NEW YORK (MainStreet) – With New Year’s Eve behind us, more Americans are resolving to get serious about budgeting and saving money. But it turns out that young people are a lot more likely than their elders to have dollar signs on their 2011 to-do list.
That's the finding of a new study by Chase Card Services and U.S. News and World Report, which looked at the personal finance resolutions of Americans going into 2011. The study found that 54% of Americans aged 18-34 are resolving to save money and improve their budgeting and money management in the coming year. That's excellent news in light of other surveys that have sounded the alarm over the poor savings habits of Generation Y, many of whom are not on pace to have sufficient retirement savings.
The bad news, though, is that their elders are considerably less likely to show the same urgency when it comes to saving and budgeting. Just 41% of those aged 45-54 are resolving to save more, and that number drops all the way down to 27% for those aged 55-64. It's not clear whether these older generations think they're on pace to retire comfortably or if they're simply stuck in their ways, but the fact is most Americans are under-prepared for retirement. Indeed, a study by Wells Fargo found that those aged 50-59 had saved an average of only $29,000, well short of the $300,000 or so that most Americans need to retire comfortably.
The moral of the story? Whether you're young or old, it's time to take another look at your resolutions and consider adding “save for retirement” to the list.
—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.