Key points include:
- Substantial Growth in Net Worth: From 2019 to 2022, the median household net worth for older millennials nearly doubled to $130,000, primarily driven by investments in real estate and the stock market. WSJ
- Homeownership and Retirement Savings: Increased homeownership rates and contributions to retirement accounts have been significant factors in this wealth accumulation. WSJ
- Perception of Wealth Fragility: Despite these gains, many millennials feel their financial success is precarious, often viewing their increased net worth as “phantom wealth” because it is tied up in assets like homes and retirement accounts, which are not easily accessible for daily expenses. WSJ
- Influence of Past Economic Crises: Experiences from the 2007-2009 recession and the COVID-19 pandemic have left millennials cautious, contributing to feelings of financial vulnerability despite apparent wealth. WSJ
- Prioritization of Experiences: Shaped by witnessing economic downturns, millennials often value experiences over material possessions, reflecting a desire to enjoy life amidst financial uncertainties. WSJ
- Wealth Inequality Within the Generation: There is a widening wealth gap among millennials, with disparities in homeownership and income levels leading to unequal financial stability within the cohort. WSJ
Overall, while millennials have made notable financial strides, concerns about the liquidity and stability of their assets contribute to a sense of cautious optimism regarding their economic futures.