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Millennial and Gen Z Savings Priorities

A new study explores the saving and credit-care habits of Millennials and Gen Z consumers, couples, in particular.

Among other things, the study by LendingTree found that Millennials and Gen Z-ers are saving more for houses than for babies. (That follows an earlier report that showed Millennials are less interested in homebuying than ever.)

In fact, nearly 6 in 10 (57% respondents) Millennial and Gen Z couples are saving for a house, while just about half are saving for a baby. The third priority for this generation of couples is saving for a wedding, at 38%.

Here's how the data panned out in regard to the marriage-baby-home desires among respondents:

  • Younger millennials (60%) are more likely than their older counterparts (56%) to say they’re saving for a house.
  • Meanwhile, 46% of millennial and Gen Z couples are saving for a baby, but that percentage jumps to 55% for those who are married. And 69% of those earning $100,000 or more also said they were.
  • Lastly, we asked those who were dating (but not engaged) whether they were saving for a wedding. In total, 38% said they were. Breaking it down further, 67% of those earning $100,000 or more were doing so, versus 26% of those earning less than $25,000.

The study examined several credit-related issues with which couples contend—arguments over financial decisions, differing views on finances, saving for the future, discussing debt, and joining bank accounts, to name a few.

The results, in full, are available on the magnifymoney.com blog.  Ultimately the researchers explored the idea of a prenuptial agreement with expert Lauren Perez, a MagnifyMoney deposits writer, who said, "prenups can be a worthwhile conversation before getting married."

"Although taboo ... a prenup can help you protect your financial assets, including assets like inheritances and estates. It can also help ensure the financial situation for any dependents the couple might have."

Among those who were engaged, more than half of the survey's respondents said they were at least considering getting one: 23% said they were getting one; 32% said they hadn’t decided yet; and 45% said they weren’t getting one.

A house, along with other major assets, should be included in the agreement, Perez pointed out.

Just in time for Valentine's Day, Perez offers insight on the role of money in romance and marriage—"Not talking about finances may work for some, but couples who don’t discuss finances likely have a tough road ahead," Perez said. “Relationships require honesty and candor, especially about money, and especially when those finances are coming together. With something as important as money, it pays to communicate and work together."

About Author: Christina Hughes Babb

Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. Contact Christina at christina.hughesbabb@thefivestar.com.
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