What Generation Y Should Do Now to Save More Money

This is part 2/3 on our series about Generation Y and retirement, click here for part 1.

May 29, 2013

By Annie Cromwell, America Saves Communications Associate

As I mentioned in my last post, Americans ages 18 – 65+ name “not having enough money for retirement” their top financial concern. Many Generation Y workers may believe that saving small amounts for retirement right now is not important enough to warrant skimping and saving on their present day-to-day needs; since many are busy paying off student loans and saving up for more immediate purchases like cars or houses.

Although retirement can seem like an eternity away when you've only just entered the job market, it’s important not to neglect your retirement savings. Know that it's okay to start small, and that saving even the smallest amount every paycheck is better than saving nothing at all. If you free up some funds in your budget, and make a plan to increase savings as time goes on and your salary increases, you can look forward to a very comfortable retirement!

These tips will help free up some funds in your budget, and allow you to reallocate money to your retirement fund.

Purchase fewer luxuries Ask yourself, “is the most recent smart phone that much different than the one I already have?” If you’re really honest with yourself, you’ll probably realize that it’s not. Keep the electronics/car upgrades and designer purchases to a minimum. And, if there is something that you really want, take 24 hours to consider if you really have the funds for this purchase. It will help you avoid impulse spending.

Next post, we will discuss more retirement-prep advice for Generation Y workers. In the meantime, is your goal to save for retirement? Take the America Saves Pledge today.

More Articles from America Saves: