Gen Z and Millennials Outpace Older Generations in Savings Growth, Survey Shows

Younger Americans are defying stereotypes by growing their savings at a faster rate than older generations, according to a recent Santander Bank survey. More than half of Gen Z (58%) and Millennial (54%) respondents reported increased savings in the first half of 2025, compared to just 47% of Gen Xers and 39% of Baby Boomers.

The survey reveals a striking shift in financial priorities, with roughly 80% of younger respondents naming savings growth as their top objective. Nearly 70% of Gen Z and 62% of Millennials admitted making lifestyle trade-offs to boost their savings—a stark contrast to the avocado toast narrative that once dominated discussions about their spending habits.

High-yield savings instruments are gaining traction among younger investors. Seventy-four percent of Gen Z expressed interest in high-interest CDs while rates remain elevated. Yet most Americans still keep primary savings in low-yield accounts, with 43% using traditional savings accounts and 31% relying on checking accounts.