For many years, it’s been conventional wisdom that children will enjoy a better standard of living than their parents.
This axiom, however, is no longer a given.
On many different fronts, Millennials are faring worse financially than their parents. A report conducted by Young Invincibles and funded by the Ford Foundation illustrates a variety of ways in which Millennials have not kept up with their parents.
Here are some key measures illustrating that the 75 million Millennials, which make up the greatest share of the workforce, have fallen behind:
The report suggests why Millennials have been lagging behind their parents’ generation.
“These findings uncover that Millennials have been set back significantly, by not just the Great Recession but by decades-long financial trends, resulting in major generational declines in financial security between Millennials and Baby Boomers when they were the same age,” said Tom Allison, Deputy Director of Policy and Research for Young Invincibles.
“Millennials make up the greatest share of the workforce and the largest generation in history, so in many ways the situation facing young adults today forecasts the financial challenges ahead for the nation.”
Even though Millennials may be facing more financial headwinds than previous generations, they certainly have plenty of time and resources to play catch-up. By developing smart investment and savings habits early on, millennials can change the course and prosper just as their parents’ generation did.