A Tale of Two Millennials: The Impact of Saving vs. Not Saving

Jan 18, 2024
See how different financial choices can affect a millennials long term goals and other tips

Although the times may have changed and there are many differences between the modern Millennial, Gen Xers, and boomers; saving and preparing for the future is still important for a stable and secure financial situation for everyone. In fact, the impact of saving vs. not saving for a Millennial is tremendous and can be life-changing, as shown by the comparison here of each chosen pathway: the saver and the non-saver.


Millennial One: The Saver

The first type of Millennial is a planner who prioritizes saving early in their career. This savvy saver makes it a point to stick to their monthly budget, sets up regular contributions to savings accounts, and seeks out investments to secure their financial future. They understand the importance of saving and investing now while they are young and will reap the benefits of their savings habit by being able to invest in a home at a younger age and will have financial security during unexpected life events.


Millennial Two: The Non-Saver

The second type of Millennial is a non-saver who prioritizes buying things over saving money. The Millennial spender would rather take vacations, buy nice cars, and spend their money for immediate gratification rather than plan for their future. They often feel that they work hard for their money and should be able to have the things they want as soon as possible. Unfortunately, these spenders do not understand what it takes for financial security and often find themselves facing challenges due to their lack of savings, including the delay of major life events like buying a home and difficulty in handling unexpected emergencies due to lack of planning.

Comparative Analysis

The choices of savers and non-savers definitely have an impact on the lifestyle, opportunities, and stress levels of the average Millennial. Those who are savers will find themselves in a better situation – financially and emotionally, while non-savers will likely be stressed out and living paycheck to paycheck.


  • No money worries offer a much more stress-free lifestyle when it comes to paying bills and having the money needed for financial obligations. 
  • Saving for a down payment allows a Millennial to buy a home sooner, which is a Savers great investment that helps build wealth.
  • Building a nest egg is crucial in the event of unexpected emergencies such as loss of employment, medical issues, or other unforeseen life issues.



  • Life is stressful when you are not financially prepared to pay for monthly expenses and necessities. 
  • Lack of savings means postponing a home purchase that can build equity and offer financial freedom in later years.
  • Not having money to fall back on in case of emergencies or other unexpected issues due to unsavvy spending habits can wreak havoc on your financial future and the happiness of your family. 

Long-Term Consequences

Planning and saving now can help avoid long-term consequences that can affect many aspects of your life in the future. Those who save and plan at an early age can expect to be ready for retirement, have financial independence later in life, and offer security for themselves and their family.

Unfortunately, the long-term impact of not saving offers no preparation for retirement, a lack of financial independence, and puts you and your family at financial risk in the event of an emergency or life event for which you are unprepared.

Lessons Learned

Learning to save now, even if it is a small amount, is a savvy move that will help secure your financial future. Being unprepared for life’s unexpected curveballs is stressful and can be avoided by preparing now. A smart Millennial who saves now is setting themselves up for a more enjoyable and stress-free lifestyle where they can afford what they need and want.

Advice for Millennials for Saving and Spending 

  • Make saving a life-long habit starting now.
  • Make a budget and stick to it for financial success.
  • Plan for major purchases and delay instant gratification until you have the necessary funds.
  • Invest now to reap the benefits in the future.

Encouraging Proactive Financial Planning

According to a report by the National Institute of Retirement Security, about 66% of working Millennials have not started saving at all, with only 5% of Millennials saving adequately for their future. 

No matter your financial situation, it is important to start saving now. Here are some financial tips for Millennials to start building for the future:

Financial Tips for Millennials

  • Regardless of your current financial situation, start saving now. Even just $50 a month in an account earning 6.5% interest adds up to over $226k over 50 years!
  • Make owning a home a priority, as it is a solid investment in your future.
    Take advantage of employer-sponsored 401(k) or 403(b) plans for tax advantages and huge interest dividends.
  • Be savvy when it comes to large purchases like vehicles and understand how automobiles depreciate, unlike buying a home or land which will only grow in value over the years.
  • Seek financial advice from professionals and use all the resources available to you to ensure a bright financial future.
  • Planning now for your future is crucial for your financial success throughout your lifetime. Now is the time to get motivated and start saving. 

If you are looking for trustworthy financial advice, a reliable checking account, savings account, or credit card to help you succeed, contact us today.