The net worth of Americans ages 18-39 surged by 80% from the start of 2019 to the third quarter of last year

The net worth of Americans ages 18-39 surged by 80% from the start of 2019 to the third quarter of last year.


The wealth of Americans aged 18-39 soared by 80% from early 2019 to the third quarter of last year, according to research from the Federal Reserve Bank of New York, surpassing the growth rates for older generations.

However, much of these gains are attributed to investments that rose alongside stock markets and largely do not translate into disposable income. While many millennials (ages 28-43, per Pew Research) — along with many of their Gen Z counterparts (ages 12-27) — are earning higher incomes, they are still channeling much of that money into increasingly expensive everyday expenses, from necessities like rent to indulgences like leisure travel.

A recent CNBC survey of 18-to-34-year-olds revealed that 42% reported earning more than they did a year ago, compared to 27% who reported earning less. Yet nearly half said they could not cover more than one month's expenses if they were to become unemployed, with only 11% able to do so for a year. Only 32% of Gen Zers and 37% of millennials are comfortable with their emergency savings, according to a recent Bankrate report, though their Gen X counterparts feel only slightly better (38%).

Despite the economy slowing down several years after Covid lockdowns, younger Americans are outspending their older peers on things like travel, entertainment, and dining out. A Morning Consult report from last summer showed that, on average, Gen Zers and millennials were spending over $400 a month on nonessentials, compared to about $250 for Gen Xers and less than $200 for baby boomers.

According to TransUnion, millennials' share of bank card balances surpassed that of baby boomers for the first time in 2023. This trend is partly due to younger consumers, like those before them, building and using more credit as they age. However, the combination of high inflation and high interest rates means they are doing so in a significantly different economic environment, with potentially more severe consequences, said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion.