Study Reveals Gen Z and Millennials Surpass Older Generations in Savings Goals for 2025
- Younger Americans outpaced older generations in savings growth during the first half of 2025, according to a Santander Bank survey.
- Over 50% of Gen Z and Millennial respondents reported an increase in savings—compared to less than half of Gen Xers and Boomers.
- With interest rates elevated, 74% of Gen Z expressed interest in opening high-yield CDs, signaling a shift toward more strategic saving.
Key Takeaways
Younger Generations Defy Stereotypes with Stronger Saving Habits
After years of criticism over spending on avocado toast and premium coffee, younger Americans are flipping the narrative. Gen Z and Millennials are now saving at higher rates than older generations.
According to a recent Santander Bank survey, 58% of Gen Zers and 54% of Millennials reported growing their savings in the first half of 2025 compared to 47% of Gen Xers and just 39% of Baby Boomers.
Most Young Adults Say Saving Is Their Top Financial Goal
Nearly 80% of Gen Z and Millennials rank growing savings as their number one financial priority. And they’re backing it up with action: 69% of Gen Z and 62% of Millennials say they’ve made lifestyle trade-offs in the past three months to save more.
In a national survey of 2,300 Americans, most respondents keep their savings in low-interest accounts with 43% using traditional savings and 31% relying on checking accounts. Among Gen Zers who know their rate, 38% report earning over 3% APY, signaling growing interest in high-yield options.
“Younger consumers are showing real determination,” said Swati Bhatia, Santander’s head of retail banking. “They’re cutting spending and building savings even in a tough environment”.
Gen Z Eyes CDs as Rates Stay High—Budgeting and Goal Setting Drive Momentum
With interest rates elevated, over 60% of Americans say they’re considering a certificate of deposit (CD) and 74% of Gen Z is especially eager to open one soon. Yet only 8% currently hold a CD, reflecting limited exposure to these tools during years of low returns.
“This is an opportune time for younger savers to make the rate environment work for them,” says Swati Bhatia, Santander’s head of retail banking. She notes that many Gen Zers are just now discovering CDs as viable savings vehicles.
The survey also revealed that clear savings goals drive action: more than 40% of respondents said they’ve cut spending or stuck to a budget in the first half of 2025 to grow their savings.
The Bottom Line
Despite years of scrutiny over spending habits, Gen Z and Millennials are proving their financial discipline. In the first half of 2025, over half of younger Americans grew their savings outpacing Gen X and Baby Boomers, who lagged behind.
This shift signals a clear priority: financial security matters, and younger generations are stepping up with intentional saving strategies that reflect both resilience and long-term thinking.
