A recent study came out that said 30% of millennials prefer saving their money in cash form instead of investing. There are many ways that we can look at this, but I want to discuss the possible reason for that number and what this 30% should do going forward.
First hand experience:
This is the ten year anniversary of the financial crisis which means this age group was 10-27 years old during that time. I would bet the 30% with their savings in cash were 10-22 years old at the time. The reason I say that is they were a child who seen a parent lose their job, maybe a home or they were graduating from college with no job and student loan debt on their back. Either way that was a scary time that made them trust cash over everything else. They seen the United States as a place where good times could end and end in a bad way.
You are older now:
It is a new day and it is time for you to take control of your future and throw fear to the side. It is wise to have enough money in an emergency fund, but after that use your money to pay off debt and invest for the future. Take time to sit down and really look at how much you owe other people and start making plans to pay them back. Also look at how much money you are spending each month and see if anything can be cut back. You can use the extra money for paying debt or if you are debt free use the money to invest. To the 30% saving only in cash please understand what your parents and grandparents enjoy today like pensions, social security, medicare may not be there for you in the future so you have to prepare.
You will be fine:
Setting the foundation now will help you be more prepared for the next downturn. So time to take your head out the sand and be proactive about your future. Enough fear.