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

Jan 19, 2024
Use this case study to learn the importance of smart saving

Although the times may have changed and there are many differences between the modern Millennials, 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're 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 don' always understand what it takes to achieve financial security and often find themselves facing challenges due to their lack of savings. This can include 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 – both financially and emotionally.


  • Less financial worries offer a more stress-free lifestyle when it comes to paying bills and having the money needed for financial obligations. 
  • Saving for retirement or a down payment on a home allows a Millennial to achieve financial goals 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're not financially prepared to pay for monthly expenses and necessities. 
  • Lack of savings means potentially postponing financial goals such as 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 potentially 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're unprepared.

Financial Info for Millennials on Saving and Spending

Learning to save now, even if it's a small amount, is a savvy move that will help secure your financial future. At Peach State, we offer easy ways for you to start saving now so you can achieve financial independence no matter what stage of saving you're in.

Our high dividend Term Share Certificates (or CDs) allow you to put your hard-earned money into a risk-free investment that will grow your savings. With terms between 6 months and 5 years, this can help you reach short- and long-term financial goals. A Money Market Account offers a high yield with convenient access and is a great option for emergency savings. Both saving options are secure, allow you to earn more than a regular savings account, and can be taken advantage of at anytime.   

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.

Encouraging Proactive Financial Planning

According to this 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. If you're looking for ways to add to or diversify your retirement savings, you should consider opening an Individual Retirement Account (IRA). Many people choose an IRA in addition to 401(k) plans offered by their employer to help their retirement savings grow. 

No matter your financial situation, it's important to start saving now. Here are some financial tips Millennials can use to start building their future.

Financial Tips for Millennials

  • Regardless of your current financial situation, make saving a life-long habit starting now. 
  • Make a budget and stick to it for financial success.
  • Take advantage of employer-sponsored 401(k) or 403(b) plans for tax advantages and other high 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.
  • Make owning a home a priority, as it's a solid investment in your future.
  • Seek financial assistance from professionals and use all the resources available to you to ensure a bright financial future.
  • Start planning and investing now to reap benefits in the future. It's crucial for your financial success throughout your lifetime. 

If you’re looking for trustworthy financial assistance to kickstart your savings goals, we can help! Whether you need a reliable checking account, savings account, or credit card to help keep your finances on track, contact Peach State today!

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