What generation is best with money?
Statistically broken down into generations, Gen Z (ages 18-25) saves an average of 14% while millennials (26-42),
Aligning on money is all the more pressing for younger generations, who are earlier on in their relationships and careers—nearly half (49%) of Gen Zers view financial compatibility as more important than physical compatibility. That's compared to 40% of millennials, 35% of Gen Xers, and 30% of baby boomers.
Gen Zers are having a harder time making ends meet, let alone building wealth. Roughly 38% of Generation Z adults and millennials believe they face more difficulty feeling financially secure than their parents did at the same age, largely due to the economy, according to a recent Bankrate report.
However, over the next twenty years, Millennials are poised to inherit some $90 trillion of assets and become the richest generation in history – but only the ones who already come from affluent families, potentially deepening wealth inequality further.
Baby boomers have the largest net worth
Baby boomers own 52.8% of all wealth in the U.S., compared to 5.7% of millennials, according to the Federal Reserve.
While just over half of Gen Z (52%) feel confident that they're on track to meet their financial goals, fewer than half (48%) are fully or even mostly financially independent. However, Gen Z still feel able to handle everyday financial activities.
53% of Gen Z see high cost of living as a barrier to financial success. They're 'buckling down,' expert says. Young individuals are “buckling down” when it comes to spending, a Bank of America executive said, following a new Gen Z-focused survey by the firm.
Comparatively, the generation with the least debt — Gen Zers (ages 18 to 26) — owes less than half as much, with an average balance of $21,665.
Financial literacy tends to be low within each of the five generations, but particularly so among Gen Z. Two-thirds of Gen Z could answer only 50% or less of the index questions correctly. Within Gen Z, financial literacy tends to be lowest among those who have never attended college.
The average 64-75-year-old American is 94% wealthier than the average 35-year-old. Today's 40-year-olds own half the wealth of older generations when they were the same age. Baby boomers owned 33% more real estate than Generation X at the same age. Baby boomers are collectively 10 times wealthier than millennials.
Which is the unhappiest generation?
While millennials might be dissatisfied about things it turns out that it's actually Gen Z who is REALLY unhappy. According to the World Happiness Report for 2024, Gen Z is, right now, the unhappiest generation.
It is a known fact that lifespan increases with each generation. For baby boomers, the average life expectancy is 70 years, for Gen X its 85, and newer generations like Gen Z and Alpha will likely exceed the 100-year mark.
The highest average American net worth belongs to those aged 65 to 74 at $1,794,600. Americans 55 to 64 years old have the second-highest average net worth at $1,566,900.
A growing discourse suggests that Generation Z (Gen Z) is endowed with higher cognitive abilities compared to their predecessors, the Millennials.
This incidence of negative emotions is particularly high among Gen Z, which reports rates of anxiety, stress, sadness and loneliness at least seven percentage points higher than those of millennials, Gen X, baby boomers and the Silent Generation.”
Indeed, millennials are expected to be five times richer in 2030 than they were approaching the beginning of the decade, courtesy of the Great Wealth Transfer—but it hasn't been an easy road for them thus far.
Gen Z spending habits show they care the most about fashion, makeup and beauty products, technology, and their pets. This is perhaps due to their young age and few major bills.
Gen Z (or Generation Z) grew up with rapid digital changes. As teens, Gen Zers experienced the boom of smartphones, wearables, and virtual assistants, among other disruptive tech. This immersion makes them open to integrating new technology into their lives. Gen Z is already using AI in their daily lives.
Gen Z's Philanthropic Potential
The good news, however, is that this limitation doesn't deter them from contributing to causes they care about however they can. “[I]n 2022, Gen Z adults made an average of 5.3 donations — notably more than the 4.8 made by millennials and 4.7 made by Generation X.”
Older adults have a lot to say about Gen Z. A recent survey found that 40% of employers prefer not to hire Gen Z workers because they find them to be ill-prepared for the workforce. Another poll found Gen Z is having more difficulty achieving work milestones than their parents did.
Will Gen Z live longer?
The average life expectancy of baby boomers, Gen X, Millennials, and Gen Z are different. Compared to the 70-year life expectancy of baby boomers and the 85-year life expectancy of Gen X, Gen Z is predicted to have a life expectancy of over 100 years.
Gen Z Struggles With Mental Health
Social media, which many Gen Zers have used for most of their teenage and adult life, exacerbates these issues — no other generation has had such immediate and unfiltered access to the news for most of their lives, which can lead to stress, anxiety, and other mental health issues.
The Standard Route is what credit companies and lenders recommend. If this is the graduate's choice, he or she will be debt free around the age of 58. It will take a total of 36 years to complete. It's a whole lot of time but it's the standard for a lot of people.
| Generation | Average total debt (2023) | Average total debt (2022) |
|---|---|---|
| Gen Z (18-26) | $29,820 | $25,851 |
| Millenial (27-42) | $125,047 | $115,784 |
| Gen X (43-57) | $157,556 | $154,658 |
| Baby Boomer (58-77) | $94,880 | $96,087 |
Here's a look at how much nonmortgage debt Americans have by age group, and the average non-mortgage per capita debt for each group: 18-29-year-olds: $69 billion total, $12,871 average. 30-39-year-olds: $1.17 trillion, $26,532 average.
