Younger generation not big on saving

According to research done by Fidelity, younger generations are less likely to save as much as their older counterparts. The Boston Globe reports that the research could reflect an increasing dependence on credit to make purchases when past generations would have saved enough to pay for them in full.

“Debt prevents saving in older generations as well, but it's especially a challenge for [Generations] X and Y," the Globe reports that Pamela Norley, executive vice president of Fidelity Consulting Group, said in a statement. "Our research revealed that younger generations are more likely to use credit than save for short-term purchases, which results in an ongoing struggle with debt management."

One relatively new issue to affect these generations is the high number of those still paying off student loans. These payments decrease the amount of money that members of these generations can save or put toward their big purchases. In turn, they must turn to credit to finance something they couldn’t save for.

The study also reports that concerns over money are the biggest worries facing these two generations. Money is not, however, the primary factor members of these generations consider when making choices about their careers.

As access to credit grows increasingly scarce, borrowing can become more expensive, especially for those who do not have the savings to make sizeable deposits on their purchases.