What are Millennials most likely to save for?

Photo (c) grgroup - Fotolia

Study sheds light on the savings goals of Millennials and Gen Xers

When it comes to savings, the priorities of Gen Xers and Millennials are more alike than you’d think. A new survey by online loan marketplace LendingTree showed that members of both generations agree that saving for an emergency fund should be a top priority.

Millennials choose to sock away money in an effort to save for the following ten things, according to the survey:

  • Emergency fund (14.86%)
  • A house or an apartment (12.50%)
  • Vacation (8.44%)
  • New computer (6.72%)
  • Retirement (6.44%)
  • Travel abroad (6.06%)
  • New car (5.81%)
  • Clothing, accessories, or shoes (5.11%)
  • Holiday gifts (4.72%)
  • Education (4.36%)

Gen Xers prioritize retirement savings

In contrast, Gen Xers were much more likely to make saving for retirement a top priority. Almost 11% percent of Gen Xers said their second priority for saving was retirement, but only 6.44% of Millennials ranked saving for retirement as one of their top ten priorities for saving.

And while many of the 2,000 Millennials who responded to LendingTree's survey were still saving for a home or an apartment, Gen Xers seem to be more focused on saving money to fix up the residence they're currently in. 

Around 8% of Gen Xers said saving for home repairs or improvements was a top priority. Home repairs or improvements didn't crack the top ten savings priorities for Millennials.

Other prominent priorities

However, both generations agreed on the importance of saving money for an emergency, such as an unexpected car repair or trip to the hospital. Nearly 15% of Millennials and 16.11% of Gen Xers said saving for an emergency fund was their top saving priority.

Young people and Gen Xers may also be on the same page regarding vacations. In the survey, around 8% of Millennials and 10% of Gen Xers said they were saving for their next vacation.

Other popular purchases to save for included:

  • A new car -- almost 6% of Millennials and nearly 8% of Gen Xers
  • A new computer -- almost 7% of Millennials and about 5% of Gen Xers
  • Holiday gifts -- roughly 5% for both generations

Could your debt be reduced or forgiven? Take our financial relief quiz.