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Millennials Outpace Boomers in Wealth Growth
29 Nov
Summary
- Millennial wealth quadrupled from $3.94T to $16.54T between Q3 2019 and Q3 2024.
- Their millionaires increased 144% in five years, surpassing older generations.
- Consistent investing in low-cost ETFs and buying dips fuel millennial prosperity.
Contrary to stereotypes, Americans in their 30s and 40s, largely millennials, are experiencing a significant wealth boom. Federal Reserve data reveals their total wealth surged from $3.94 trillion in Q3 2019 to $16.54 trillion by Q3 2024, a fourfold increase. This growth significantly outpaces that of Gen Xers (58%) and Baby Boomers (42%) over the same period.
The rapid accumulation of assets is driven by strategic investment approaches. Millennials have demonstrated a consistent commitment to investing in low-cost, globally diversified Exchange Traded Funds (ETFs). They are adept at navigating market volatility, often viewing dips as buying opportunities, which aligns with strategies like dollar-cost averaging.
This financial success has led to a 144% increase in millennial millionaires within Wealthfront's user base over the past five years. While some wealth transfer from older generations plays a role, disciplined investment habits are key to millennials outperforming their predecessors in wealth creation and building future prosperity.
