In debt and scared Millennials compared to Gen Xers and Baby Boomers

In debt and scared Millennials compared to Gen Xers and Baby BoomersIn debt and scared Millennials compared to Gen Xers and Baby BoomersImagine taking a snapshot in time of Baby Boomers, Gen Xers and Millennials just as each generation was entering the workforce. On average, how would the total assets and debts compare? Thats the premise behind our newest visualization.We took a deep dive into some recentFederal Reservedata to investigate thedifferences in debt and assetsbetween Millennials, Gen Xers and Baby Boomers. First off, we broke down the types of assets each generation holds in aggregate, whether thats equity in a home, other financial assets like stocks, business assets, equity in a vehicle and other real estate. We then compared the total debt each generation carries on average in red across the bottom, letting you easily get an idea for the relative balance of assets and income for successive generations.Its important to bear in mind researchers have adjusted these number s for inflation. This lets us make a fair comparison, for example, of home values between several different decades. Interestingly enough, Millennials in 2016 on average had mora equity in their homes compared to Baby Boomers in 1989, but much less than Gen Xers in 2001. In other words, despite entering the job market right after the housing crash and their reputation fordelaying when they purchase a homefor the first time, Millennials are actually doing just fine as homeowners.Things get even more interesting in other asset classes. Millennials are much better savers than people from previous generations, averaging $18,800 in the bank compared to $16,800 for Gen Xers and a measly $6,600 for Baby Boomers. Part of the explanation for why is that previous generations tended to grow their wealth in the form of small businesses. In fact, according to theSmall Business Administration, young people today are several times less likely to start their own companies compared to other generati ons. Thats because the Great Recession discouraged risk taking in the minds of many Millennials, forcing them to be more conservative with their money.That being said, the total debt loads across each generation tell an interesting story too. Cars have gottenmuch more expensive, forcing people to put more of their paychecks toward building equity in a vehicle than ever before. Lots of Millennials also take outmassive student loansto fund higher education. And thats because states are routinelydecreasing allocationsfor public institutions, not to mention the increases to tuition atprivate schools. College is still seen as the best way toimprove future earning potential, even if lots of college grads end up in jobs thatdont require a degree. The debt load for Millennials istherefore higher at $84,600 than for Gen Xers ($79,400) and substantially more than Baby Boomers ($59,300).DataTable 1.1This article first appeared on HowMuch.