Making Millions From Millennials

YPulse’s insightful predictions, discussed below, are suggestive of a dramatic increase in millennial wealth in the coming few decades. While part of this phenomenon is normal in terms of the traditional family life cycle (i.e., most would expect to have more wealth at 55 than 35), YPulse points to four trends that will perpetuate millennial wealth growth:

One: They will start making major milestone purchases

It only makes sense that as millennials hit their 30s purchases will shift toward bigger ticket items such as homes and cars, as opposed to personal experiences and small pleasures. While YPulse’s own data suggests that some millennials may delay milestone purchases even a little further, these purchases are nevertheless are a top goal of most members of the group.

Two: Millennial spending is keeping the U.S. out of a recession

YPulse points out that as more millennials have set up their own households, they are comfortable spending while paying off debt. Given that millennials overtook Baby Boomers as the largest cohort in population in 2019 and  now spend more than any other group, this spending is critical to the long-term health of the economy. Fortunately, millennial spending show more signs of expanding than retreating.

Three: Millennials: the home buying market and it is “just beginning”

By 2018, millennials accounted for 37% of home purchases, the highest of any age cohort. With many still in their twenties and early thirties, there are surely many more home purchases ahead. It appears that the group, who tend to look for “good neighborhoods,” relatively short commutes and nice communities will be driving growth in housing markets for the next 20 years.

Four: Millennials stand to inherit money from the Baby Boomers

In spite of all too common derogatory remarks from some Boomers about Millennials “living in basements” and the like along with the “Okay Boomer” comeback from some Millennials, familial ties between these generations run deep. As more Boomers pass away in the next few decades, Millennials stand to inherit $68 trillion. In part as a result, YPulse notes that Millennials may end up as the richest generation in U.S. history. Of course there is also much reason to believe that large numbers of Millennials will prosper financially over time on their own as well. 

Collectively, these factors bode well for Millennial finances. And the future starts now.