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 net worth of millennials has surged from $62,758 to $127,793 since the start of the pandemic. Much of this growth is from real estate; as of 2022, more than half of millennials had become homeowners. The average millennial makes between $52,156 and $62,244 per year.
What is the average millennial net worth? ›
What is the average net worth of millennials? The average net worth of millennials is $549,600. However, this varies quite a bit across the millennial age range. The median net worth of millennials is $135,600.
How much money does the average millenial have in savings? ›
Millennials (ages 28 to 43): $9,299. Gen X (ages 44 to 59): $5,132. Baby boomers (ages 60 to 78): $4,060.
What percentile is a $3 million net worth? ›
The 95th percentile, with a net worth of $3.2 million, is considered wealthy, facilitating estate planning and possibly owning multiple homes. The top 1%, or the 99th percentile, has a net worth of $16.7 million and represents the very wealthy, who enjoy considerable financial freedom and luxury.
Are millennials the richest generation? ›
Millennials stand to become the richest generation in history, after $90 trillion wealth transfer. Millennials are set to inherit as much as $90 trillion in assets before 2044, a new report shows.
How many millennials make over 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.
Which generation is the wealthiest? ›
A gigantic wealth transfer over roughly the next decade will likely make millennials "the richest generation in history," according to a report from global real estate consultancy Knight Frank.
How many people have $100,000 in savings? ›
Most American households have at least $1,000 in checking or savings accounts. But only about 12% have more than $100,000 in checking and savings.
At what age should you have 100K? ›
Explore: What To Do If You Owe Back Taxes to the IRS
“By the time you hit 33 years old, you should have $100,000 saved somewhere,” he said, urging viewers that they can accomplish this goal. “Save 20 percent of your paycheck and let the market grow at 5% to 7% per year,” O'Leary said in the video.
Is $100,000 in retirement at 30 good? ›
“By the time you're 40, you should have three times your annual salary saved. Based on the median income for Americans in this age bracket, $100K between 25-30 years old is pretty good; but you would need to increase your savings to reach your age 40 benchmark.”
This effectively means the top 1% are those with more than $10 million (~25m) and the top 0.1% are those with roughly $1 billion. There are estimated to be a little over 8 million households in the US with a net worth of $3 million or more. I very much doubt that any of them have that amount in savings.
What is a respectable net worth? ›
Net worth is the difference between the values of your assets and liabilities. The average American net worth is $1,063,700, as of 2022. Net worth averages increase with age from $183,500 for those 35 and under to $1,794,600 for those 65 to 74. Net worth, however, tends to drop for those 75 and older.
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.
Will millennials inherit trillions? ›
By the numbers: The Great Wealth Transfer
Estimated wealth to be inherited through 2045, by generation. Baby boomers (born 1946-1964) will inherit $4 trillion. Gen X (1965-1980) will inherit $30 trillion. Millennials (1981-1996) will inherit $27 trillion.
What generation is in the most poverty? ›
More Millennial households are in poverty than households headed by any other generation. In 2016, an estimated 5.3 million of the nearly 17 million U.S. households living in poverty were headed by a Millennial, compared with 4.2 million headed by a Gen Xer and 5.0 million headed by a Baby Boomer.
What is considered wealthy in 2024? ›
To be considered very high net worth, one might need assets ranging from $5 million to $10 million, while an ultra-high net worth status could require $30 million or more.
What should net worth be 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.
What's the average net worth of a 30 year old? ›
Average net worth by age
| Age by decade | Average net worth | Median net worth |
|---|
| 20s | $99,272 | $6,980 |
| 30s | $277,788 | $34,691 |
| 40s | $713,796 | $126,881 |
| 50s | $1,310,775 | $292,085 |
4 more rowsIf you're looking for a ballpark figure, Taylor Kovar, certified financial planner and CEO of Kovar Wealth Management says, “By age 30, a good rule of thumb is to aim to have saved the equivalent of your annual salary. Let's say you're earning $50,000 a year. By 30, it would be beneficial to have $50,000 saved.
Why are millennials so rich? ›
There may be another factor creating so much wealth among millennials: inheritances. In what's known as “the great wealth transfer,” baby boomers are expected to pass down between $70 trillion and $90 trillion in wealth over the next 20 years. Much of that is expected to go to their millennial children.
