Nearly 30% of Millennials Are Saving More Money from Their Paychecks Due to COVID-19

Tuesday, October 20th, 2020

A survey of 502 Americans found that more than one-quarter of millennials (27%) are saving more money from their paychecks because of the coronavirus pandemic. The study was released today by The Manifest, a B2B news and how-to website.

In comparison, 41% of millennials are saving the exact same amount of money as they did before the coronavirus pandemic.

With student loan payments paused and nearly 40% of millennials moving back home as a result of the pandemic, millennials have been shifting where they spend their money to remain financially independent.

A bulk of their paychecks go toward housing, including utilities and rent (66%), education (9%), and health insurance (6%).

More Than 60% of Millennials Are Comfortable Creating Personal Budgets

Compared to other generations, millennials are the most confident when it comes to developing a personal budget. Sixty-four percent (64%) of millennials indicated they feel comfortable developing a personal budget. Meanwhile, 61% of baby boomers, 57% of Gen Xers, and 55% of Gen Z feel similarly.

Additionally, nearly 30% of millennials said they create a new budget once a month. They look to tools such as Excel (38%) and apps (20%) to create these personal budgets.  

Justine Goodiel, public relations coordinator at The Co-Op Agency, a boutique public relations agency in Los Angeles, swears by using a budgeting app.

"I track everything I spend. If my grandma gives me $5, I add it to my app," Goodiel said. "If I buy a slushie from 7/11 – in the app it goes."

Only 11% of Millennials Stay Within Their Budgets

Despite feeling comfortable creating a personal budget, only 11% of millennials admit to staying within their budgets.

A majority of millennials make up the gig economy. Nearly 50% of them made less than $50,000 in 2019, according to The Manifest's study.

The Manifest's 2020 Millennial Budgeting Habits Report included 502 people across the U.S.

Read the full report here: https://themanifest.com/accounting/budgeting-money-tips-for-millennials.

For questions about the survey, contact Abby Saldana at abby@clutch.co.