Yahoo Finance 3 Reasons Millennials Have the Fullest Wallets Post-Pandemic
When the COVID-19 pandemic hit, it affected American generations differently. For millennials — those born between 1981 and 1996 — the pandemic offered a change in workplace dynamics and opportunities to use their unique skills to their financial advantage.
Learn More: How Much Does the Average Middle-Class Person Have in Savings?
Find Out: 4 Genius Things All Wealthy People Do With Their Money
With pandemic restrictions in place, many millennials found themselves navigating a different, yet similarly turbulent, economic climate as they did during the 2007-2008 financial crisis. However, this time around, millennials have seized the favorable circumstances provided by the strong economic recovery coming out of the pandemic.
Although older Americans are still far wealthier than their younger counterparts, millennials have managed to increase their financial security and their generation has experienced the fastest wealth growth of any group since the onset of the pandemic. According to the Center for American Progress, the average household wealth for Americans under 40 increased 49% — to $259,000 — from the fourth quarter (Q4) of 2019 to Q4 of 2023.
While many American millennials were helped greatly by student loan repayment pauses, stimulus relief checks and enhanced unemployment benefits, those assistances aren’t the real reasons millennials found financial success during and after the pandemic.
Several factors have contributed to the financial success of many millennials. Here are three key reasons:
Wealthy people know the best money secrets. Learn how to copy them.
1. Millennials Are Financially Cautious and Curious
Despite younger generations’ tendencies toward “soft saving” and “doom spending,” millennials found themselves saving more and spending less on non-essential items such as dining out, entertainment and travel during the pandemic, as the job market shifted to include flexible remote work and an expanded gig economy. In 2020, the prospect of an uncertain economy was nothing new to most millennials.
“As they (millennials) entered the workforce at a time where employment levels were low and their income was low in comparison to their cost of living needs, it left them with less money than more costs,” says CEO and founder of public relations and communications agency for financial technology and investment firms, Vansary, Liang Zhao. “Because they have seen financial uncertainty, they are avid savers and cautious.”
Indeed, this forced lifestyle change led to a significant increase in savings for many individuals within this generation. Without the ability to spend money on typical expenses, millennials were able to build up their savings accounts and establish healthier financial habits.
However, Zhao notes that millennials are also “financially curious,” and indeed millennials are more financially literate than previous generations, partly due to the abundance of online resources and financial education platforms. The opportunity to capitalize on market trends paid off handsomely for many millennials.
2. Millennials Are Equipped To Pivot in the Face of Adversity
Many millennials used the pandemic as an opportunity to start their own businesses, leveraging digital platforms and the increased demand for online services. Many also chose to invest in themselves, recognizing job market shifts and their place within them. Faced with the economic downturn of the pandemic, Alexandria Agresta chose to see the situation “as a massive opportunity for my business.”
“I pivoted my services, revamped my marketing message to be relevant to what was going on, and went full force into the storm instead of away from it,” says the “Thought Leadership Expert,” TEDx Speaker and motivational DJing speaker. “This agility benefited me greatly as I had a record-breaking revenue month in April 2020, and went on to experience unparalleled success during a time when we were being told things were on the decline.”
3. Millennials Are Tech Savvy Survivors
As Zhao tells GOBankingRates, millennials were “the first generation where computers and tablets were everyday tools in school. Because they learned how to learn with the help of technology, they are more active in the digital world overall – both on a personal and professional level.”
Having access to budgeting apps, investment platforms and other fintech solutions (and knowing how to use them to their advantage) enabled millennials to fine tune their financial management and investment strategies for a post-pandemic world. For example, millennials were early adopters of cryptocurrencies, and the dramatic rise in the value of assets like Bitcoin and Ethereum provided substantial returns for those invested.
“Millennials have a unique advantage in the post-pandemic world due to their tech-savviness, ability to process information quickly, and their adaptive approach to change,” states Agresta. “This combination positions them well to navigate and thrive in the evolving business landscape. Being a millennial leader and business owner myself, I constantly leverage my tech skills and access to vast information thanks to the internet to stay ahead of trends and pivot quickly when needed.” I don’t get attached to any one way of doing things because the world is changing so rapidly. This adaptability and optimism towards change have been the key to my success.”
You’ll often read that millennials are the unluckiest generation, having their adult lives disrupted by successive economic crises as they’ve entered the workforce. However, the “Net Generation” is taking it all in stride, becoming more confident in their abilities and not only surviving economic stresses, but growing their financial knowledge and wealth amid them.
“The pandemic was a forcing function for many where the majority of the workforce globally transitioned to work from home, where digital meant everything and jobs became less secure,” says Zhao. “Unfortunately and fortunately, these shifts weren’t necessarily new to many millennials as they grew up during a period of rapid technological advancement and economic uncertainty.”
Agresta sees this as a generational strength rather than a barrier to success. “Millennials have grown up in an era of constant change and turbulence, which has honed their ability to adapt quickly in the face of adversity,” she says. “Where others see obstacles, Millennials see opportunity. This resilience has become their greatest asset in navigating and succeeding in the post-pandemic world.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 3 Reasons Millennials Have the Fullest Wallets Post-Pandemic
