
But Plepler says that a bit of anxiety about finances is probably not a bad thing.
"It keeps them from being complacent," he said. "We're 10 years removed from the financial crisis and we have lived through a period where home prices and the stock market went up. But this generation knows that it can go down, too."
80+ percent of 30 to 39 year olds in households living in single family homes are married with children. Children drive single-family home living.
Homeownership rates are accelerating. 25 to 39 year olds are driving homeownership and that the birthrate (more kids, more demand for houses) is up.
We are at a 30-year low of inventory of new and existing homes in the United States.
The median age of first marriage in the US is 27 for women and 29 for men, according to the US Census Bureau.
Millennials are cohabitating and even buying homes together before marriage. More couples are cohabitating before marriage - as much as a sixfold increase from their parents' generation - is contributing to a decline in divorce rates.
Some couples are even buying homes together before getting engaged, prioritizing homeownership over marriage. This reflects a generational shift in attitudes toward marriage and is a result of economic conditions.