Are Millennials The New Boomers? 3 Ways You Didn’t Know You Had It So Good
Written by
Laura Bogart
Edited by
Kristen Mae
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Sometimes, it feels like the war between generations is like rats in a sack. Gen X scoffs at Millennial earnestness, while Millennials turn a side-eye to Gen Z’s frivolity. And everyone is daggers-out for Baby Boomers.
Still, conventional wisdom holds that Millennials have the most cause for consternation. They survived the Great Recession, were saddled with massive college debt, and were blamed for their own economic hardships because of avocado toast and lattes.
However, closer examination shows that while Millennials might not have been the beneficiaries of the same economic boom times as, well, the Boomers, they still might have better financial experiences than Zoomers, or even older cohorts like Gen X and Boomers. It begs the question: Have Millennials overestimated their hardships while underestimating how good they have it in some ways?
Millennials Have More Knowledge
When LendingTree examined generational divides in personal finance, it found that Millennials were “better educated than their predecessors, allowing for better employment opportunities.” While acknowledging that The Great Recession of 2007 to 2009 disrupted the start of many Millennials’ careers, the report also found that there was a silver lining to the dark times.
According to Matt Schulz, LendingTree’s chief consumer finance analyst, those economic challenges conditioned Millennials to be more financially savvy. He’s quoted as saying:
“I think that the scars from the Great Recession and the pandemic have helped shape millennials’ views on money, forcing them to be more focused on their finances than other generations have had to be,” he said. “That focus has prompted them to learn more about money, get started with investing and savings earlier, become more entrepreneurial and make other financially focused moves that have helped set them up for success.”
Millennials May Have an Easier Time Paying Back Student Loans
Student loans are keeping Millennials and Zoomers from making the grade in many areas of adulthood, like homeownership. However, there are certain circumstances that could make the burden of debt a little easier for Millennials to bear than it is for Gen Z.
Isn’t it ironic (and yeah, we really do think) that Millennials generally borrowed student loans during the post-2008 period when interest rates were historically low — thanks to the very financial crisis that hit them hard in other ways? A little too ironic.
Those locked-in lower interest rates on federal loans are proving advantageous, especially when compared to the environment Zoomers face today. In recent years, rising inflation and tighter-fisted policies have driven interest rates higher, making new student loans more expensive for Gen Z borrowers.
Translation: Millennials may be paying less over the life of their loans — even if their original balances were bigger.
Millennials Are Growing Wealth Faster
Millennials seem to be putting their knowledge and rare financial opportunities to good use, especially when it comes to investing. Wealthfront, a data-driven investing platform, found that Millennials have been accumulating wealth more quickly than previous generations since the COVID-19 pandemic.
As reported in MarketWatch, Millennials using the platform grew their wealth by 137% over the past five years, compared with 76% for Gen X investors and 40% for Baby Boomers. The data also showed that Millennials deposited more money into their accounts, and at steadier rates, than other generations — even the ones thought to be more financially savvy.
It’s almost like living through a slew of “unprecedented times” taught Millennials that the only way out of the next one was to save and grow their money wisely.
No, not almost. It absolutely did.
Bottom Line
Millennials have weathered a lot of accusations of financial frivolity over the years — and at the same time, operated under the assumption that they’ve had it harder financially than younger generations. But they’ve also adapted, learned, and, in some cases, thrived.
Turns out, they’ve had it a little better than they thought.
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Sources:
- LendingTree, “Millennials in Better Financial Condition Than Previous Generations”
- MarketWatch, “Millennials are getting richer faster than previous generations. Here’s how they’re doing it”
