Millennials, usually understood as people born between the early part of the 1980s and late 1990s, are widely regarded as the most educated generation ever.
New research indicates that while millennials are poised to be the most educated generation in history, their financial security and income paint a more complicated picture when contrasted with earlier generations. Far from being the least secure financially or the lowest-earning generational group, millennials have notable achievements and specific challenges that define their economic experience.
However, this educational landmark creates a paradox. Although they have successfully achieved their education, millennials face grave financial uncertainty and earn less proportionately than their predecessors, such as Generation X.
Education
Millennials are setting unprecedented records in educational attainment. According to a 2019 report from the Berkeley Institute for the Future of Young Americans, the percentage of 29-year-olds with at least a bachelor’s degree has doubled over the past six decades—from 17.6% in the early 1970s to 35.3% in recent years.
As of 2018, millennials had already surpassed Generation X as the generation with the highest number of college graduates, and this trend continues as younger millennials complete their education, solidifying their status as the most educated generation in American history.
However, this achievement comes with a steep cost. Millennials have borrowed more for their degrees than any previous generation, contributing to over $1.48 trillion in outstanding student loan debt in the U.S. as of 2018. This debt burden, which exceeds credit card debt by nearly one-and-a-half times, creates unique financial pressures for the generation.
Financial Stabilityality
Contrary to popular belief, millennials may be in a stronger financial position than previous generations compared to similar ages. A 2025 LendingTree study found that millennials (ages 26 to 41 in 2022) had a median net worth of $84,941. In contrast, Gen Xers (ages 27 to 42 in 2007) had a median net worth of $78,333, and baby boomers (ages 25 to 43 in 1989) had $58,101, adjusted to 2022 dollars. This means millennials’ net worth is:
- 8.4% higher than Gen Xers’ at a similar age
- 46.2% higher than baby boomers at a similar age
Additionally, 99.3% of millennials owned assets in 2022, compared to 97.5% of Gen Xers and 93.8% of baby boomers at similar ages, indicating greater financial engagement. However, millennials also carry more debt, with 88.1% having some form of debt, slightly higher than Gen X (86.9%) and baby boomers (85.8%).
The Student Debt Divide
Student loan debt creates a stark divide within the millennial generation. Research analyzing Federal Reserve data shows that millennial households with student debt have:
- An average net worth of $29,087, compared to $114,376 for those without student debt
- 46% less in savings and checking accounts
- $18,745 less in retirement savings
The wealth gap between those with and without student debt has widened dramatically—from 13% in 1989 to 75% in 2016—highlighting a challenge previous generations did not face to the same extent.
Earnings: Higher Than Perceived
The data do not support claims that millennials are the worst-paid generation. Millennials born in 1989 earned a median cumulative income of $446,570 between 2014 and 2023 (ages 25 to 34). In comparison, at the same ages:
- Gen Xers earned $417,700
- Baby boomers earned $362,330
Adjusted to 2023 dollars, this represents a 6.9% higher cumulative income for millennials than Gen X and a 23.2% advantage over baby boomers. While 2017 data showed that the median millennial earned less than the median Gen Xer or baby boomer across all 50 states, this reflects different career stages rather than generational opportunities, as older workers typically earn more due to career advancement.
Unique Challenges
All their economic benefits notwithstanding, millennials have significant challenges. Home prices are significantly higher: for millennials aged 35 in 2024, the median rent is $1,481, $1,251 for Gen X aged 35 in 2008, and $1,174 for baby boomers adjusted for inflation. That’s a 26.1% jump over boomers, making homeownership harder.
In addition, millennials have also experienced significant economic shocks, such as the Great Recession and the COVID-19 pandemic, which have impacted their financial paths. These shocks have made saving and accumulating wealth more challenging, especially for those with existing student loans.
A Nuanced Financial Story
The study presents a multifaceted image of the financial condition of millennials. Millennials are the best-educated generation and have greater net worth and incomes than earlier generations did when they were the same age. But they have never faced challenges like those of escalating housing costs and unprecedented amounts of student debt. The financial history of the generation will be one of contradictions—record progress and significant challenges, with wide gaps between borrowers and non-borrowers of student loans.
Overall, millennials are not the most monetarily insecure or underpaid generation. Instead, they have a special economic context defined by their education investments and the weight such investments carry.
Key Data Across Generations
| Generation | Birth Years | Age Compared | Graduate Earnings Premium |
|---|---|---|---|
| Generation X | Born in 1970 | Age 26 | 19% more than non-graduates |
| Millennials | Born 1989-1990 | Age 25 | 11% more than non-graduates |
| Financial Metric | Millennials | Comparison to Older Generations |
|---|---|---|
| Financial Literacy Rate | 24% basic, 8% high (NEFE, 2017) | Lower than 63% for ages 36-50 (GFLEC) |
| Debt Levels | Avg. $100,906, 53% feel too much (Investopedia) | Higher than Gen X trends |
| Emergency Funds ($2,000 in 30 days) | 48% cannot cover (NEFE) | Worse than older cohorts |
Not everyone attributes millennials’ woes to the same root reasons. Some believe economic factors—housing expenses, inflation, and an evolving economy—trump schooling as reasons for their travails. Others warn against making sweeping generational conclusions, acknowledging variation among young people. Nonetheless, the most accepted research acknowledges millennials’ impressive educational gains but identifies structural limitations holding them back from financial success.
Millennials are the most educated generation, with higher college degree attainment and, in most areas, greater financial literacy. However, that education has not shielded them from economic distress.
High debt amongst students, low personal savings, and an attenuated wage premium over Generation X make them arguably the least secure and lowest-remunerated generation on a pre-qualification basis.
While arguments continue as to whether economic drivers or individual dynamics are more responsible, the figures are specific. For millennials, education still has not achieved the financial security their parents had.
