Unlike other generations, millennials are avoiding buying into the stock market even as it rebounds. Only 27 percent of 18- to 29-year-olds own shares outright or in funds, according to a Gallup poll taken April 3-6 of this year.
Some argue this means millennials are missing out on major financial gains, which ultimately puts their economic future on rocky footing.
On The Daily Circuit, Chris Farrell of Marketplace and Bloomberg Businessweek said millennials are actually making a lot of good financial decisions that will pay off in the long run.
4 reasons millennials are financially savvy
1. Millennials made "the single most important investment that they can make which is in their education."
"The debt you're talking about is an investment in education," Farrell said. "You can look at stocks, you can look at gold, you can look at real estate, and over the course of a lifetime the return on investment in your education dwarfs the historic return on investment on any of those assets."
2. They are saving better than baby boomers at that age.
Millennials grew up in the 401k era and many are automatically enrolled in retirement savings plans through their workplace.
3. They are holding off on buying houses.
Millennials are holding off on buying homes after observing parents and older friends stretch to buy a house and then lose their job. "What they've learned is that a home is a big asset, it's not that liquid, it's hard to get rid of, so you want to be a little more secure in your job, in your relationships and your community," Farrell said.
4. They are blending work and home life.
Millennials are thinking more about how to enjoy their 40-plus years in the workplace rather than working just for a nice retirement, Farrell said. They will likely redefine the purpose of the last third of life and avoid using savings to purchase expensive material items like previous generations.