The typical millennial has about $2,400 socked away in a savings account. But personal finance advisor Ramit Sethi says having savings is not the key to building wealth.
"One of the most surprising things that people don't realize about money is saving is not enough," Sethi, the best-selling author of "I Will Teach You to be Rich," tells CNBC Make It.
Millennials are actually pretty good at saving. Over 40 percent of them report setting aside money on a monthly basis, according to the Allianz Life Generations study.
And while savings accounts can be great for short-term goals, they're not ideal if you're putting money away for longer term goals, like retirement or a house. That's because, if your money is in a traditional savings account, you're probably earning less than inflation, which is how the price of everyday goods increases steadily over time. It's why something that cost $5 in 1980 usually costs just over $15 today.
"What they don't realize and what nobody really tells you is that money is invisibly losing value," Sethi says.