A new survey found that younger millennials carry half the debts of their older peers showing differences in their habits, according to the PNC Financial Independence Survey.
According to the second PNC Financial Independence Survey, a study that identified attitudes and behaviors of those aged 20-29 and those with or without higher education about personal finances, younger millennials carry debts differently from their older peers.
The study was conducted online within the United States from June 7 to June 24, 2013 among a nationwide cross section of 3,288 participants. It found that younger set of respondents carried just half ($17,100) of debts, while their older peers carry $35,600. The study found that nearly one third of the younger set carried no debt whatsoever, compared to the older set.
Another major finding of the study is that among respondents with some level of college education, average reported debt came in at $31,800, which is 30 percent drop from $45,400 in 2011.
"Financial maturity in this generation has noticeably shifted," said Cary Guffey, CFP and financial advisor at PNC Wealth Management, in a press release. "Younger millennials just entered adulthood when the economy shifted downward and as a result, it's clear they've become more cautious by avoiding debt."
Debt categories also varied highly between the two groups. The older set reported double, triple and quadruple debt amounts when it comes to car loans, credit cards, and mortgages. The only time both groups are on equal levels of debt is when it comes to education, which both groups have loans.
In terms of saving patterns, the study found that younger millennials are more likely to save money than their older peers. Younger millennials are more likely to save 90 percent of the time, while the older group reported only 83 percent.
Millennials also hold ambitious goals when it comes to major life events that require future financing. Regardless of age 74 percent think they'll own a home before they reach the age of 35, while two-thirds of those surveyed think they could retire on or before they reach their mid- sixties. The other 62 percent claim to have considered starting a business.
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