Young Americans have managed to double their wealth despite the pandemic-fueled economic downturn and being saddled with a significant amount of debt, new data suggests.
Data from the Federal Reserve shows that millennials — the generation that faced the brunt of the financial burden during the 2008 recession around the time many were entering the job market — have surpassed a staggering $10 trillion in wealth.
The findings, first reported by Bloomberg, looked at consumer wealth between 2019 and the third quarter of 2020, and found that the net worth of millennials — born between 1981 and 1996 — increased by 21%; Generation X (Americans born between 1965 and 1979) jumped 8.5% while Baby Boomers (born between 1946 and 1964) increased their wealth by 4.3%.
Still, millennials are carrying a substantial amount of debt.
Indeed, millennials are reported to have $4.3 trillion in debt from consumer loans, such as credit card debt or student loans, that may be thwarting mortgages for home buying and real-estate investment opportunities. That compares to their $10.3 trillion in assets.
Gen X, meanwhile, has nearly $6 trillion in debt with $37 trillion in assets, and Baby Boomers have amassed $4.7 trillion in debt compared with $66.6 trillion in assets, the findings show.
While the pandemic has left millions of Americans jobless, household wealth hit a record high last quarter. Collective households’ net worth increased by almost 7% between April and June to $119 trillion — up from $111 trillion in the first quarter when the pandemic led to business shutdowns nationwide.
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