Older folks have pilloried millennials as the ultimate generation of slackers, but it appears that the younger set is having the last laugh.
Seemingly out of nowhere, millennials have risen to a level of financial security that in some ways eclipses what their baby boomer and Generation X forebears accomplished, according to a recent report in The Wall Street Journal. The newspaper reports:
“In early 2024, millennials and older members of Gen Z had, on average and adjusting for inflation, about 25% more wealth than Gen Xers and baby boomers did at a similar age, according to a St. Louis Fed analysis.”
So, how did millennials — those born between 1981 and 1996 — do it? Here are some of the things they did right.
They cashed in on the housing boom
Real estate has been the “biggest driver” of the surge in millennial wealth, according to the WSJ. Millennial housing wealth has soared by $2.5 trillion.
Many millennials who have cashed in on the housing boom bought their properties prior to the recent runup in prices.
For more on this generation’s homeowner habits, check out “15 U.S. Cities Where Millennials Are Buying the Most Expensive Homes.”
They started saving for retirement early
When millennials were young and just starting their careers, many made large contributions to their workplace retirement accounts, the WSJ reports.
That bet has paid off in a big way as the stock market has done very well overall during their working lifetimes.
Even if you are off to a slow start, it’s never too late to begin saving for your golden years. Learn tips for building a big nest egg in “How to Save for Retirement, Decade by Decade.”
They are having fewer children
Millennials tend to have smaller families, with many couples going childless. That is a decision that “whatever the effects on the country, is a boon to budgets,” according to the WSJ.
If you are the parent of a millennial who has kids, you can benefit from learning about the “8 Tips on How to Help Your Grandchildren Financially.”
The bottom line: How millennials boosted their wealth
Millennials have surprised everyone — possibly including themselves — by trashing the “slacker” narrative and building solid levels of wealth.
In the end, there is nothing magical about how many millennials improved their finances. They simply bought nice homes, invested money in the stock market, and — over time — reaped the rewards.
The millennial journey is a reminder that old-fashioned rules about how to amass wealth haven’t changed much over time. For more insights, check out Money Talks News founder Stacy Johnson’s podcasts:
