'80s Babies Are Officially the Most Broke Generation
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.