The average millennial has an average net worth of $8,000. That's far less than previous generations

Economics
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Millennials are doing far worse financially than generations before them, with student loans, rising rents and higher health care costs pushing the average net worth below $8,000, a new study shows.

The net worth of Americans aged 18 to 35 has dropped 34 percent since 1996, according to research released Thursday by Deloitte, the accounting and professional services giant. This demographic is paying more for education and such basics as food and transportation while incomes have largely flatlined.

“The vast majority of consumers are under tremendous financial pressure,” said Kasey Lobaugh, Deloitte’s chief retail innovation officer and lead author of the study. “That is particularly true for low-income Americans and millennials.”

The growing gap between the nation’s wealthiest residents and everybody else, he said, is affecting the way consumers spend.

Education expenses have climbed 65 percent in the past decade. Food costs have jumped 26 percent, health care is up 21 percent, housing jumped 16 percent and transportation rose 11 percent. And there are now expenses that most consumers didn’t have to account for 20 years ago, including smartphones and data plans.

Today’s 20- and 30-somethings spend about 17 percent of their incomes on education, health care and rent, compared with 12 percent a decade ago, the study found. Discretionary spending, which includes dining out, alcohol and furniture, has remained largely flat, at about 11 percent of total income.

“Only 20 percent of consumers were meaningfully better off in 2017 than they were in 2007, with precious little income left to spend on discretionary retail,” the study found.

percent and transportation rose 11 percent. And there are now expenses that most consumers didn’t have to account for 20 years ago, including smartphones and data plans.

Today’s 20- and 30-somethings spend about 17 percent of their incomes on education, health care and rent, compared with 12 percent a decade ago, the study found. Discretionary spending, which includes dining out, alcohol and furniture, has remained largely flat, at about 11 percent of total income.

“Only 20 percent of consumers were meaningfully better off in 2017 than they were in 2007, with precious little income left to spend on discretionary retail,” the study found.

https://www.sfgate.com/business/article/The-average-millennial-has-an-average-net-worth-13909188.php

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Consumerism caused this. Vapid millennials can’t help themselves. The occasional splurge is fine, but a routine of buying crap to feel like you’re “part of something” is not.

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Rising rents are the fault of states, counties and cities refusing to reasonably control price gouging on the part of rental landlords who are making a killing off imposing virtual poverty on those who can’t afford to buy a house – all of which is caused by America’s failure to enforce its borders, causing a huge spike in population, mostly third world, who move into the lower bracket of rental units with their multiple families. Fuck students. Fuck young couples. Fuck singles. Fuck the elderly on fixed incomes.

Socialism rules the borders, carpet bagger Capitalism rules the rents. This country is fucked and going down the tubes six ways from Sunday.

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These studies never show the median, only the mean. They need to show histograms. I bet there are a lot of outliers-- trust fund babies and potentially illegal immigrants skewing data points.

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Pull out of the analysis the millenials who got worthless degrees. Then recompute.

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Or so your prayer goes… because people like you dream of climbing on to the top of a smouldering post apocalyptic heap. That’s the only way you will ever say “I made it”.

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Well I am happy to know that the average redneck is doing slightly better than the average millenial. Here I am using text to talk on my Straight Talk wireless I just refilled at Wal-Mart. Maybe if they quit buying brand-new thousand dollar phones every few months and made their coffee at home instead of going to Starbucks they might be okay.

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Judging by your picture…you are a millennial. Judging by your statement on net worth…this study appears to have a degree of accuracy.

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Judging by your picture, you might be a tranny.

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Sarcasm at its finest

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That’s going to go well for the next generation. They will probably be far worse than the millennial. By that time, I am sure they will be living in their parents’ basement - just as the millennial are doing now. Lol :smiley:

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If an individual purchases the place you live he has to pay taxes and maintenance on that property. He also needs to earn a profit which is determined largely by supply and demand.

If the going rate is $1,200.00 for a 2/2 and he charges $1,500.00 then he isn’t going to get many bites… Until the going rate becomes $1,500.00 because there is nothing left at $1,200.00.

You can pick up a foreclosure for a song and spend some sweat equity fixing it up and reselling it. If you can save enough to put a good chunk of change down to buy it. If not, then you can gather some people together to invest and split the expenses and equity when it is sold. It is a hard way to start, but it has been and can be done.

You continue to build on that. You become smarter, sharper about who you partner with. Eventually, you build the capital to not need investors.

This is how people build things. It is slow, it is painful but also rewarding. But you have to stick with a goal and be focused. It can be done. It has been done.

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