The financial health of Millennials

Changing Balance Sheet across Generations

The St Louis Fed has published a report on Millennial balance sheets, comparing them to Gen Xers. The average value of total assets was lower among millennials than Gen Xers. Millennials held an average of $162,000 of assets relative to Gen X’s average of $198,000. The report also found that Millennials held a slightly higher level of total debt, at an average of $72,000 compared to Gen X’s average of $67,000. However the composition was markedly different – average student loan levels surged from $4,200 for Gen X to $14,700 for millennials. In short, millennials’ average asset position is lower, while they hold slightly more debt, which leads to an average net worth of $90,000 for millennials and $130,000 for Gen X.

In closing the report notes,

We observe that millennials have been going to school longer and delaying major life events. Thus, it makes sense that they hold lower levels of assets. They have had less time in the labor force, and a smaller share of them have moved out on their own, which contributes to the lower levels of residential assets. However, they have shown a higher propensity to save for retirement and to avoid credit card debt.

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