Stereotypes aside, when it comes to saving and financial habits, a new study contends that Millennials are “getting it right.”

Now the largest cohort of working Americans, one in four Millennials (defined as ages 24-41) state that they have saved at least $100,000 – up from 16% in 2018, according to Bank of America’s “Better Money Habits Millennial Report.”

In addition, nearly three out of four (73%) Millennials report that they are saving for life milestones and future goals, a 10-percentage point increase from 2018. Three-quarters are saving for retirement, while 51% are building an emergency fund and 42% are saving to travel. Millennials are also boosting their credit scores (39%) and putting away more for retirement (24%).

Millennials who are saving for retirement, on average, started saving at age 24 – earlier than Gen X (30 years old) and Baby Boomers (33 years old).

However, the study also found that 27% of Millennials are not saving at all. And more than three-quarters are weighed down by debt, with one in six Millennials owing $50,000 or more, excluding home loans. Of those Millennials carrying debt, 76% say they can’t achieve their personal and financial goals because of it, including buying a first or nicer home (42%), saving for the future (40%) and starting or growing a family (21%).

“Whether age 24 or 41, Millennials are facing a difficult financial balancing act as they juggle near-term priorities and future goals,” notes Andrew Plepler, global head of Environmental, Social and Governance at Bank of America. “Older Millennials are more secure when it comes to their savings, but many others across this broad age-range still struggle to save at all.”

Falling Behind?

Meanwhile, despite reported financial successes, Millennials still think they’re falling behind. More than half (51%) say they feel behind financially compared to where they thought they would be. This includes 39% of respondents with household incomes of $100,000 or more.

What’s more, 73% are not optimistic about their financial future and 33% worry often about their finances, up from 25% in 2018. The study further shows that, to feel financially secure, 26% say they need $1 million or more – which jumps to 36% for Millennials with household incomes of $100,000 or more.

Millennials further report, however, that they are willing to make trade-offs to stay on track. Nearly all (90%) are willing to make sacrifices to achieve a financial goal – ranging from cutting back on dining out (70%) to staying in the workforce longer (32%).

“Overall, we’ve seen that Millennials are being practical and reserved when facing these choices – perhaps a product of coming of age in the Great Recession. And, in general, their financial habits and prospects continue to improve,” Plepler further states in the report.

Ipsos conducted the online survey on behalf of Bank of America Sept. 12-22, 2019, polling 1,903 respondents between ages 18 and 73. For purposes of the report, Millennials were defined as ages 24-41, Generation X as ages 42-54 and Baby Boomers as ages 55-73. Millennials were defined as ages 18-34 In the 2014 and 2015 reports, and as ages 23-37 in the 2017 and 2018 reports.