Millennials double wealth to more than $10T despite pandemic, debt: Federal Reserve
Despite growing wealth, they carry more than $4T in debt
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.
Young Americans have managed to double their wealth, despite the coronavirus pandemic, new data suggest. (iStock)
US HOUSEHOLDS WEALTH HITS RECORD DESPITE CORONAVIRUS PANDEMIC
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.
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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.