It’s true that money has been one of the ever-changing factors throughout the course of history. Remember when the average price for a gallon of gas in 1950 was only 18 cents? The Pew Research Center explains in a 2019 report that millennials aren’t worth as much as their parents at the same age.
“While young adults in general do not have much accumulated wealth, millennials have slightly less wealth than boomers did,” they say in the report.
How much money millennials have vs. their parents at the same age
The report continues on to say that the median net worth of millennial households was about $12,500 in 2016. Meanwhile, boomers had $20,700 at the same age in 1983. Moreover, Gen X households had about $15,100 at the same age in 2001.
The net worth refers to assets minus liabilities. This includes the total savings, the value of your home, 401(k), any other assets you may have, minus debt.
The millennial generation vs. earlier generations
Pew Research Center continues, “This modest difference in wealth can be partly attributed to differences in debt by generation.” They also find that compared to earlier generations, millennials take on much more student loans. “The share of young adult households with any student debt doubled from 1998 (when Gen Xers were ages 20 to 35) to 2016 (when millennials were that age).”
Millennials also tend to owe more than earlier generations. The report finds, “The median amount of debt was nearly 50% greater for millennials with outstanding student debt ($19,000) than for Gen X debt holders when they were young ($12,800).”
51% of millennials have some kind of second job
It’s also worth noting that life is simply becoming more expensive as years pass. In addition, salaries aren’t covering as much as they used to. Chalk up college, housing, childcare, student loans, and more it’s no wonder millennials don’t have as much money as their parents did at the same age.
Many millennials are struggling to get by as are millions of other Americans of all ages. Many of them actually work more than one job, sometimes more than two, just to make ends meet. A report shows about 4 in 10 Americans hold some kind of second job, and that rate is higher among millennials. A whopping 51%.
Millennials born in the 1980s only have a 50% chance of making more money than their parents or equal to
Moreover, a 2016 analysis from Stamford finds interesting data to back up Pew’s research. “Young people entering the workforce today are far less likely to earn more than their parents when compared to children born two generations before them,” the report says.
Additionally, Americans born in the 1940s had a 90% chance at making more money than their parents. However, millennials born in the 1980s have about a 50% chance of doing the same. Wow!