The wealth gap has grown between two American generations, millennials and baby boomers.
The oldest demographic has seen its average net worth rise to $1.2 million over the past two decades while 20 to 35-year-olds have a net average of $100,800.
According to MagnifyMoney, a consumer site on personal finances:
The net worth gap between older and younger Americans has widened into a chasm during the last 20 years. In 1998, the average older household amassed roughly seven times the net worth of younger households ($747,600 versus $103,400). In 2019, the average boomer household has 12 times the net worth of a millennial household ($1,210,100 vs. $100,800).MagnifyMoney
Despite being younger, millennials have far greater debt than any other age group. They have more debt than boomers do now, and they have more debt than 30-somethings held two decades ago.
Rising housing expenses, student debt, the 2008 recession, and millennials’ concerns about investments, such as 401ks, were also cited as reasons for the gaps.
And, with fewer assets and higher debt, millennials will continue to lag behind the generation of their parents.