Millennials may strive for financial independence, but as a whole, they’ve been slow to break out on their own. According to Fidelity Investments’ Millennial Money Study, nearly half (47 percent) of millennials still have their parents pay for certain items for them, namely cell phone plans, utilities, movie and TV streaming services and cable. That’s not to mention the rising number of millennials who are living with their parents, now at 21 percent. The benefit of this? Millennials are learning to be more prudent with their finances, as 85 percent say they have some form of savings, up from 77 percent in 2014, and 59 percent have set aside an average of $9,100 in an emergency fund. Sixty percent also report saving for retirement, up from 51 percent in 2014. But while millennials are saving, they’re still hesitant about investing. Of those with an emergency fund, 86 percent are storing it in a traditional savings account, where it’s likely earning less than 0.25 percent in interest. In addition, only 9 percent of millennials view themselves as investors, compared to 44 percent who identify as spenders or 46 percent who consider themselves savers.
Source: Millennials Having a Hard Time Cutting the Financial Cord
