Introduction

In 2025, the narrative around younger Americans and their finances is changing. A recent survey shows Gen Z and Millennials are saving more than older generations, reshaping long-standing perceptions about their financial habits. This trend reflects a broader push towards financial resilience and smart planning among younger demographics.

Key Findings: A New Savings Generation

According to a Santander Bank survey of 2,300 Americans:

• 58% of Gen Z and 54% of Millennials have increased their savings in 2025—compared to 47% of Gen X and just 39% of Baby Boomers.
  
  
• About 80% of younger respondents say growing their savings is their top financial priority.
  
  
• Many have made personal sacrifices—69% of Gen Z and 62% of Millennials report cutting back on lifestyle expenses to save more.
  
  
• While most are keeping funds in traditional or checking accounts, 74% of Gen Z express interest in opening certificates of deposit (CDs) to take advantage of high interest rates, even though only 8% currently hold one.
  
  
• Effective savings tools include setting defined goals, budgeting, and cutting discretionary spending, with over 40% citing these strategies as drivers of their savings growth. Investopedia
  
  

Why This Matters for Consumers

This shift among younger savers signals a more disciplined, goal-oriented approach to personal finance:

• A healthier financial future: Prioritizing savings builds a foundation for emergencies, investments, or key life milestones.
  
  
• Smart use of interest environments: With elevated interest rates, CDs and high-yield accounts present real earning opportunities—especially if younger generations act fast.
  
  
• Setting positive precedents: This generation is establishing strong habits early, potentially avoiding common financial pitfalls later in life.
  
  

What Financial Advisors Should Know

Advisors and bloggers can harness this trend to guide readers and clients proactively:

• Highlight savings tactics: Help clients create clear, actionable goals—like emergency funds, CDs, or short-term investment plans.
  
  
• Promote rate optimization: Encourage clients to seek higher-yield instruments while the favorable rate environment lasts.
  
  
• Leverage generational strengths: Emphasize how Gen Z and Millennials are turning constraints and ambitions into strategic financial action.
  
  
• Educate on savings strategies: Articulate how goal-setting, cutting expenses, and automation spur progress—even in modest increments.
  
  

Broader Financial Implications

This surge in savings among younger Americans is a bright spot amid economic uncertainty. It marks a long-term shift toward financial responsibility that can underpin future increases in investment, home buying, and economic stability.

How Consumers Can Keep Momentum Going

1. Set sharp savings goals (e.g., three-month emergency fund or CD deposit).
   
   
2. Explore high-yield options—especially CDs—before rates begin to drop.
   
   
3. Stay disciplined with budgets—automate savings if possible.
   
   
4. Track priorities: Regularly re-evaluate goals as life circumstances change.
   
   

Celebrate progress: Even small increases matter—reinforce positive habits.