Quote:Spending money with abandon might not be suitable for your wallet, but it makes the national economic data look good. Conversely, saving is prudent, but it can put a drag on GDP numbers in the short term.

It turns out Americans are saving more, which has some observers worried. The U.S. personal savings rate — which is a simple subtraction equation of income minus spending — was 8.1%, the St. Louis Federal Reserve reported. In 1996, the savings rate was 5.7%.

That's good, right? Not according to Raymond James analyst Tavis McCourt, who writes that increased savings have a "disinflationary impact, driving the relatively slow growth and low inflation in this recovery."

Whom should we blame? Millennials, of course.

Millennials are playing it safe and putting more money into their savings accounts, McCourt noted. "The U.S. consumer has had enough, so they are saving instead of purchasing like the last generation," he said.

This trend confirms what we already know: Young adults are spending less than their parents and grandparents for several reasons. Millennials earn less than their predecessors, and the money they do have disproportionately ends up in the bank.

In 2014, investment banking company UBS reported that millennials were the most financially conservative generation since the Great Depression. And a recent Morning Consult survey found that 69% of millennials had a savings account.

Perhaps young adults learned from the 2008 recession, as McCourt suggested. And who can blame them? They watched their parents lose their jobs, foreclose on their homes, and live paycheck to paycheck. Now they're doing what they can to prevent that from happening again.

Want to see the lasting impact of the Great Recession? It shows up in the savings rates of today's young adults.

Link

(10-11-2019 06:32 PM)CrimsonPhantom Wrote:  

Quote:Spending money with abandon might not be suitable for your wallet, but it makes the national economic data look good. Conversely, saving is prudent, but it can put a drag on GDP numbers in the short term.

It turns out Americans are saving more, which has some observers worried. The U.S. personal savings rate — which is a simple subtraction equation of income minus spending — was 8.1%, the St. Louis Federal Reserve reported. In 1996, the savings rate was 5.7%.

That's good, right? Not according to Raymond James analyst Tavis McCourt, who writes that increased savings have a "disinflationary impact, driving the relatively slow growth and low inflation in this recovery."

Whom should we blame? Millennials, of course.

Millennials are playing it safe and putting more money into their savings accounts, McCourt noted. "The U.S. consumer has had enough, so they are saving instead of purchasing like the last generation," he said.

This trend confirms what we already know: Young adults are spending less than their parents and grandparents for several reasons. Millennials earn less than their predecessors, and the money they do have disproportionately ends up in the bank.

In 2014, investment banking company UBS reported that millennials were the most financially conservative generation since the Great Depression. And a recent Morning Consult survey found that 69% of millennials had a savings account.

Perhaps young adults learned from the 2008 recession, as McCourt suggested. And who can blame them? They watched their parents lose their jobs, foreclose on their homes, and live paycheck to paycheck. Now they're doing what they can to prevent that from happening again.

Want to see the lasting impact of the Great Recession? It shows up in the savings rates of today's young adults.

Link

Good. Thats how a healthy economy works. lol...I always figured Millennials were too broke to save.

I'd just like to gently object to the whole notion of a "millennial".

I forget what they called me when I was a twenty-something, but they didn't try to categorize me into some sort of box.

they simply ridiculed me as being young.

don't you wish we could get back to that? laughing at individuals as individuals, rather than involuntary members of groups?

(10-11-2019 06:59 PM)EagleX Wrote:  I'd just like to gently object to the whole notion of a "millennial".

I forget what they called me when I was a twenty-something, but they didn't try to categorize me into some sort of box.

they simply ridiculed me as being young.

don't you wish we could get back to that? laughing at individuals as individuals, rather than involuntary members of groups?

It's honestly bonkers to me. A lot of people call anyone who is young "Millennial" even though a lot of Millennials are nearly 40. You still hear people call current college aged kids Millennials even though that is entirely different generation. "Millennial" = bad to the older crowd these days.

The Parodox of Thrift.

(10-11-2019 09:28 PM)TigerBlue4Ever Wrote:  The Parodox of Thrift.

just wait until the boomers and Xers finally die off and the compound interest of ignoring infrastructure rears it's fugly fk'n head....

(10-11-2019 06:59 PM)EagleX Wrote:  I'd just like to gently object to the whole notion of a "millennial".

I forget what they called me when I was a twenty-something, but they didn't try to categorize me into some sort of box.

they simply ridiculed me as being young.

don't you wish we could get back to that? laughing at individuals as individuals, rather than involuntary members of groups?

Ehhh. Its been going on my whole life---but Im not sure it was around much before that. Giving generations a tag has definitely been a thing since the "Baby Boomer" generation. Gen-X followed. After that---there's a bunch of names for the same basic generation (Gen-Y/Net Gen/Millennials). I think Gen-Z is the name set aside for todays children that will follow the Millennials. Interestingly, I dont think the WWII generation had a tag name" growing up---but post Baby-Boomer society has created a name for it and retroactively applied it (Greatest Generation).

(10-11-2019 11:57 PM)Attackcoog Wrote:  

(10-11-2019 06:59 PM)EagleX Wrote:  I'd just like to gently object to the whole notion of a "millennial".

I forget what they called me when I was a twenty-something, but they didn't try to categorize me into some sort of box.

they simply ridiculed me as being young.

don't you wish we could get back to that? laughing at individuals as individuals, rather than involuntary members of groups?

Ehhh. Its been going on my whole life---but Im not sure it was around much before that. Giving generations a tag has definitely been a thing since the "Baby Boomer" generation. Gen-X followed. After that---there's a bunch of names for the same basic generation (Gen-Y/Net Gen/Millennials). I think Gen-Z is the name set aside for todays children that will follow the Millennials. Interestingly, I dont think the WWII generation had a tag name" growing up---but post Baby-Boomer society has created a name for it and retroactively applied it (Greatest Generation).

indeed. however, whatever generation you think that we are in is somehow named by the next generation. the whole exercise in nomenclature is performed by those that are immune to our input.

that has always seemed to me to be odd.

(10-11-2019 10:03 PM)stinkfist Wrote:  

(10-11-2019 09:28 PM)TigerBlue4Ever Wrote:  The Parodox of Thrift.

just wait until the boomers and Xers finally die off and the compound interest of ignoring infrastructure rears it's fugly fk'n head....

That's been a giant disappointment from Trump. They should float some 100 year bonds at these interest rates and truly address the infrastructure issue.