Millennials, Gen Z getting used to living on a financial cliff
Many young adults are pulling in bigger paychecks, but much of their spending power is going to short-term purchases like groceries and vacations, not savings.
Young adults’ wealth is growing, but they’re still living and spending in the here and now. Many feel they don’t have a choice.
The net worth of Americans ages 18-39 surged by 80% from the start of 2019 to the third quarter of last year, Federal Reserve Bank of New York research shows, blowing past the rates for older generations.
But much of the gains are from investments that climbed alongside stock markets and largely don’t translate into disposable income. And while many millennials (ages 28-43, according to Pew Research) — and plenty of their Gen Z near-peers (12-27) — are pulling in bigger paychecks, they’re still pumping that cash into pricier everyday expenses, from essentials like rent to luxuries like leisure travel.
We want to enjoy our lives, but we’re always waiting for the shoe to drop.
Hala Easmael, 32, Philadelphia
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