Gen Z and Millennials Lead Savings Goals, Surpassing Older Generations in 2025 Study

Core Insights - Younger generations, specifically Gen Z and Millennials, are demonstrating superior financial management by increasing their savings rates compared to older generations [2][5] Group 1: Savings Growth - A Santander Bank survey indicates that over half of Gen Z (58%) and Millennials (54%) reported an increase in their savings during the first half of 2025, surpassing Gen X (47%) and Baby Boomers (39%) [2] - Approximately 80% of Gen Z and Millennials prioritize growing their savings, with 69% of Gen Z and 62% of Millennials making lifestyle trade-offs to save more in the past three months [3] Group 2: Savings Accounts and Interest Rates - The majority of young savers keep their primary savings in lower-interest accounts, with 43% in traditional savings accounts and 31% in checking accounts; however, 38% of Gen Z savers with knowledge of their account rates earn more than a 3% annual percentage yield (APY) [3] - Interest in certificates of deposit (CDs) is high among younger savers, with over 60% of respondents expressing interest in opening a CD while interest rates are elevated, and 74% of Gen Z showing interest [4][5] Group 3: Financial Behavior and Goals - The survey highlights that having defined savings goals motivates individuals, with over 40% of respondents cutting spending or adhering to a budget in the first half of the year to enhance their savings [6]