No More Avocado Toast? Gen Z and Millennials Have Saved More Than Older Generations in 2025, Study Reveals

Move over, boomers—the avocado toast generation just flipped the script on retirement savings.

The Savings Revolution

Gen Z and millennials aren't just scrolling through TikTok—they're stacking digital assets and traditional savings at rates that shame their elders. Forget the tired stereotypes about frivolous spending; these cohorts have mastered the art of compound growth while older generations still debate CD rates.

Digital-First Strategy

They bypass traditional banking bottlenecks, allocating portions of their portfolios to crypto assets and decentralized finance protocols. While Wall Street analysts were busy downgrading tech stocks, these investors quietly accumulated positions during market dips—because apparently, you can indeed buy both avocado toast and financial independence.

The Ironic Twist

Here's the kicker: the same generations that got lectured about $7 breakfasts now hold more liquid assets than their parents did at the same age. Maybe those fintech apps actually work better than unsolicited advice from relatives who still balance checkbooks by hand.

Of course, this all assumes the study didn't accidentally count unused Uber credits as 'savings'—but hey, in this economy, we take wins where we can get them.

Key Takeaways

• Younger Americans grew their savings more in the first half of this year than older generations, a Santander Bank survey found.
• More than half of Gen Z and Millennial respondents said their savings increased during the first half of the year.
• High-interest CDs are on Gen Z's radar, with 74% expressing interest while rates are elevated.

After years of hand-wringing and criticism about spending on items such as avocado toast and expensive coffee, younger Americans are outpacing older generations in terms of their savings rates.

In a survey released last week by Santander Bank, more than half of Gen Z and Millennial respondents reported growing their savings this year, at 58% and 54%, respectively, compared with 47% of Gen Xers and 39% of Baby Boomers.

Most Young People Call Savings a Top Financial Priority

Roughly 80% of Gen Z and Millennials said growing savings is their top financial priority. In addition, 69% of Gen Z and 62% of Millennials said they have "made lifestyle trade-offs in the past three months to save more."

In a representative survey of 2,300 Americans, most said their primary savings are in a lower-interest account. 43% keep their primary savings in a traditional savings account, while 31% use a checking account. Among Gen Z savers who know the rate on their primary savings account, 38% said they earn more than a 3% annual percentage yield (APY).

“It’s encouraging to see younger consumers embracing the importance of saving,” said Swati Bhatia, Santander's head of retail banking. “They are showing real determination as they find ways to cut spending and build savings, even in a challenging environment."

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Younger Savers Showing Interest in CDs While Rates Are High, Others Budget and Cut Spending

Just over 60% of respondents said they're interested in opening a certificate of deposit (CD) while interest rates remain elevated. Among Gen Z, 74% expressed interest in opening one soon, while just 8% already have one.

Bhatia said the current high-rate environment is an "opportune time" for young people "to consider opening a CD to make the interest rate environment work for them," noting it's not surprising that younger investors aren't as familiar with CDs, given how low rates have been for much of their lives.

The survey also found that having defined savings goals can help motivate people to follow through on those plans, with more than 40% each saying they cut spending or stuck to a budget in the first half of the year to grow their savings.

The Bottom Line

Despite years of criticism about frivolous spending habits, Gen Z and Millennials are proving their financial savvy by outpacing older generations in savings growth during the first half of 2025. With more than half of younger Americans successfully growing their savings compared with less than half of Gen Xers and Baby Boomers, these generations are demonstrating that they can prioritize financial security when it matters.