Financial advisors warn young adults about risks of holding too much cash in savings

Many young people are keeping too much cash in savings accounts, with a study showing that those in their 20s hold about 28% of their wealth in cash. Financial advisors warn this can lead to lost value due to inflation. Experts suggest that having excess cash may indicate a lack of financial goals. They recommend setting clear priorities and investing funds according to short-term and long-term objectives, such as retirement or emergency savings. Holding cash can also mean missing investment opportunities. Financial planners advise using excess cash to max out retirement accounts or invest in low-risk securities, which can help offset taxes and protect against inflation.