Millennials are making more money than any previous generation... so why are they less wealthy?
Business Insider recently reported that millennial households are out-earning Gen X and boomers at the age of 40 than when the two groups were that age. Further, when boomers were roughly the same age as millennials now, they owned about 21% of America's wealth. Today, millennials own about 5%.
Answer: Inflation. Recent findings show that wages have increased by 19% in the US since 2006. The cost of living has dramatically outpaced wage increases. Then, throw in things like college tuition, healthcare, and childcare-- followed by two economic recessions. Not really a recipe for success.
Upside (maybe?) - older millennials have gained ground in building wealth. In 2016, they had a wealth deficit of 34%; yet by 2019, it narrowed to 11%. Has the pandemic slowed this down? It is not clear yet.