A sound financial health means having a good balance of expenditure, saving and investments for future goals. We conducted a survey to understand the patterns in saving behavior among millennials. The three key aspects studied are current saving rates, target saving rates and having specific financial goal.
Current Saving Rates (CSR)
CSR is defined as current monthly saving as percentage of salary. We asked the question “how much do you save monthly on average” across income, gender and age group to better understand CSR among millennials.
Chart 1: CSR with Age and Salary
We found that Millennial’s CSR decreases with age but increases with Salary. Increase CSR with salary looks intuitive but decrease in CSR with age is mainly due to marital status and improved lifestyle. Be responsible!
Chart 2: CSR with Marital Status and Gender
Surprisingly, Male’ CSR is more than Females and specifically for Unmarried ones. Another thing that is clear from above chart is that Males CSR goes down post marriage but it remain same for Females. Ladies buckle up!
Chart 3: CSR with Age and Gender
We also looked at impact of age on CSR for each gender and found that Males CSR goes down with age and match Female CSR post 30 years of age. Learn from Wisdom!
Goal Index (GI)
Goal Index is defined as percentage of people who save for specific goals. We asked ‘Do you save for any specific goals?’ across income, gender and age group to better understand GI among millennials.
Chart 4: GI with Age and Salary
We found that Millennial’s GI for 0-10 lac salary category is highest between 26-29 age group. This mainly pre and post marriage. While for 10-20 lac salary group its higher post 30 as they have higher ability to achieve short-term goals but they start thinking about longterm goals post 30. Think Longterm!
Chart 5: CSR with Age and Gender
We also looked at impact of age on GI for each gender. We found that Males think about goals as they get older. Whereas for Females their orientation towards Goals increase around marriage (short-term goals) and then goes down. Always Longterm!
Target Saving Rates (TSR)
TSR is defined as target monthly saving as percentage of salary. We asked ‘Do you know how much you should save every month?’ across income, gender and age group to better understand TSR among millennials.
Chart 6: CSR with Age and Gender
We also looked at impact of age on TSR for each gender and found that Females target saving goes down with age and Males it stabilises post 26. Start Saving Early!
Chart 6: Change is TSR with Goals
We have looked at difference in TSR and CSR with respect to Gaols. We found that respondents with Goals have TSR significantly higher than CSR than others. Have Goals!
So, Have goals and save more!