• by Jack Loechner , Staff Writer @mp_research, November 20, 2008

A study from the American Savings Education Council (ASEC) and AARP shows that 91% of young adults report having financial goals for themselves, only 53% report sticking to a monthly budget. And while 62% have given at least some thought to their own retirement, 61% feel their retirement savings is behind schedule. 42% of these young adults give themselves a grade of D or F to describe how well they are saving.

In total, nearly four in ten members of these younger generations report that they or their spouse have personally saved money for retirement, not including Social Security taxes or employer-provided money (38%). Gen Xers (45%) are far more likely than Gen Yers (27%) to have started saving for retirement.

Asked to define "financial security," the definitions include:

• 22% define financial security as being able to make ends meet and not living paycheck to paycheck
• 16% say that financial security means being able to simply live comfortably
• 6% equate being able to provide for one's family with financial security
• 19%feel that financial security means having enough money leftover to save for emergencies or for a rainy day
• 13% define financial security as being able to weather hard times and deal with the unexpected
• 9% young adults include being able to save for retirement, afford retirement, or maintain one's lifestyle in retirement as part of their definition
• 15% suggest that being financially secure means not having to worry about their finances
• 5% indicate that their definition includes leisure, entertainment or "fun."

57% of the respondents describe themselves as "financially independent." While 62% of the Gen Y'rs (ages 19 to 27) and 54% of Gen X'rs (28-39) feel financially independent,  Gen Y'rs (45%) are significantly more likely than Gen Xers (25%) to say that they have received financial support from family or friends in the past year. Apparently, concludes the report, that at different stages of life, being financially independent has different definitions.

Event Or Life Stage Marking The Start Of Financial Independence Among Financially Independent Individuals (% of respondents in each segment)
Segment	First job	High School Grad	Start of College	College Grad
Total	24%	23%	14%	10%
GenY	24	28	16	8
GenX	24	19	11	12
High School	23	42	5	1
Some College	23	16	25	6
Bachelors degree	30	8	12	30
Masters degree	16	6	13	20
Source: ASEC and AARP, March 2008

Four out of five young adults report having some type of non-mortgage debt. This includes 63% with credit card debt, 48% with car loans, 31% with student loans, and 27% with medical debt. However, more than three out of five describe their debt obligation as either a minor problem or not a problem at all.

Generation X and Y Internet User Debt(% of Respondents in each group)
	Generation X(age 28-39)	Generation Y(age 19-27)
Credit card	67%	57%
Car loan	52	42
Mortgage	49	17
Student loan	30	32
Medical	28	25
Home equity loan	16	4
Other	23	20
Source: AARP & ASEC, March 2008

Additional key findings in the study:

• 62% of young adults report they have given at least some thought to their own retirement. Only 9% report they have not thought about it at all
• These young Americans estimate that they will spend about 20 years in retirement 
• 58% of young adults think they will retire between the ages of 60 to 69
• 21% of Gen X'rs estimate they will retire between the ages of 70 to 79, whereas just 13% of Gen Y'rs believe they will retire in their seventies
• 38% of respondents in this study report that they (or their spouse) are personally saving money for retirement
• Overall, only 22% say they are very or somewhat confident that, when they retire, they will receive Social Security benefits comparable to what retirees receive today
• 28% are confident that Medicare will be able to deliver comparable benefits, while 72% are not
• 59% of young Americans are confident that, when they retire, they will have saved enough to afford a comfortable lifestyle in retirement including 11% who are very confident in their ability to do this
• Gen Y'rs (64%) express more confidence in being able to accumulate enough for a comfortable retirement than members of the older Gen X (54%)
• Young Americans, says the report, are more likely to say they know more about their iPod (40% very knowledgeable) than about how to file their taxes (26%), buy a home (21%), invest outside of the workplace (15%), and save for retirement (15%)
• 70% of young adults say parents are a major or minor source of financial advice,  and 36% say their parents are their primary source of such advice
• 69% cite the internet as a major or minor source of financial guidance but only 16% cite it as their primary source

The report concludes that "although clearly appreciative of whatever they have, their struggles... may be having an impact on their overall feelings of financial security. Just under half state that they feel "financially secure" (49%), which includes only 7% who feel very secure. In keeping with the trends observed, young people who have higher incomes, higher education, who work full time, and who consider themselves to be financially independent are more likely than their counterparts to feel they are currently secure financially.

Please visit the AARP here for access to the full report in PDF format with considerable more detail.