I am a member of Generation Y, also known as the Millennials (those born between 1980 and 1995, or thereabouts). By all estimates, Social Security funds will run out by 2037, a few years before I retire. Dire news, and you can bet I’m not the only one socking away the money.
According to a new study, Asian Americans are saving a bigger portion of their salary for retirement than any other group in the country. Asians put away 9.4% of their income in 2007, compared to 7.9% by whites, 6.3% by Hispanics and 6% by blacks. About three-quarters of Asians participate in their company’s 401(k) plans, same as whites, while just two-thirds of black and Hispanics take part.
When I was growing up, and even to this day, my parents urged my sister and me to save our money. My mom opened a savings account for me at a young age — when I didn’t even know the difference between savings and checking accounts. My parents, who are typical of many Chinese immigrants in that they worked at a Chinese restaurant (dad) and clothing sweatshop (mom), somehow scrimped together enough to buy a house, pay it off, and never make my sister and I feel like we lacked for anything. They set an amazing example for us.
I recently read a book, Rich Like Them by Ryan D’Agostino, in which people share their advice on how they became wealthy. One person said to start saving as early as possible. Simple, but isn’t it the truth?