Core Insights - Millennials, defined as individuals born between 1981 and 1996, will be in their 30s or 40s by January 2026, highlighting the importance of financial planning for this demographic [1] Financial Habits for Millennials - It is crucial for millennials to save or invest any extra income, as lifestyle inflation often accompanies pay increases. Redirecting 30% to 50% of income increases towards savings or investments can help in achieving long-term financial goals [4][5] - The average year-end bonus for individuals is between 2.4% and 2.9% of total annual compensation, which can provide a significant boost to savings or investments. For example, someone earning $80,000 could receive an additional $1,920 to $2,320 [6] Emergency Preparedness - Establishing an emergency fund is essential for millennials to manage unexpected expenses, regardless of income level or insurance coverage. This proactive measure can help mitigate broader financial crises [7][8] Long-Term Investment Focus - While there is a temptation to engage in new or alternative investments, maintaining a focus on long-term planning and traditional investing remains vital for financial stability [8]

Financial Behavior - Good money habits developed during lean times are often abandoned when income increases [1] - The report explores the reasons behind this shift in financial behavior [1]

The good money habits we hone when times are lean often get abandoned when we start earning more. Why is that? https://t.co/IIMWynHKgJ ...

The quieter your money habits,the louder your results. ...

Group 1 - The question "What's my number?" is crucial for retirees as it guides their retirement planning and expectations for post-retirement life [1] - Poor financial habits can significantly impact retirement savings, making it essential for retirees to avoid certain practices [2] Group 2 - High-interest credit card debt is a major concern for retirees, with nearly 70% of those with debt reporting outstanding credit card balances, highlighting the need for debt elimination [3] - Retirees are advised to focus on paying down high-interest debt before or during retirement, considering strategies like low-interest balance transfers or debt consolidation [4] Group 3 - Social Security benefits are a vital income source for retirees, constituting about 30% of income for individuals over 65, with the recommendation to delay claiming benefits to maximize payments [4][5] - Claiming Social Security benefits early can lead to a reduction of at least 25% in payments, making it important for retirees to understand the trade-offs involved [5] Group 4 - Healthcare costs represent a significant financial burden for retirees, with a 65-year-old retiring in 2025 expected to spend $172,500 on healthcare expenses [6] - Medical expenses typically increase with age, and retirees are advised to include healthcare costs in their retirement budgeting to avoid depleting savings too quickly [7]