The wealth gap between baby boomers and millennials has become a gulf. Baby Boom generation is most often defined as those individuals born between 1946 and 1964. They are widely associated with privilege. They also wealthier, more active, and more physically fit than any preceding generation.
Meanwhile, millennials, also known as Generation Y, are individuals born between the early 1980s as starting birth years and the mid-1990s to early 2000s as ending birth years.
Also read: Financial Literacy for Millennials
If we look back in 1998, the average household aged 52 to 70 years had a net worth of $747,600. At the same time, households in the 20 to 35 age bracket had an average net worth of $103,400, according to a MagnifyMoney analysis of Federal Reserve data.
Over the last two decades, the oldest cohort has seen its average net worth grow to $1.2 million. Yet, the 20- to 35-year-olds have an average net worth of $100,800.
Many think that the young adults of 20 years ago were in a much different place.
Millennials’ currently face difficulty to accumulate wealth. Thus, the housing costs are now rising. The median home value in the U.S. today is $227,700. The number has skyrocketed since 1990. Back in 1990, the median home value was $79,100 (or $101,100, when adjusted for inflation) according to data from the U.S. Census Bureau.
On top of many problems, Millennials have also been hit hard by student debt.
In addition to these rising costs, the Great Recession also caused millennials to be timid about entering the market. There’s fear around millennials to get into investing.
Also read: 5 Investment Mistakes Rich People Never Do
Millennials shouldn’t let market anxiety deter them from investing. After all, they have the greatest asset on their side: time.
Therefore, the only solution left for them is to save. Saving will help them over the next 30 to 40 years. In the end, they will achieve their financial security by saving.