Millennials and Saving Money: What the Data Really Shows

Across Europe, a large share of people still aren’t saving for retirement, and millennials are often, according to recent surveys in several countries, the generation most pessimistic about what they’ll actually receive from public pension systems. It isn’t a lack of awareness: saving has been structurally harder for this generation, and the data explains it better than any generational stereotype.

This guide covers who millennials actually are, why saving has been harder for them, what the latest data from Spain, France and Italy shows, how to build a realistic saving habit, where that money makes sense by time horizon, and the most common saving mistakes.

Who millennials are

The most widely used definition, from the Pew Research Center, places millennials as those born between 1981 and 1996, meaning ages 30 to 45 in 2026. Some national surveys use slightly different ranges, so it’s worth checking which definition a given study applies before comparing figures across sources.

This is the generation that entered the labour market during or right after the 2008 financial crisis, with high youth unemployment across much of southern Europe for several years, lower real entry-level wages than the generation before, and considerably delayed access to homeownership in most European housing markets.

Why saving has been structurally harder

Entering the workforce mid-crisis. Anyone who started working between 2008 and 2014 typically did so with depressed entry-level wages and more precarious contracts, an effect economic literature documents as persistent for years after labour market entry, not just a temporary dip.

Housing costs disproportionate to wages. Property prices have risen well above average wages across much of Europe over the past two decades, pushing back the average age of homeownership and diverting part of the budget previous generations put toward saving or mortgage repayment into rent instead.

More fragmented employment. Temporary contracts, platform work and more frequent job changes generate less predictable month-to-month income, making it harder to commit to fixed, recurring saving than for someone with a stable salary over decades.

What the latest data shows across Europe

In Spain, 49% don’t save for retirement at all, nine points above the European average, according to Insurance Europe’s fourth pan-European pensions survey, conducted July-August 2025 across more than 12,700 consumers in 12 countries. Among those who don’t save, 56% say they intend to eventually, though 30 points of that figure admit they simply can’t afford it right now and 18 points say they lack enough information about supplementary pension products.

In France, the 2025 edition of the Cercle des Épargnants / Ipsos barometer found 81% worried about the future of the pension system, and majorities believing it’s harder for young people today than 20 years ago to build savings (59%), think about retirement (66%), or become a homeowner (68%). At the same time, household savings reached a record 18.8% of disposable income in early 2025, though nearly 30% of French people report having no savings at all, a split between those who can save more than ever and those who can’t save anything.

In Italy, the 2025 Intesa Sanpaolo / Centro Einaudi savings survey found 58% of Italians saving, the highest share in 20 years, yet fewer than a quarter have taken out a supplementary pension scheme. A separate 2025 study from Changes Unipol’s GenerationShip observatory found 44% of under-35s earning less than €1,500 net a month, with 76% citing lack of economic stability as the main reason for delaying long-term life decisions, despite 78% recognising saving’s value as a security tool.

Taken together, these figures point to something different from the image of a carefree generation: most millennials across Europe are aware of the problem. The main obstacle is real financial capacity, not lack of interest or information.

How to build a realistic saving habit

The most commonly cited framework in financial education is the 50/30/20 rule: roughly 50% of net income to fixed costs (housing, utilities, food), 30% to variable spending and leisure, and 20% to saving and debt repayment. It isn’t a universal formula, and with low entry-level wages or high rents, that 50% fixed-cost share is often exceeded; in those cases, adjusting the saving percentage to what the budget genuinely allows is more useful than forcing a number that doesn’t fit.

What consistently works across behavioural finance studies is automating saving: setting up an automatic transfer the moment income arrives, before that money reaches the everyday spending account, cuts the chance of spending it far more than trying to save “whatever’s left” at month end, which is usually little or nothing.

Where to put that saving by time horizon

This isn’t personalised financial advice; these are general categories, not recommendations for your specific situation. For an emergency fund (money you need available within days, not months), the usual choice is an easily accessible savings account, even with modest returns: availability is the priority here, not yield. For medium-term goals (2-5 years, such as a home deposit), many financial education guides mention instruments with somewhat higher potential return but also more risk, and recommend researching thoroughly or consulting an adviser before deciding. For very long-term saving (retirement, a horizon of decades), pension plans and low-cost index funds are the instruments most cited in financial education literature for their simplicity and lower fees compared to more complex products, though each carries its own risk and tax treatment worth understanding before committing.

Most common saving mistakes for this generation

Waiting to have “enough” to start. Starting with €20 a month, automated, builds more habit and more accumulated saving over five years than waiting for the ideal moment that never arrives.

Not separating savings from everyday spending. If saved money sits in the same account as everyday spending, it’s far easier for it to dissolve into unplanned purchases.

Ignoring lifestyle inflation. Every pay rise that goes entirely into more spending, rather than being split between spending and saving, keeps saving capacity stagnant even as the salary rises.

Tools that make saving easier today

Automation is the most effective tool: scheduled transfers, round-up apps that automatically save the spare change from each purchase, or visual savings goals inside a banking or card issuer’s own app help maintain the habit without relying on willpower every month.

Bitsa’s savings service allows scheduling automatic contributions in cryptocurrency, on a daily, weekly, monthly or annual basis with a low minimum amount, which makes it easy to start without needing large sums. It’s worth being honest about what this is and isn’t: crypto saving is a high-risk diversification route because of the asset’s volatility, not a substitute for an emergency fund or a pension plan, and it’s best treated as a small part of a broader saving strategy, not its core. Also worth keeping business or personal saving budgets separated from everyday spending: a Bitsa prepaid card, alongside the virtual prepaid card and prepaid crypto cards for digital nomads guides, covers practical ways to keep that separation from day one.

Frequently asked questions about millennials and saving

What years define a millennial?

The most widely used definition, from the Pew Research Center, places millennials between 1981 and 1996. Some national surveys use slightly different ranges, so it’s worth checking each study’s definition before comparing figures.

Is it true that millennials don’t care about saving?

No, according to the most recent data. Most are aware of the problem and worried about not saving enough; the main obstacle is usually real financial capacity, not lack of interest or information.

How much should I save each month?

There’s no universal figure that fits every budget. The 50/30/20 rule is a common starting point, but with low entry-level wages or high rent, adjusting the percentage to what the budget genuinely allows makes more sense than forcing a number that doesn’t fit.

Is it better to save in an account or invest directly?

Depends on the time horizon and individual risk tolerance; this isn’t personalised financial advice. As a general guide, an emergency fund should sit in something liquid and accessible; very long-term saving can benefit from instruments with more growth potential, always understanding the risk involved.

Is crypto saving a good option for a millennial?

It can be a diversification route, but it’s high risk due to the asset’s volatility. It shouldn’t replace an emergency fund or be the basis of a retirement saving plan, at most a small part of a broader strategy.