Americans between the ages of 30 and 40 are the 'biggest losers' in American society

A quick Google search shows that millennials are often characterized as whiners who are quick to complain about their financial problems – but that’s not a fair assessment.

There’s a reason why millennials – generally defined as between the ages of 28 and 43 – are on shakier financial footing compared to previous generations.

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Recently facts from Allianz emphasizes the difference between millennials and boomers from an economic point of view.

It shows that while boomers have benefited from periods of strong economic growth, millennials have been hit by one financial crisis after another since they reached an age where this Finally possible to start saving and growing their wealth.

According to one study The American Journal of Sociology shows that the average millennial has 30% less wealth at age 35 than boomers at the same age.

Here’s how society’s “biggest losers” can move forward after multiple setbacks.

Why millennials got a raw deal

Millennials have had a number of economic factors working against them over the years.

During the Great Recession, which lasted from 2007 to 2009, millennials – many of whom were in their 20s at the time – were hit by high unemployment, making it harder to not only build a career but also save savings and keep up. student loan payments.

Millennials’ student debt wasn’t helped by the fact that college costs rose exponentially in the years leading up to their post-secondary education.

The Education Data Initiative reports that the average annual cost of a four-year public institution was $514 during 1973-1974, when many boomers were present.

But by the 2003-2004 academic year, when many millennials attended, that cost had risen to $4,587. This left millennials with high student debt, a struggling economy, and a slow economic recovery that would ultimately take years.

In October 2009, the national unemployment rate reached 10%, according to the Bureau of Labor Statistics.

However, three years later this was still 7.8%. In contrast, boomers who entered the labor market in January 1970 had an unemployment rate of just 3.9%. according to the Federal Reserve.

After the Great Recession, millennials found themselves stuck in an environment of low interest rates.

Not only did Federal Reserve interest rates fall to record lows during that crisis, but they remained stagnant for more than five years afterward, making it harder for millennials to grow their savings.

Interest rates were much more conducive to savings in the 1970s, allowing boomers to build cash reserves, facts from the Federal Reserve figures.

Although the pandemic affected people of all ages, millennials had been slowly working their way out of debt and advancing their careers when they were once again plagued by rampant unemployment and skyrocketing inflation.

Read more: The cost of living in America is still out of control – use these three “real assets” to protect your wealth today, no matter what the US Fed does or says

How millennials can get ahead

It’s not all doom and gloom for millennials. The good news is that they are likely further along in their careers at this point, giving them the opportunity to boost their income and savings.

Even today’s oldest millennials may have 20 to 25 years left in the workforce, giving them the opportunity to further their careers. IRA or 401(k) contribute and invest their money so that they can accumulate robustly lay eggs in time for retirement.

Personal finance celebrity Suze Orman said there is a simple way for younger generations to grow their wealth.

“Their priority is their youth, their priority is time,” Orman said told Money wise last year. “If there’s one thing the younger generation needs to understand, it’s that the most important ingredient in any recipe for financial freedom is… compound.”

For example, if you start saving $100 every month at age 35 — with an annual average return of 12% — you would have $300,000 by age 65, Orman explains.

While this is far below the estimated $1.46 million Americans need to retire comfortably, according to Northwestern Mutual is still a significant chunk of money that can help millennials make up for lost time during the times of financial crises they have experienced.

Another way American millennials can make up for lost time is through real estate. This powerful tool can be used whether you are a homeowner or choose to invest in one real estate investment trusts (REITs).

The latter is a popular investment instrument that acts as an alternative to purchasing real estate outright. It is beginner-friendly because it is possible to invest in REITs with small amounts.

Although millennials have had a tough time economically, their situation is not entirely hopeless. If economic conditions can turn in their favor, they have an excellent opportunity to make the most of their coming decades in the job market.

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This article provides information only and should not be construed as advice. It comes without any form of warranty.