Previous age groups often criticized Millennials for excessively splurging on iPhones and avocados. It seems these young adults' monetary practices may have been more astute than initially thought.
According to data from investment service provider Wealthfront, millennials have been amassing wealth more rapidly than earlier generations over the past five years, which coincides with the beginning of theCOVID-19 pandemic.
Over the last half-decade, millennials using this platform have seen their assets increase by 137%. During the same duration, Generation X investors expanded their net worth by 76%, whereas Baby Boomers saw a growth of 40%. As of January 2020, the typical millennial client with Wealthfront possessed approximately $45,600 in savings and investments. This amount has since surged to $108,130.
Wealthfront pointed out that the count of millennial millionaires on their platform increased by 144%. Concurrently, the number of Gen X millionaires rose by 31%.
"The primary driver behind millennial financial prosperity appears to be their investment choices," explains David Fortunato, CEO of Wealthfront. "Millennials hold greater amounts in stocks compared to earlier generations at similar ages, leading to quicker asset growth due to high-risk-adjusted returns from these investments." He adds, “Most millennials prefer not to gamble their earnings attempting to outperform the market; rather, they understand that adopting a passive investment strategy yields better outcomes over time.” This was reported by Pawonation.com.
This data comes from over 1 million Wealthfront clients, but because it’s based on a single platform, it has limitations: The 137% growth in millennials’ assets doesn’t take into account external investment accounts, 401(k)s, employee equity compensation or real-estate holdings.
However, external data indicates that Millennials' net worth is increasing more rapidly. The aggregate net worth of American Millennials surged from approximately $3.9 trillion in the third quarter of 2019 to almost $16 trillion in the third quarter of 2024, effectively multiplying fourfold. as per the Federal Reserve .
Millennials have similarly become involved in owning property. As reported by the Wall Street Journal From 2020 to 2024, the property owned by millennials surged in value by $2.5 trillion. Even though older generations maintain higher overall wealth and real estate assets, millennials are increasing their holdings at quicker paces. According to mortgage information provided by Wealthfront, millennial home values rose over 40% within the last half-decade, compared with a 33% increase for Generation X and a 29% rise for Baby Boomers.
Individuals from the Millennial generation were born between 1981 and 1996, whereas those belonging to Generation X were born between 1965 and 1980. The Baby Boomer cohort, however, was born between 1946 and 1964.
Fortunato additionally pointed out that millennials are enthusiastic savers, enabling them to build up their wealth.
"When examining the savings rates across different age groups, it becomes evident that Millennials have a considerably higher saving ratio compared to earlier generations. This trend is anticipated to intensify further in the future as Millennials advance in their professional lives and amass greater riches," he stated.
This is all great news for millennials, who collectively have encountered various financial hurdles. A significant number started their career paths during the 2007-09 economic downturn and have since been grappling with issues such as student debt. wage stagnation In regions with a costly real estate market, the impacts of the pandemic coupled with soaring inflation.
Each generation is influenced by the larger economic conditions surrounding them, and millennials are no exception," Fortunato stated. "Similar to numerous millennials affected by the Great Recession, I received my degree in 2008. Joining the workforce amidst a worldwide downturn had a profound effect on my financial mindset. This experience underscored the significance of preparing for unforeseen occurrences from a monetary standpoint. Additionally, it demonstrated to me that markets do bounce back over time.
Data from Wealthfront indicates that millennials might have developed sound financial practices even amid challenging times. The firm observed that during the early stages of the pandemic, millennials consistently added funds to their accounts more steadily compared to older generations. Additionally, they saw their retirement savings grow quicker than those of Gen X investors—despite being further from retirement age. Between March 2020 and February 2025, millennial IRAs expanded by 112%, whereas Gen X IRAs increased by only 52%. This growth can be attributed to greater deposits as well as favorable market conditions.
"This demonstrates the resilience of millennials, primarily due to the obstacles they've faced. Their fortitude, combined with their dedication to long-term investment strategies, has enabled them to profit from significant market growth over the past half-decade," Fortunato stated.
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