The Millennial generation is broke. They’re weighed down by student loan debt, eating too much avocado toast and are delaying everything from buying homes to having families are a result.
Or so the stereotype goes.
The fact is, as of 2021 Millennials are doing more than living paycheck to paycheck. And that stands to have a big impact on the finances of the rest of us, as they become more active consumers and investors themselves.
By the numbers: According to Bank of America, more than half of Millennials at least $15,000 in their savings, with 1 in 4 boasting at least $100K in their savings. Surprised? You shouldn’t be. The Millennials generation was born between 1981 and 1994, meaning the oldest Millannials are hitting their 40s and entering their prime earning years. The rumor of the broke college student Millennial is old news (that’s more like Gen Z these days).
Quote: “Are those funds earmarked for a house, car, travel or retirement? If we are to focus on retirement and assume the full $100,000 is dedicated for lifestyle income in their golden years, then the next question is what end of the [age] spectrum are they as a millennial?” — Anthony Trias, CFP, an advisor at Equitable Advisors
Takeaway: A more secure younger generation is only going to be a good thing for Gen Xers and Boomers who are approaching retirement. Remember, we’re about to see the largest inter-generational wealth transfer in history as Boomer parents pass roughly $16 trillion down to their Millennial kids. That means the largest living generation will soon have enough money to buy houses, invest in the stock market and participate in the economy in ways that will benefit the rest of us directly.