Not only have millennials faced tough labor markets and stagnant wages, many carried student loan debt—more so than previous generations. Between 1998 and 2016, the number of U.S. households holding some type of student loan debt doubled, according to Pew Research Center.
Another source of increased student debt is higher college attendance. Since 2000, undergraduate enrollment has increased by more than 3.5 million students. 95 More people are getting graduate degrees too. 96 For many, borrowing money to pay for training and education can yield returns over a lifetime.
Generation X
This generation is not only saddled with the highest mortgage debt of all the age groups but they also owe the most debt. In a recent study by Go Banking Rates, they found that 46% of this generation carries credit balances with an average of $4000 or more.
By 2019, the oldest millennials had finally narrowed their 34% wealth deficit. A follow-up St. Louis Fed report found that those born in the 1980s have median wealth levels 11% below older generations at similar ages. "It turns out that millennials may not be as 'lost' as we once thought," read the report.
67% of millennials report having credit card debt, while just 36% face student loan debt.
Likewise, millennial consumers (ages 25 to 40) have an average of $27,251 in non-mortgage debt, presumably across credit cards, auto loans, personal loans and student loans.
Overall, the average millennial carries about $28,317 in debt, not including mortgages, according to Experian's 2021 State of Credit report, which classifies millennials as those born between 1982 and 1995.
The Evolution of Marriage
Sawyer believes that many Millennials are hesitant to marry due to the threat of divorce. "Getting married is often perceived as a risk so Millennials tend to cohabitate and get financially stable before moving forward."
Generation Z was raised on the internet and spends a significant amount of time using phones, tablets and other mobile devices to connect with friends as well as brands and influencers. They have high expectations for the appearance, functionality and security of the online stores they shop at.
Here are a few of the findings that put millennials into a category of their own: 21% of millennials have never written a physical check to pay a bill. 39% use three or more methods (PC, mobile, snail mail) to pay their bills. 41% pay their bill using their debit card.
Kevin O'Leary, an investor on “Shark Tank” and personal finance author, said in 2018 that the ideal age to be debt-free is 45. It's at this age, said O'Leary, that you enter the last half of your career and should therefore ramp up your retirement savings in order to ensure a comfortable life in your elderly years.
In February, a Bankrate survey observed that 54% of younger millennials and 46% of Gen Z respondents said their emergency savings had declined since 2020. The survey also revealed that millennials were more likely than other generations to have higher credit card debts than savings balances.
Being Frugal
One of the biggest shared financial habits that millennials and Gen Z inherited is frugality, according to Starr Wells, owner of personal finance blog A Centsational Life.
Boomers are most burdened by credit-card debt, which an average of 81.4% of boomer consumers are dealing with. That's more than any other generation, and they also carry the highest overall median balance of $3,958.
Total debt
Mortgages and auto loans, by far the two largest components of a consumer's budget, experienced the fastest year-over-year growth of any debt category.
The average Millennial salary is about $47,034, according to the U.S. Census Bureau. The average Millennial household makes $69,000 a year, according to the Pew Research Center.
Gen Z's spending power is on the rise. According to a recent Bloomberg report, the young students and professionals now command $360 billion in disposable income.
It starts with what values are important to Gen Z'ers and moves into what brands and products they rate. “Teens feel that being cool is about just being yourself, embracing what you love, rejecting what you don't, and being kind to others.”
The Kronos Inc survey shows the priorities Generation Z has when it comes to their work ethic. Generation Z's work ethic calls for: Flexibility, with 26% stating they'd work harder and remain loyal to a company longer if they had flexible schedules.
A hunger for better-paying jobs could help explain why more young Americans today are single or unmarried. Nearly 1 in 3 millennials surveyed were willing to end a relationship if it meant getting a considerable raise at work and would stay solo for eight years, on average, to make significantly more money.
Millennials are arguably the hardest working generation in the workforce today, albeit how they approach work looks drastically different than their older counterparts. Boomers typically approach work in a hierarchical structure.
Societal And Economic Factors Affect Millennial Love
Anxiety about love and life in the current society affects millennials and their romantic relationships. A little worry or anxiety is common, but when it starts to affect someone's life negatively, it's time to reach out to an in-person or online therapist.
Net Worth at Age 40
By age 40, your goal is to have a net worth of two times your annual salary. So, if your salary edges up to $80,000 in your 30s, then by age 40 you should strive for a net worth of $160,000. Additionally, it's not just contributing to retirement that helps you build your net worth.
Personal Capital surveyed consumers to see how their net worth breaks down by age, and it found that among 40-somethings, the average net worth was $756,000. However, when we look at median net worth for that same age group, that number falls to $170,767.
How much money does the average American owe? According to a 2020 Experian study, the average American carries $92,727 in consumer debt. Consumer debt includes a variety of personal credit accounts, such as credit cards, auto loans, mortgages, personal loans, and student loans.