Adults have spent millennia as the last generation of slackers, but it seems a younger set has the last laugh.
It appears that millennials have risen to a level of financial security that somewhat eclipses that of their Generation X forebears, according to a recent report in the Wall Street Journal. The newspaper reports:
“In early 2024, millennials and older members of Gen Z will, on average and adjust for inflation, own about 25% more wealth than Gen Xers and baby boomers did during the same period, according to an analysis by the St. Louis Fed .”
So, how are millennials – those born between 1981 and 1996 – doing? Here are some of the things they did well.
They went into mortgages
Real estate has been the “biggest driver” of millennial wealth growth, according to the WSJ. Millennial housing wealth increased by $2.5 trillion.
Many millennials who cashed in on the housing boom bought their properties before the recent price increase.
For more on this generation’s homeownership habits, check out “15 US Cities Where Millennials Buy the Most Expensive Homes.”
They start saving for retirement early
While millennials are young and starting their careers, many are making significant contributions to their retirement accounts at work, the WSJ reports.
That bet paid off in a big way as the stock market did very well during their working lives.
Even if you start small, it’s never too late to start saving for your good years. Read tips for building a large nest egg in “How to Save for Retirement, Decade.”
They have several children
Millennials tend to have small families, and many couples are childless. That’s a decision that “whatever the consequences for the country, it’s a boon for the budget,” according to the WSJ.
If you are the parent of a millennial with children, you may benefit from reading “8 Tips for Helping Your Grandchildren Financially.”
Main point: How millennials are increasing their wealth
Millennials have surprised everyone – possibly including themselves – by ditching the “loose” narrative and building strong levels of wealth.
Ultimately, there is no magic about how many millennials have improved their finances. They simply buy nice homes, invest in the stock market, and – over time – reap the rewards.
The millennial journey is a reminder that the old rules about how to accumulate wealth haven’t changed much over time. For more information, check out Money Talks News podcasts by Stacy Johnson:
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