Millennials, the generation born between 1981 and 1996, have been the subject of many headlines over the years. The media in the past dubbed them "the avocado toast generation" for their spending habits, but how much is the average millennial actually worth? With the oldest of millennials now past the age of 40, things have changed since the 2008 financial crisis and COVID-19.
Millennials' net worth doubles
The U.S. economy has been fundamentally transformed by the COVID-19 pandemic in recent years. By providing significant government relief and lowering interest rates, households have been able to accumulate wealth despite the impact of inflation. In fact, the net worth of U.S. households rose by 40% from $103.99 trillion in Q1 2020 to $141.10 trillion in Q1 2022.
Millennials have also experienced significant financial benefits as a result of the pandemic, with their net worth more than doubling. According to MagnifyMoney's latest study, the average net worth of millennials surged to $127,793 in the first quarter of 2022. Compared to the pre-COVID figure of $62,758, it has increased by a staggering 103.2%.
Much of this growth is from real estate, government initiatives such as extended unemployment benefits and loan forbearance, as well as higher income.
However, despite this growth, their net worth still trails behind that of older generations. The average net worth of a millennial surpasses only that of Gen Z. On average, millennials under 35 years old have a net worth of $76,000, while those over 35 have over $400,000.
Gen X has an average net worth ranging from $400,000 to $833,000, whereas the older generations, comprised of baby boomers and the Silent Generation, boast an average net worth of more than $1 million.
Over half of millennials now own a home
In 2022, a significant event occurred for the millennial generation, as more than half of them (about 51.5%) became homeowners. This milestone reflects the trend of millennials increasingly investing in real estate.
According to RentCafe, out of the 10.8 million new millennial homeowners gained over the past decade, 7 million of them acquired their homes in the last five years. This surge in home buying has been driven by the availability of low mortgage rates.
While there was a prime opportunity for millennials to purchase homes at the start of the pandemic, the Federal Reserve has since increased rates in response to rising inflation. As a result, those who did not participate in the home-buying trend may have missed out.
Millennials' average salary also increased
According to the Bureau of Labor Statistics, those aged 25-34 earn a median salary of $1,003 per week or $52,156 annually, which is considerably higher than those aged 20-24. This increase is expected as young professionals begin to rise through the ranks.
Moreover, this demographic includes many who have completed graduate programs, leading to higher salaries. Meanwhile, those aged 35-44 have a median salary of $1,197 per week or $62,244 per year -- providing a glimpse of the financial growth to come.
How to increase your net worth
There's no denying that increasing your net worth can improve your financial stability and provide greater peace of mind. The good news is that there are steps you can take to make this a reality. One way to increase your net worth is to prioritize saving and investing.
By cutting back on unnecessary expenses and consistently investing a portion of your income, you can steadily grow your wealth over time. Another approach is to focus on boosting your income through furthering your education, pursuing new job opportunities, or starting a side hustle.
Regardless of your individual circ*mstances, the key is to remain disciplined in your financial habits and make a conscious effort to prioritize long-term financial growth. By taking consistent action towards increasing your net worth, you can achieve your goals and improve your overall personal finances.
It's remarkable to see how much millennials have achieved in such a short period of time. It's clear that the average net worth of millennials is on the rise and is expected to keep rising in the next few years. Overall, this tells us one thing: It's never too late for people to take their financial destiny into their own hands and strive towards success. With clever budgeting, proper planning, and the support of friends and family, any generation will be able to further their financial wellbeing and build a strong foundation for their future.
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FAQs
The average millennial under age 35 has a net worth of about $76,000; those over age 35 stand at over $400,000. Members of Generation X have average net worths between $400,000 and $833,000, and older generations including baby boomers and the Silent Generation have average net worths of over $1 million.
How much will the average millennial inherit? ›
To that point, 68%, of millennials and Gen Zers have received or expect to receive an inheritance of nearly $320,000, on average, USA Today Blueprint found. Additionally, 52% of millennials think they'll get even more — at least $350,000 — according to a separate survey by Alliant Credit Union.
What do millennials value most in life? ›
Millennials value experiences, personalization, authenticity, and transparency. They appreciate companies that are socially and environmentally conscious, and also value flexibility, communication, and collaboration.
How much will the average millennial need to retire? ›
Financial experts suggest that, depending on various economic factors including inflation, millennials may need between $3 million and $4 million to ensure a comfortable retirement. To achieve this goal by 2045, when most will be in their 50s, they will likely need to aim for the higher end of this range.
What net worth is considered wealthy? ›
In the United States, the concept of being rich is often a subject of discussion, curiosity and, sometimes, aspiration. Charles Schwab's 2023 Modern Wealth Survey provides insights into this topic, revealing that the average American equates being wealthy with a net worth of approximately $2.2 million.
What is considered a rich millennial? ›
A survey by Wells Fargo found that 29% of affluent millennials (defined as having assets of $250,000 to over $1 million of investible assets) admit they "sometimes buy items they cannot afford to impress others." According to the survey, 41% of affluent millennials admit to funding their lifestyles with credit cards or ...
Is 100k a big inheritance? ›
The Average Inheritance Falls between $100k and $1 Million
And a good rule of thumb is $100,000 or more is considered a large inheritance. Receiving such a substantial sum of money can potentially feel intimidating, particularly if you've never previously had to manage that kind of money.
What is the wealthiest generation in America? ›
Wealthiest Generation: Baby Boomers
According to the Federal Reserve data, baby boomers – people born between the 1946 and 1964– win the top spot for the wealthiest generation in the U.S. In aggregate, their total net worth is $78.55 trillion.
How much money do millennials have in the bank? ›
Our survey found that the majority of Gen Zers (54%) and Millennials (52%) have less than $5,000 saved, compared to 42% of Gen X respondents and 29% of Baby Boomers.
What do millennials buy the most? ›
Millennials are purchasing powerhouses who have likely embarked on careers. Many have children, and many are married. Millennials with kids purchase items like toys, clothes, and products for education, enrichment and safety.
Millennials were born into a technological world and came of age in a new millennium. They also were old enough to experience and comprehend 9/11. This generation has witnessed technological growth and development. As a result, they are considered more progressive, creative and far-thinking than earlier generations.
How many people have $1,000,000 in savings? ›
According to the Federal Reserve's latest Survey of Consumer Finances, only about 10% of American retirees have managed to save $1 million or more.
Is $600,000 enough to retire at 65? ›
It is possible to retire with $600,000 if you plan and budget accordingly. With an annual withdrawal of $40,000, you will have enough savings to last for over 20 years. Social Security retirement benefits can increase your monthly income by approximately $1,900.
Is $1,000,000 enough to retire at 65? ›
How long will $1 million in retirement savings last? In more than 20 U.S. states, a million-dollar nest egg can cover retirees' living expenses for at least 20 years, a new analysis shows.
What is the average millennial salary? ›
Average Millennial Salary 📊
The average Millennial salary is about $47,034, according to the U.S. Census Bureau. The average Millennial household makes $69,000 a year, according to the Pew Research Center.
How many millennials make 100k? ›
In 2022, around 4.8 million people between 25 to 34 years old whose annual income was 100,000 U.S. dollars or more obtained that income through wages and salary.
How much does the average millennial have in the bank? ›
Our survey found that the majority of Gen Zers (54%) and Millennials (52%) have less than $5,000 saved, compared to 42% of Gen X respondents and 29% of Baby Boomers.
What is a good net worth at 30? ›
The net worth you should be aiming for in your 30s is between $25,000 and $100,000, according to Crissi Cole, founder and CEO of Penny Finance.
