Prudent Money “Stats Show That There is Hope for the Future”

June 27, 2016

by Bob Brooks

Stats Show That There Is Hope for the Future

Millennials are showing signs of hope that maybe the bad financial habits of my generation are starting to reverse. All it takes is the habits of one generation to spread to the next generation. Thus we take a look at generation Z. This is the generation that is estimated to start mid 90’s to early 2000’s. The College Savings Foundation 2016 Survey of Youth shows some encouraging statistics.

Out of all of the generations, the Millennials have the highest savings percentages. Well it appears that Generation Z is not too far behind. Plus, they might be the only generation that is looking at college funding the most realistically.

Here are some results from the survey:

60% of high school students across the country are saving for their higher education, up from 51% in 2015 and the highest level since 2010.

Almost all (89%) high school students surveyed plan to contribute toward all or at least a portion of their education costs – up from 75% one year ago and also at the highest level since the survey’s inception.

53% already have jobs to accumulate savings for higher education. Looking forward, 63% intend to work while attending college, 31% may work while in college, and of those, 82% envision working part time while at school.

Not only are more students saving, their saving discipline is having an impact:  78% of savers have accumulated more than $1,000. That is better than a high percentage of adults.

Two questionable results had to do with scholarships and student loans. 71% thought that they would borrow money for school. That is still way to high of a percentage. 85% plan to or believe they may receive a scholarship. That of course might show a little of that entitlement (other people’s money) and unrealistic mindset.

OK I will even take the stats that say they will borrow and they think that they are a little entitled to scholarship money. Beyond those two stats, this shows a generation that is showing responsibility and developing strong habits. This is exactly what we want to see for the future.

Maybe this is a generation that sees the writing on the wall. Maybe this is a generation that recognizes that their parent’s generation are not very financially responsible. Regardless, these are results that state we are heading in the right direction. Now, if we can only do something about this whole desire for socialism.