The average net worth of Americans age 18-35 plummets 34% since 1996 – proving Millennials ARE worse off than their parents were at the same age

  • The average net worth of Millennials is less than $8,000 – the latest sign that the generation is doing far worse than their older cohorts, according to a new study
  • It represents a 34% drop since 1996 in the net worth of Americans ages 18-35 
  • The authors attribute the disparity to the fact that Millennials are facing rising student loans, higher rents and skyrocketing health costs 
  • Now, people in their 20s and 30s spend roughly 17% of their pay check on education, health care and rent – up from 12% 10 years ago, researchers said
  • The findings are counter to perceptions about Millennials – who are often characterized as over-spenders who are delaying home buying and having kids

By Dailymail.com Reporter

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The average net worth of Millennials is less than $8,000 – the latest sign that the generation is doing far worse than their older cohorts, according to a new study.

It represents a 34 percent decrease since 1996 in the net worth of Americans ages 18-35, according to the report by Deloitte, an accounting and professional services firm.

The authors attribute the disparity to the fact that Millennials are facing rising student loans, higher rents and skyrocketing health costs.

The average net worth of Millennials is less than $8,000 ¿ the latest sign that the generation is doing far worse than their older cohorts, according to a new study by Deloitte (file photo)

The average net worth of Millennials is less than $8,000 – the latest sign that the generation is doing far worse than their older cohorts, according to a new study by Deloitte (file photo)

'The vast majority of consumers are under tremendous financial pressure,' said Kasey Lobaugh, Deloitte's chief retail innovation officer and lead author of the study in an interview with The Washington Post. 'That is particularly true for low-income Americans and Millennials.'

The core of the problem is down to wages not keeping up with rising costs. The price of a college education has risen 65 percent in the past 10 years. During that same period, food costs have gone up 26 percent, health care costs increased 21 percent and housing costs have risen 16 percent.

Now, people in their 20s and 30s spend roughly 17 percent of their pay check on education, health care and rent – up from 12 percent 10 years ago, according to the report.

And Millennials aren't spending more than older generations did at their age on eating out and going to bars – that type of discretionary spending has remained consistent over the past decade, accounting for about 11 percent of income.

The findings are counter to perceptions about Millennials – who are often characterized as avocado toast ordering over-spenders who are ruining America by delaying home buying, marriage and having children.

'The narrative out there is that millennials are ruining everything, from breakfast cereal to weddings, but what matters to consumers today isn't much different than it was 50 years ago,' Lobaugh told The Post. 'Generally speaking, there have not been dramatic changes in how consumers spend their money.'

While retail spending in the U.S. has risen roughly 13 percent since 2005, most of that is due to population growth rather than consumers actually dropping more money on goods and services.

America is also home to a growing wealth divide, with the richest Americans (those making $100,000 or more per year) seeing their incomes grow 1,305 percent more than those making less than $50,000 annually.

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