A majority of millennials feel behind financially and are not optimistic about their financial future, according to a new survey from Bank of America.
Why it matters: Millennials are nearly twice as likely as baby boomers to worry often about their finances. Homeownership tops the list of anxieties — 20% say not being able to afford a home is the top financial stressor.
Of millennials with savings, 32% are saving to buy a first or different home.
- Younger generations prioritize homeownership even more: 41% of Gen Z and 40% of younger millennials are saving to buy a home.
Yes, but: Debt is a big hurdle. Excluding home loans, 16% of millennials owe $50,000 or more. 42% say debt is keeping them from buying a first or nicer home.
That's forcing a practical mindset, per the survey.
- 82% would rather buy a smaller, more affordable home.
- Single millennials are more likely to choose to fund a down payment on a home (82%) over having their dream wedding (12%).
- When asked what they would be most likely to do with a $10,000 windfall, 40% would pay down debt, with 20% saying they'd put it toward a new home or invest in their current home.
One surprising thing: One-quarter of millennials have at least $100,000 in savings, which is a 16% increase from two years ago, per the survey.
Go deeper: Millennials are re-landscaping the housing market
