Study: Almost half of Romanian millennials save up regularly

A total of 47.57% of the Romanian youth aged 18 to 38 (the Millenials) save up regularly, the Millennial Money Report drafted by fintech Revolut shows.

Still, 17.11% of the local millennials do not manage to save up anything.

At the same time, over 70% of the young Romanians said they are happy to manage their personal finances, while 61.45% worry about their financial future and find it difficult to save up regularly.

Most millennials use savings accounts (47.95%) or save up in cash (23. 22%), while those who chose options such as stocks, bonds or mutual funds do not exceed 6%.

Those who manage to save up do so for holidays (38.26%), to buy a home (22.27%) and for unforeseen expenses (10.67%). Over 6% save up to buy a car or various devices, while 5.68% save up monthly for their children.

The study showed that over 90.6% of those surveyed are concerned with saving for the retirement and would like to benefit from this facility, while 71.4% would like to receive from their employers advice and information about the pension and retirement benefits. Still, only 5% of the young save up for retirement.

On the other hand, the local millennials show an increased interest for real estate investments. Unlike their Western peers, 59% of the Romanian young would rather own their own home as opposed to renting, but owning a property remains a luxury for most of them. A total of 55.81% of the respondents say it is very difficult to buy a first home, while more than 60% encounter difficulties in obtaining a mortgage loan, a process that they describe as difficult and stressful. Almost 58% of those who want to own their own home plan to ask for a loan.

The residents of Braşov save up the most, with an average sum of EUR 108.69 per month, followed by Bucharest residents with some EUR 89.25 per month, Iaşi residents with EUR 86.59, and Cluj residents with EUR 83.31 per month.

The Millennial Money Report showed that Berlin residents are the Europeans who manage to save up most, with over EUR 291 monthly. They are followed by London residents with EUR 288 per month, and Copenhagen residents with EUR 266 monthly.

Bucharest residents manage to save less than the residents of Budapest, who put aside EUR 177.62 monthly and those in Sofia, with EUR 130.19 monthly.

The Revolut survey looked at the saving habits of youth in Romania and other European countries. It covered over 11,000 respondents, with 3,000 respondents in Romania.

(Photo courtesy of Revolut)