Zoomers set aside more compared to millennials

Jun 26, 2020

June 26, 2020, Moscow — Despite the widely spread belief that young people don’t take personal finances seriously enough, Y and Z generations have turned out to be prone to saving money. As much as 52% of millennials and 67% of zoomers claim they try to save up regularly or occasionally.

Sberbank Asset Management and Sberbank life insurance have carried out a study about savings in 37 cities of Russia with 500,000+ residents each ahead of the Young People’s Day celebrated in Russia. The companies regarded people aged 18 to 23 as Generation Z or zoomers and those aged 24 to 40 were viewed as Generation Y or millennials.

When asked “How often do you manage to set money aside?” as much as 52% of millennials said they try to do it once a month and 47% answered they strive to set something aside several times a year. Among the Generation Z respondents, the figures stood at 66% and 33%, respectively. Most of the millennials and zoomers saving up money live in Moscow, St. Petersburg, and Tyumen.

When asked about the purpose of the savings, most millennials said they save up to support their kids (35%) or to travel (25%). Zoomers mostly save money to buy a condo (44%), build up an emergency fund (20%), or have leisure and travel purposes in mind (17%).

Generation Z prefers saving cash (58%). Ruble-denominated savings deposits are popular among 10% of zoomers and 39% of millennials. Generation Z and Y are somewhat equal when it comes to securities investments, with 9% and 10% interested in this, respectively.

When zoomers seek to invest their money, instead of just keeping spare cash, they are ready to inject funds in stock market instruments for 30 months. Millennials are ready to invest in instruments maturing in 18 months. The proportion of zoomers and millennials welcoming online investment is equal (11%).

Millennials are more inclined to save automatically as every fifth said it would be convenient to have money debited from a payroll account to a savings account automatically. Among the zoomers, many of whom do not have a permanent job or a payroll card yet, this solution is less popular (12%). As to the convenience of savings, both generations agree that it is vital to set money aside often, but in small amounts.

Igor Mamontov, Vice President, Director of Payments and Transfers, Sberbank,

“The number of young customers is steadily climbing across all investment and savings products of the Sberbank Wealth Management Block. Over the past year, the share of Sberbank life insurance customers choosing insurance savings plans aged 18–25 years has increased to 5%. Customers aged 18 to 25 have invested in mutual funds and individual investment accounts of Sberbank Asset Management about RUB1 bln in 2020, which is almost three times as much as in 2019. Our young customers choose the online channel: 80% of investors aged 18–25 years invested in mutual funds remotely.”

Appendix

Respondents trying to save up (“try to set aside regularly” and “save from time to time”)

Zoomers

St. Petersburg

86%

Tyumen

86%

Moscow

85%

Rostov-on-Don

84%

Yekaterinburg

83%

Nizhny Novgorod

82%

Ryazan

81%

Yaroslavl

80%

Krasnodar

77%

Lipetsk

77%

Voronezh

76%

Volgograd

76%

Perm

70%

Saratov

68%

Omsk

68%

Chelyabinsk

67%

Ulyanovsk

67%

Samara

67%

Ufa

66%

Tolyatti

65%

Astrakhan

64%

Barnaul

64%

Krasnoyarsk

62%

Vladivostok

62%

Kazan

62%

Novosibirsk

61%

Khabarovsk

60%

Izhevsk

59%

Kirov

57%

Irkutsk

57%

Orenburg

57%

Kemerovo

57%

Naberezhnye Chelny

57%

Novokuznetsk

55%

Tomsk

54%

Penza

53%

Makhachkala

49%

Millennials

Moscow

69%

St. Petersburg

66%

Tyumen

66%

Rostov-on-Don

65%

Nizhny Novgorod

64%

Yaroslavl

63%

Ryazan

62%

Yekaterinburg

61%

Krasnodar

59%

Novosibirsk

59%

Astrakhan

58%

Ulyanovsk

58%

Volgograd

57%

Voronezh

57%

Vladivostok

56%

Lipetsk

56%

Saratov

56%

Chelyabinsk

56%

Kemerovo

55%

Tolyatti

55%

Kirov

54%

Perm

54%

Khabarovsk

54%

Barnaul

53%

Irkutsk

53%

Omsk

53%

Orenburg

53%

Izhevsk

52%

Krasnoyarsk

52%

Penza

52%

Ufa

52%

Tomsk

51%

Kazan

50%

Naberezhnye Chelny

50%

Samara

50%

Novokuznetsk

49%

Makhachkala

48%