Growing up in the shadow of the Great Recession and navigating today’s high housing costs, millennials often face perceptions of financial struggle. However, a recent study by LendingTree reveals that millennials are better off financially than Generation X and baby boomers were at similar stages in life, particularly in areas like net worth, assets, income, and spending habits.
Key Insights
1. Millennials Have Higher Net Worth
When adjusted for inflation, millennials have greater net worth than Gen Xers and baby boomers at the same ages.
In 2022, millennials aged 26 to 41 had a median net worth of $84,941.
Gen Xers in 2007 (aged 27 to 42) had a median net worth of $78,333 in 2022 dollars.
Baby boomers in 1989 (aged 25 to 43) had a median net worth of $58,101 in 2022 dollars.
This means millennials’ net worth was 8.4% higher than Gen Xers’ and 46.2% higher than baby boomers’.
2. Millennials Own More Assets but Also Carry More Debt
Millennials are more likely to own assets and carry debt than earlier generations.
In 2022, 99.3% of millennials had assets, compared to 97.5% of Gen Xers in 2007 and 93.8% of baby boomers in 1989.
Millennials also carried debt at higher rates: 88.1% had debt in 2022, versus 86.9% of Gen Xers and 85.8% of baby boomers.
Despite their higher debt levels, millennials’ asset values are significant. For example, in 2022, their median asset value was $219,200, compared to $246,991 for Gen Xers in 2007 and $124,963 for baby boomers in 1989 (all in 2022 dollars).
3. Millennials Have Higher Cumulative Income
Millennials born in 1989 earned a cumulative median income of $446,570 between ages 25 and 34 (2014–2023), which is:
6.9% higher than the $417,700 earned by midpoint Gen Xers at the same age (adjusted to 2023 dollars).
23.2% higher than the $362,330 earned by midpoint baby boomers.
4. Housing Costs Are a Bigger Challenge for Millennials
Housing affordability remains a significant hurdle for millennials.
In 2024, the median rent for a 35-year-old millennial was $1,481—$230 more per month than Gen Xers paid in 2008 and $307 more than baby boomers paid in 1990 (adjusted for inflation).
A 20% down payment on a median home in 2024 required $85,960, compared to $69,305 for Gen Xers in 2008 and $57,107 for baby boomers in 1990.
While today’s lower interest rates offer some relief, saving for such a large down payment remains a daunting task for many millennials.
5. Millennials Spend Less of Their Income
Although millennials spend more in absolute terms, they use a smaller portion of their income than previous generations.
Millennials aged 25 to 34 spent 75.8% of their annual income in 2022.
Gen Xers spent 83.2% in 2006, and baby boomers spent 91.0% in 1988 (all adjusted for inflation).
Why Millennials Are Ahead
Several factors contribute to millennials’ financial standing:
Higher education levels lead to better job opportunities.
Delayed life milestones, such as marriage and homeownership, free up funds for savings and investments.
Experiences like the Great Recession and the COVID-19 pandemic have encouraged careful financial planning.
LendingTree’s chief credit analyst Matt Schulz explains:
“The financial struggles of previous generations have shaped millennials’ outlook on money. They are more focused on saving, investing early, and making financially savvy decisions, setting them up for success.”
Challenges Millennials Face
High housing costs, rising taxes, and increased health care expenses remain obstacles. Millennials spend more of their income on taxes (9.6% compared to 2.7% for Gen Xers and 8.4% for baby boomers) and health care (4.0% compared to 2.9% for Gen Xers and 2.7% for baby boomers).
Financial Tips for Millennials
To improve their financial position, millennials can:
1. Pay Off High-Interest Debt: Consolidate debt with personal loans or 0% balance transfer credit cards to save on interest.
2. Find Support: Work with an accountability partner to stay motivated and on track with financial goals.
Methodology
Data on net worth, assets, and debt was sourced from the Federal Reserve’s Survey of Consumer Finances, adjusted for inflation to 2022 dollars. Income and spending figures came from the U.S. Census Bureau and the Bureau of Labor Statistics, respectively. Housing and gas price data were adjusted to 2024 dollars using the Consumer Price Index.
Millennials may face challenges, but their financial planning and adaptability put them in a stronger position than previous generations at similar points in life.
