Millennials Are Currently Highly Unwealthy
With the current state of the economy, many Millennials are struggling to make ends meet.
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Many Millennials still live with their parents, as they can’t afford to move out, according to The New York Times. This is mostly due to low wages and rising house costs, with the prospect of owning a home being very far off in the future.
COVID-19 Set Many People Back
Some Millennials had some prospects before the COVID-19 pandemic, with some even living away from home, even if they were renting.
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But COVID-19 put a stop to that. Many Millennials had to move back home with their parents as they couldn’t afford the rent, and many also lost their jobs, which was a deciding factor.
Millennials Are Working Multiple Jobs
One thing Millennials have yet to master is work-life balance, as many are having to work multiple jobs just to make ends meet.
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It doesn’t matter whether they are still living with their parents, renting, or even if they have been able to buy their own home — many are working multiple jobs so that they can pay their bills. They don’t having anything left over to keep in a savings post for a rainy day.
Many Are Not Able to Go Out and Have Fun
If there’s one thing most people might want to go out and do after a long week at work, it’s to go out and have fun with their friends and family.
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However, with the lack of finances they have currently and with the price of everything going up, many Millennials struggle to find spare money after all their bills have been paid to go out and do anything.
Millennials’ Finances May Be About to Change
The outlook might currently be bleak, however, recent reports are saying that Millennials’ luck regarding money and finances is about to change for the better.
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Millennials are set to become one of the richest generations in history, with the overall total being estimated at $90 trillion, according to CNN Business.
The Wealth Millennials Will Receive Will Be Inherited
Millennials being the wealthiest generation might sound great to them — however, there is a catch.
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The catch is that the money Millennials are set to make won’t come from their earnings, and will instead come from what they inherit from some of their older, wealthier family members.
Inherited Money Has a Higher Federal Estate Tax Exemption
The good news for Millennials with wealthy parents and grandparents is that the federal estate tax exemption is much higher than what it used to be.
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In 2008, the federal tax exemption rate was at $2 million. However, Fortune has stated that this exemption is now at $13.61 million, which means Millennials can enjoy more of their inheritance without having to pay tax on it.
Millennials Are Part of the ‘Sandwich’ Generation
Although they might be more commonly known as Millennials, this generation is also known as the “sandwich” generation.
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This is a generation of people who have to financially support their parents who are older and might have health issues as a result of age, as well as having to provide for their children, according to the Pew Research Center.
First-Generation Wealth Is on the Rise
With there now being more ways to make large amounts of money, such as through influencing, this has meant that first-generation wealth is now on the rise.
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This is a good thing, as it means people who don’t come from wealth no longer have money worries that they may have expected to have, but it also means that they need to learn how to invest that money wisely.
Millennials Are No Longer Investing in the Stock Market
Generations before Millennials were much more likely to invest in the stock market, but Millennials have taken a different approach.
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Forbes discovered that 80% of Millennials and Gen Z are most likely to invest in areas such as private equity, commodities, and real estate.
Millennials’ Wealth Will Grow the Most
According to The Guardian, Millennials are expected to increase their wealth the most of any generation in 2024.
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Roughly 75% of Millennials will see an increase in their wealth in 2024. In comparison, 53% of Baby Boomers, 56% of Gen X, and 69% of Gen Z will see an increase in their wealth.
Millennials May No Longer Have to Complain about Money
The news that Millennials will be the wealthiest generation in recent history should mean that they will no longer have to complain about a lack of money.
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However, as these are only going to be the people with wealthy parents and grandparents, it’s somewhat unlikely that most of the Millennials currently complaining about a lack of money will be the ones in receipt of this $90 trillion.