A recent study by Bank of America/USA TODAY entitled Better Money Habits Millennial Report found that 18-34 year olds, even with the best of intentions to save money, are living paycheck to paycheck (53%) with almost a quarter admitting that they have not started saving at all.  Despite this they believe (80%) that financially they will be better off or the same as their parents even though they acknowledge that at this point in their lives it is very difficult for young adults to live within the confines of their salaries.

 The recent job market has not been kind to the young and many of their attitudes about employment, savings and spending were formed during a time of deep economic trouble.

According to the report, millennials worry about their financial situation and see themselves as very responsible in their approach to money.  They try to pay off their credit cards in full every month but a little less than half are still stressed about being able to save enough each month.

Savings are a Challenge

We hear a great deal about student loans and it turns out that about a third of millennials are facing this type of debt.  Strapped with these payments it becomes much harder to save so it is little surprise that 37% of the young people surveyed had savings of less than $5,000.  The report suggests that those who set realistic savings goals are better able to achieve their savings goals.  Few were saving for retirement, as most were more focused on shorter term savings goals.

Parents are a Help

Despite headlines to the contrary, most millennials do not live at home, yet more than a third are still receiving some financial help from their parents in the form of help with rent, loan payments, cell phone bills or other monthly expenses.

Even those with jobs can find that their employment is part-time or their benefits inadequate. Three-quarters of those receiving help from their parents planned to be on their own in the next four years.  Young adults credit their parents with teaching them about money and good spending habits and nearly half wish their parents had spoken to them about money earlier.

Adulthood is Not About Buying Things

Some of the well-established signposts of adulthood simply are not a concern for millennials.  When asked about buying a house or starting a family almost 60% said they are not worried about such things.  In keeping with the younger generations interest in experience over acquiring possessions most felt that they will have “made it” when they were able to afford things like travel and treating friends and family as opposed to building themselves a home.  The survey showed that just as many millennials are saving for a house as are saving to take a vacation.

Idealistic in Their Lives and with Their Money
Millennials care about the job they do, not simply the incomes they reap, and this influences their approach to money. “the report found that respondents have a hopeful, if not slightly idealist, view of their futures; only four in 10 believe that salary is more important than doing what you love.”  Only 24% described rising to the top of their profession as having “made it”, while 40% defined a career that helps other as success.  "You see a lot of this values-based decision making in terms of career and where they want to work and meaning in their life," says Andrew Plepler, head of global corporate social responsibility at Bank of America. "And that means that they're making decisions not just based on finances."