Millennials are earning more, hustling harder, and still falling short. Boomers? They are holding most of the cash. Right now, baby boomers own 53.2% of U.S. wealth. Millennials, despite being a major part of the workforce, sit at just 4.6%. That is not a small gap.
The frustrating part? It is not all about choices. Instead, it is about timing, luck, and a system that gave one generation a smoother ride. Boomers didn’t face crushing student debt or sky-high housing prices. Millennials came of age during financial crashes and job markets that moved slower than dial-up internet.
Why Boomers Got a Head Start
Boomers graduated when tuition was dirt cheap. Many didn’t need loans. And houses? You could buy one with a single income. On top of that, they got pensions, not just flaky 401(k)s. Their wages grew fast, especially in their prime earning years.
Buro / Pexels / Unlike Baby Boomers, Millennials are stuck with student loans before they even start their first job.
Wages haven’t kept up with inflation, and buying a house feels like chasing a mirage. The job market keeps shifting, and traditional paths to financial stability are fading.
Millennials work longer hours, take on side gigs, and still feel broke. And it is not just a feeling. Most of them haven’t hit key wealth milestones like homeownership or long-term investing. In fact, 45% of millennials don’t own property, and many think they never will.
Meanwhile, boomers own 37% of U.S. homes. That is not just real estate. It is real wealth. Homes gain value over time, and boomers have been sitting on that rising tide for decades. Millennials are stuck paying rent and watching prices soar higher every year.
Recessions Hit Millennials Hard
The timing couldn’t have been worse. Millennials entered the job market during the Great Recession and got hit again during COVID-19. Every time they tried to build momentum, the rug got pulled. Layoffs, wage freezes, and instability became the norm.
Dan / Pexels / Unlike Millennials, Boomers built their careers during economic booms. They rode the wave of growth and kept climbing.
That difference in timing alone created years of lost income and missed opportunities for millennials.
On average, many millennials make more money than boomers did at the same age. That is the silver lining. Higher salaries are possible, especially in tech, finance, and digital sectors. It is just harder to hold onto that money when expenses are sky-high.
So yes, millennials can build wealth. It is just a more challenging climb. The key isn’t just earning more. It is managing money smarter. And that is where things start to shift.
Many millennials are getting serious about saving. Experts say saving 20% of income and automating investments can add up fast. Compound interest works like magic when given time. It is boring, but it works.
Similarly, millennials also know how to hustle. Freelancing, side gigs, and online income streams are now common. That extra cash helps build savings, pay off debt, and even start investing earlier than boomers ever did.
Experiences Over Stuff
Here’s something that makes millennials different. 78% say they’d rather spend on travel and experiences than material things. That is not bad, but it does impact long-term savings. Less focus on buying assets like homes means less wealth growth over time.
Boomers prioritized ownership. Houses, cars, and stocks. Those things grow in value. Millennials lean toward flexibility and freedom, but that lifestyle comes with a cost. Experiences don’t grow in value after the trip ends.
