This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.
Get ready to be surprised.
Image source: Getty Images
From the start of 2022 to the end of it, inflation did nothing but soar. Granted, the rate of inflation wasn’t as high at the start of the year or the end as it was in the middle. But either way, a lot of consumers struggled to make ends meet in 2022. And many people were forced to resort to measures like racking up debt on their credit cards just to cover their essential bills.
But new data reveals that despite inflation, many people did manage to add money to their savings accounts in 2022. According to New York Life’s latest Wealth Watch survey, Americans saved $5,011 on average.
But one generation outdid the others in terms of savings. And you may be surprised by which one it is.
Millennials ruled in the savings department
In 2022, millennials saved an average of $6,043, which is more than what any other generation managed to save. Seeing as how millennials tend to have a reputation (at least one that’s played up by the media) of being bad at managing money (think choosing avocado toast over IRA account contributions), it may be surprising to learn that members of that generation saved the most. But lo and behold, the data speaks for itself.
Of course, if anything, this data should perhaps serve to debunk the whole “millennials are bad with money” myth. Let’s also remember that millennials are getting older. Some of them are now in their early 40s, which means they’re further along in their careers and, ideally, getting compensated more generously due to their experience. That could explain why they were able to save nicely last year at a time when living costs were so high.
Also, the pandemic may have actually helped millennials build up some cash reserves. A lot of people stopped doing things like traveling and going out to eat in 2020 and even 2021, and some of those habits may have lingered into 2022, thereby allowing millennials to boost their savings.
Of course, we don’t know exactly why millennials were able to save more than their younger and older counterparts in 2022. But either way, those who are sitting on an extra $6,043 are no doubt in a stronger position to do things like cover emergencies or meet major goals, like buy a home or put kids through college. So anyone who saved in the vicinity of $6,043 last year should be proud.
In fact, anyone who managed to save any money in 2022 really deserves a pat on the back. But this doesn’t mean you should get down on yourself if you didn’t manage to save. Inflation made saving money really, really difficult. But with any luck, consumers will get some relief in that regard this year — and make progress on their savings as a result.
Keep the momentum going
If you managed to add to your savings in 2022 and want to keep that up in 2023, one move to consider making is automating the process. Send a preset amount of money into savings every time you get a paycheck, whether it’s $20, $50, or $200. That way, you’ll be less likely to give into temptation to spend and more likely to meet your goals.
Alert: highest cash back card we’ve seen now has 0% intro APR until 2024
If you’re using the wrong credit or debit card, it could be costing you serious money. Our expert loves this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.
In fact, this card is so good that our expert even uses it personally. Click here to read our full review for free and apply in just 2 minutes.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
