Millennials aren’t like the average consumer when it comes to saving money. But according to a recent survey by Bankrate.com, Americans between 18 and 29 years old (commonly known as the millennial generation) are three times more likely to keep their long term investments in the form of cash. Unlike other generations, who have been investing in the stock market, millennials seem hesitant to place their money in any other hands, especially risky investments. The survey showed that 39% of millennials chose cash as the best way to invest money that they don’t need for at least 10 years. That was three times the number that said they would invest in stocks.
Many argue that millennials are scared of risk due to the recession culture they’ve grown up in. As a result, they have become very conservative with their money. But could this cause problems in the future? According to chief financial expert Greg McBride at Bankrate.com, “These findings are troubling because millennials need the return of stocks to meet their retirement goals.”
Although having cash may seem helpful right now, millennials may need to get a little more risky if they want to retire comfortably.
Source: CNN Money
