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The average American millennial household today (ages 20 to 35 in 2016) has an average net worth of $100,800, while the average American baby boomer household today (ages 52 to 70 in 2016) has a net worth of $1.2 million
In 1998, the average household aged 20 to 35 had a net worth of $103,400, while households aged 52 to 70 had a net worth of $747,600, MagnifyMoney found - roughly seven times more than the younger households.
That means the wealth gap between older households and younger households has nearly doubled in the past 20 years, climbing from seven to twelve times the net worth.
In that time frame, the average net worth for households ages 20 to 35 has declined by $2,600, while households ages 52 to 70 have seen a $452,400 increase in net worth.
Much of that debt takes shape in student loans, thanks to college tuition that has more than doubled since the 1980s - the national student-loan debt total is more than $1.5 trillion, and the average student-loan debt per graduating student in 2018 who took out loans is $29,800.
Meanwhile, as Mitra reported, rising housing costs also play a role. First-time homebuyers today will pay 39% more than first-time homebuyers did nearly 40 years ago,
There's also the aftermath of the Great Recession, which created a financial domino effect for millennials that put them on a slow path to wealth accumulation. It hit millennials born in the 1980s especially hard: Their wealth levels are 34% below where they would most likely have been if the financial crisis hadn't occurred, according to a report by the St. Louis Fed.
The recession also made millennials wary about investing, Mandi Woodruff, executive editor at MagnifyMoney told Mitra.
originally posted by: watchitburn
Obama's crappy economy definitely set them back. But at least things are now looking good on that front.
They also didn't help themselves by getting useless liberal arts degrees majoring in Beyonce studies.
originally posted by: TerryMcGuire
a reply to: DanDanDat
Interesting stuff Dan. I think we also need to consider that the boomers were the first generation to be raised and then to enter the work force in the aftermath of World War II. The world they inherited was a world where the entire industrial stength of the western world was situated on US soil, Europe and Japan being bombed the hell out of.
That America offered that generation of boomers careers of their choice in many cases. Unions had arisen do to the strength of the labor market and good wages were to be had.
Boomers had excess money to invest which I don't know if later generations had. Those investments in many cases continue to return to boomers money to live on.
There is a lot to the old adage, that money comes to money. Oh, as well there all the very very rich that are now boomers and it is very likely that the figures you posted reflect not only the wealth gap of age but the over all wealth gap between rich and poor.
originally posted by: JAGStorm
a reply to: DanDanDat
I think there are a lot of different reasons for it, and some of it is actually good.
A lot of younger generation are less materialistic in general. They don't have collections, they don't care about name brands as much, or shopping at the mall.
They seem much more interested in experiences, in food, in culture.
This reflects in the national debt. It reflects in insurance programs and medicare, social security and all the rest of the schemes that rely on being paid for in the future. Problem there is that boomers are not dying in their 40s and 50s anymore, we are living into our 70s and 80s and the future is here NOW and we must live alongside those people that we placed those debts upon. We gave to younger generations an economy that thrives only on feeding on it's children.