Millenials are the most educated generation...yet the most broke

Millennials, born between 1981 and 1996, hold more college degrees than any previous generation in U.S. history.

Roughly 40% have earned at least a bachelor's degree. But despite their academic achievements, many are confronting a harsh economic reality: they're significantly behind previous generations when it comes to wealth building and financial security.

According to a report from the Federal Reserve, millennials earn about 20% less than baby boomers did at the same stage in life.

In 2013, the median income for a millennial was $40,581, compared to the $50,910 baby boomers earned in 1989 (adjusted for inflation).

That gap reflects more than just wage stagnation—it's a sign of deeper structural shifts in the economy that have left many millennials financially stranded.

The Cost of Education

The soaring cost of college has played a massive role in shaping millennials' financial outlook. Many entered adulthood burdened with record-high student debt, which has delayed major life milestones like buying a home, getting married, or starting a family.

As of 2024, the average student loan debt per borrower is over $37,000, with some owing significantly more.

Rising Costs, Stagnant Wages

While wages have largely remained stagnant for decades, the cost of living—especially housing, healthcare, and childcare—has skyrocketed. Millennials are often paying higher rent or mortgage rates in cities where job opportunities are concentrated, making it harder to save.

Add inflation and a volatile job market into the mix, and many millennials are living paycheck to paycheck—even with full-time jobs and advanced degrees.

Job Market Shifts

Unlike boomers who entered a relatively stable, unionized job market, millennials came of age during and after the 2008 financial crisis, which wiped out jobs, savings, and housing value. Many millennials were forced to settle for lower-paying jobs or gig work that didn't offer long-term security or benefits.

The rise of the gig economy and contract work has further destabilized income streams, even for those with strong educational backgrounds.

Generational Wealth and Inequality

Boomers benefited from a post-WWII economy that emphasized home ownership, pensions, and job security—advantages millennials weren’t offered. Meanwhile, wealth inequality in the U.S. has widened dramatically, with millennials owning just 5% of the nation's wealth in 2024, compared to baby boomers' 21% at the same age.

A Shift in Values

Faced with financial constraints, many millennials are shifting their values away from traditional markers of success. They're prioritizing mental health, work-life balance, remote flexibility, and social impact over high salaries.

Though wealth accumulation remains a challenge, millennials are rewriting what it means to live a fulfilling life in the face of financial adversity.