Money

'80s Babies Are Officially the Most Broke Generation

Blame the housing market.
Comments

Sorry, '80s babies. You are officially the most in-debt generation of Americans right now.

A new report from the Federal Reserve Bank of St. Louis tracked the wealth of different generations over time and found that those born between 1980 and 1989 were worth 34 percent less (or $12,000) than expected for their age in 2016. People born in the '60s and '70s weren't doing too great in terms of wealth in 2016, either—11 percent and 18 percent below their targets, respectively—but older Millennials are the worse off financially by a long shot.

Now, before the Olds start in on their favorite past time, bashing their youngers, let's look at the context to all this debt. When the housing bubble burst, older generations of home owners were hit hard, but as real estate regains value post-Great Recession, they've been able to make up for some of those losses.

But many of these '80s kids went into the recession, and its aftermath up to 2016, without owning homes. Their debt instead comes in the form of student loans, auto loans, and credit card debt, all assets that have not "appreciated rapidly during the last few years—such as stocks and real estate," the Fed explains.

For that reason, these Millennials face a "formidable challenge" in regaining lost wealth. On an optimistic note, they're better at saving money than they get credit for, the report found, and they have time and better education on their side.

Well, there's always inheritance.

This story originally appeared on Esquire.com.

* Minor edits have been made by the Esquiremag.ph editors.

Comments
View More Articles About:
About The Author
Sarah Rense
View Other Articles From Sarah
Comments
Latest Feed
 
Share
The draft federal Constitution proposes a lot of changes that have nothing to do with federalism.
 
Share
A whole lot has changed, not least their paychecks.
 
Share
A study picked through data from 47,000 films to work out which titles and actors cast the longest shadow
 
Share
Co-founders Mike Concepcion and Omar Quiambao share a candid account of the collaborative process with the Three Stripes.
 
Share
You deserve an award if you've seen them all
 
Share
Actress Angel Aquino set fire to the internet this year with a clip from her latest movie, 'Glorious'. She isn't online enough to enjoy it, but that's fine.
 
Share
This comes after a string of gender-related violence against women in campuses in recent months.
 
Share
Congressmen have been filing bills for the regulation of motorcycles for hire for over a decade.
 
Share
In the meantime, GrabRewards users can book (almost) free jeepney and P2P rides.
Load More Articles
Connect With Us