Traditionally, at this stage, we’d anticipate Millennials to be settling into careers, getting hitched, and starting families. Yet, current trends paint a different picture entirely.
Instead of following the conventional route, Millennials are opting for travel, tackling student loans, and diverging from societal norms. What does this mean for past and future generations? Let’s delve into seven notable trends steering the Millennial generation in the years ahead.
1. Education Comes First, Wealth Follows… Slowly
Millennials are the most educated bunch to date.
Over a third of all Millennials, and two in five Millennial women, hold a college degree.
Despite these educational achievements, this generation isn’t accumulating wealth at the same pace as their predecessors. New America notes that Millennials lag significantly behind their parents and grandparents in wealth accumulation.
In 2020, the median household income for Millennials (pre-tax) hovered just above $71,000, as per the US Census Bureau.
PayScale reveals that “real wages” (adjusted for inflation) for Millennials aged 33 to 40 have dropped by over 10% since 2006.
Additionally, Millennials face the highest daily expenses, averaging $208.77, among all generations.
The TIAA Institute underscores Millennials’ financial strain, citing high debt levels, meager savings, and costly money management choices.
According to a 2020 analysis, over a third of Millennials couldn’t gather $2,000 within 30 days for an unexpected emergency.
It’s worth noting that this generation entered adulthood during the Great Recession, which slashed their family wealth by 45% initially, with the gap widening between 2010 and 2016.
While some view Millennials as a “lost generation” in wealth accumulation, others pin hopes on their education as a potential catalyst for future financial stability.
2. Pursuing Health and Wellness
Millennials are striking a balance between fitness and sobriety.
More than three-quarters report exercising at least once a week, while only 24% indulge in alcohol weekly.
In 2018, Millennials made up 33% of health club members, favoring boutique studio gyms for their community vibe.
They’re willing to invest in their fitness, with nearly 40% admitting to incurring credit card debt for fitness and nutrition expenses.
Despite their efforts, Blue Cross Blue Shield Association warns of declining health among Millennials, with health starting to dip around age 27.
3. Grappling with Student Loan Burden
The average Millennial carries a staggering debt load, exceeding $87,000, according to Experian.
Student loan debt averages nearly $38,877 per Millennial.
The cost of a four-year college education has surged by nearly 70% since 1999, leading to a doubling in loan issuance for higher education expenses.
Millennial borrowers aged 25 to 34 owe over $500 billion in federal student loans, with those aged 35 to 49 carrying $622 billion in unpaid federal student loans.
Bank of America reports that Millennials with student loan debt allocate 10% of their monthly income to loan payments.
A substantial portion face default, with nearly 30% of those who began college in 2003 defaulting by 2023.
While some pin hopes on student loan forgiveness, uptake remains low, with only 2.16% of applications accepted in late 2020.
4. Homeownership Hesitation
Millennials are less inclined toward homeownership than preceding generations.
Homeownership among Millennials stands at 61%, compared to 68% for Gen Xers and 66% for Boomers at a similar life stage.
A growing number, 18%, express no intention of ever owning a home, citing affordability concerns as the primary deterrent.
Student loan debt further postpones homeownership for 27% of Millennials.
Urban living norms, with 88% of Millennials residing in cities as of 2018, also contribute to the preference for renting over buying.
5. Marriage, a Deferred Dream
Marriage rates among Millennials lag behind previous generations, with only 44% married in 2019.
The average marrying age is now 29.8 for men and 27.8 for women, the highest recorded.
More Millennials opt for cohabitation and parenthood without marriage, with 42% considering marriage before having kids of lesser importance.
Data from the CDC shows over 40% of 2020 births occurred to unmarried parents.
Nevertheless, marriage isn’t entirely off the table, with surveys indicating a potential shift towards it in the next two to five years.
6. Delayed Parenthood
Millennials are postponing parenthood, with the average age of a woman at first childbirth rising from 24.9 to 26.3 between 2000 and 2014.
Delaying parenthood correlates with higher earnings for women, as per US Census data.
Financial concerns drive this delay, with 60% of childless individuals citing insufficient savings as the primary reason.
External factors like the pandemic further contribute to this postponement, with a third of women citing it as a reason to delay childbirth.
7. Wanderlust Takes Center Stage
Experiences trump material possessions for many Millennials, with nearly 50% preferring to spend on travel over homeownership.
Over half prioritize “traveling the world” over starting a family, according to Deloitte.
On average, Millennials embark on 5.6 trips annually.
Post-pandemic, Millennials are leading a resurgence in luxury travel, with a preference for international destinations.
Many opt for long-term travel and work abroad experiences, with over 70% expressing interest in working outside the US, as per a PricewaterhouseCoopers poll.
Businesses stand to gain from offering international opportunities, fostering innovation and diverse perspectives among their Millennial workforce.
In Conclusion
These seven trends paint a distinct picture of Millennials in 2024.
Driven by financial constraints, shifting societal norms, and external upheavals like the Great Recession and the COVID pandemic, Millennials forge their unique path.
As they mature, their choices will undoubtedly evolve, shaping not only their lives but also the landscape of future generations.
