In the past, older generations used to criticize millennials for overspending on avocado toast and iPhones. It turns out that they may have better financial practices than previously thought.
Since the start of the COVID-19 pandemic five years ago, millennials have been acquiring wealth more quickly than prior generations, according to data from the investing website Wealthfront.
Over the previous five years, the wealth of millennials on the site increased by 137%. During the same time span, baby boomers’ wealth increased by 40%, while Gen X investors’ wealth increased by 76%. The average millennial client of Wealthfront had $45,600 invested and saved as of January 2020. That amount has been increased to $108,130.
Additionally, Wealthfront reported that there were 144% more millennial millionaires on the platform. The number of Gen X millionaires increased by 31% throughout this period.
“How millennials invest is the main element that we observe influencing their financial performance. At their current age, millennials own more stocks than earlier generations did. Because millennials are investing using strategies that have a greater risk-adjusted return, wealth has accumulated more quickly. “Most millennials understand that passive investing is the best strategy for long-term wealth generation and aren’t interested in risking their hard-earned money by trying to beat the market,” Wealthfront CEO David Fortunato told MarketWatch.
Despite being based on a single platform, this data, which originates from over a million Wealthfront clients, has limits. Real estate holdings, 401(k)s, employee equity incentives, and external investment accounts are not included in the 137% increase in millennials’ assets.
However, external data also indicates that millennials’ net wealth is increasing more quickly. The Federal Reserve estimates that between the third quarter of 2019 and the third quarter of 2024, the combined net worth of millennials in the United States about tripled, rising from $3.9 trillion to just under $16 trillion.
When it comes to their real estate assets, millennials have also caught up. The Wall Street Journal claims that between 2020 and 2024, the value of millennials’ real estate increased by $2.5 trillion. Millennials are increasing their assets at quicker rates, despite the fact that older generations still own more real estate and total net worth. According to mortgage data connected to Wealthfront, property values rose by over 40% for millennials during the previous five years, compared to 33% for Gen X and 29% for baby boomers.
Members of Generation X were born between 1965 and 1980, whereas Millennials were born between 1981 and 1996. In contrast, boomers were born between 1946 to 1964.
Fortunato added that millennials have amassed riches because they are aggressive savers.
“The millennial savings rate is substantially greater than the savings rate of earlier generations when we look at the savings rate by age group. As millennials continue to advance in their jobs and amass wealth, we anticipate seeing this trend become even more noticeable in the years to come,” he stated.
For millennials, who collectively have experienced financial difficulties, all of this is wonderful news. After starting their jobs during the recession of 2007–2009, many have had to contend with issues such as student loan debt, stagnant wages, a costly housing market, the pandemic’s consequences, and elevated inflation.
“Every generation is shaped by the broader economic circumstances they grow up with, and this is no different for millennials,” Fortunato stated. “I graduated from college in 2008, much like a lot of millennials who were affected by the Great Recession. My approach to money has been impacted for a long time by entering the workforce amid a worldwide recession. In addition to showing me that the market will eventually rebound, it underlined how crucial it is to be financially ready for unforeseen circumstances.
The idea that millennials may have developed sound financial practices in spite of these obstacles is supported by Wealthfront statistics. At the start of the pandemic, the company observed that millennials were still making deposits into their accounts at more consistent rates than older generations. Additionally, even though Gen X investors are nearing retirement, millennials built their retirement assets more quickly than Gen X investors. While Gen X IRA balances increased by 52% between March 2020 and February 2025, millennial IRA holdings increased by 112%. Both increased donations and market appreciation were to blame for this.
This demonstrates the resilience of millennials, which is primarily a result of the difficulties they have faced. Millennials have benefited from significant market growth over the past five years thanks to their resilience and dedication to long-term investing, according to Fortunato.
