Americans Prioritize Saving For This Above All Else (Including Retirement)

401k, retirement, financial confidence, savings
The temptation is real.

Wanderlust is strong among Americans, so much so more people are saving their money for travel than for any other purpose—even outranking those that are critical like emergencies and retirement.

According to SunTrust Banks’ latest National Financial Confidence Poll, 45 percent of respondents ranked travel as the number one reason for saving. Building up savings and putting aside money for retirement were the second and third most common priorities (37 percent and 30 percent, respectively).

An almost equal number of those surveyed indicated they are saving to buy a house (21 percent) or a car, truck or motorcycle (20 percent).

Somewhat surprisingly, the top reason for saving doesn’t vary by generation—the young and the old have the travel bug. However, Millennials are feeling it a little more severely. Almost half (47 percent) want to travel more than they want to save for anything else, compared to 38 percent of respondents from the Silent Generation.

Ironically, SunTrust noted in its report, “Although Americans are prioritizing travel savings, about one-third of those surveyed report regularly feeling stressed about money or finances.”

So stress is intensifying the desire to getaway, but taking a trip is likely to contribute to added financial hardship, which in turn will lead to more stress… yikes, America.

Unfortunately, vacationing doesn’t spawn financial confidence, SunTrust points out. And those who are financially confident are more likely to be happier, to give charitably and to experience satisfaction stemming from the freedom to make life choices—like the choice to travel.

“Those who report feeling less stress about money or finances have a higher financial confidence,” Keith Lerner, SunTrust managing director and chief market strategist, said in a statement.

“Mastering one’s finances is the key to financial confidence,” he added. “While income plays a part, living on a budget, managing debt, saving regularly—for both personal interests and emergencies—and planning for retirement are all key drivers of financial confidence.”

Jessa Claeys
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Jessa Claeys is a writer, editor and graphic designer.

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