How Are Young People Saving Money?

If you’re under 40 and still have lingering concerns about your financial future, you have company. Millennials were among the groups whose wages were most likely to go up in recent years. But inflation has continued in some areas, and young adults have persistent concerns about being able to pay off their debts, buy a home, or afford retirement.

So, what is a young person to do? There are many possible answers, but finding new ways to save seems to be at the top of many people’s list.

Hard-to-Pay-Off College Loans

Recent reports show that debts for young people in particular have gone up significantly in recent years. One reason is that college loans are simply higher and therefore harder to pay off than they were in recent history. Having a formal education does make better salaries possible. But facing high monthly loan payments is one more thing that didn’t affect older generations the way it affects young people today.

That is one of multiple reasons that many people have gotten creative when it comes to finding new ways to save a little cash where they can.

Convenient, Local Financial Services for People Who Lack Funds

Taking advantage of the many convenient financial services at Currency Exchanges can take a bite out of money stress for folks who lack bank accounts or need a faster way to cash their paychecks.

And when it comes to saving, here are three popular steps young people are taking to help make ends meet:

1. Thrifty Habits Like Second-Hand Shopping, Clothing Swaps and Upcycling

The truth is, people of all ages have been thrifty over the years to spend less and save more. These days, one of the biggest youth fashion trends by far is the use of second-hand clothing. How about a “clothing swap,” where you and your friends get together and exchange used clothing for something new to you?

Whatever the trend, if it’s “green” it will appeal to people of all ages, but especially to youth. Examples of this include buying brands that reuse materials and using found objects as a part of your home decor. Teen Vogue explains that, whereas recycling can still expend a lot of energy, upcycling involves “mending or upgrading an existing object.

2. Green Transportation Trends Like eBikes and eScooters in Cities Like Chicago

Many reports have shown that young adults are showing less interest in learning to drive – or if they do learn, in buying cars. Part of this is because more are working remotely, and are comfortable doing so. They are also more likely to be concerned about the environment than older folks. Cities like Chicago have responded with eBikes and scooter sharing programs for those who still commute, in addition to making Ventra more user-friendly.

3. Renting Apartments with Roommates or Living with Family

Having roommates has always been the norm for people who move out of their parents’ home for the first time. And there are many benefits to doing so. Shared utility bills is perhaps the biggest advantage from a financial standpoint. But always having someone to talk to can also be a comfort, even if you don’t socialize much outside of the home. This trend may provide other ways to save money, such as spending less on shared streaming services, furniture and household goods.

Sometimes roommates also happen to be relatives. According to CNBC, nearly a third of gen Zers live with their parents. No matter who you see in the kitchen each morning, having roomies sure beats loneliness, and it can be a great way to save your dollars as you map out your future.

Currency Exchanges Throughout Illinois Help People of All Ages

Try not to get discouraged as you look for new ways to save while seeking better opportunities in work and in life, particularly if retirement is a long way off. Being smart with your spending can be a better sign of financial wisdom than making a ton of dough.

It’s also important to use reliable financial services when you need them, whether that means:

  1. Staying on top of car-related tasks
  2. Keeping up with your bills and avoiding late fees
  3. Cashing each check as soon as possible
  4. Using prepaid alternatives to credit cards when you go out

Visit the closest Community Currency Exchange (CCEA) for services to help you stay on track financially. Check out CCEA online for more helpful financial advice today!

A woman sitting outside next to an electric bike.

With over 350 locations, many open nights, weekends, and holidays (and several stores with 24/7 availability), you can rest easy knowing your financial needs can be taken care of when you need them most. We’re in the heart of every community. Don’t believe us? See for yourself.