New data has unveiled a significant increase in household wealth for Americans under 40 since the start of the pandemic, with a rise of nearly 50 percent.

Highlighted by data from the Federal Reserve Board of Governors, this unexpected development reveals the remarkable improvement in the financial security of young Americans.

Young Americans' Wealth Grew by Nearly 50%

The analysis of Federal Reserve data reveals a remarkable 49% increase in household wealth among Americans under the age of 40. 

This group primarily consists of millennials, currently aged 28 to 43, and some Gen Zers, who are in their teens and up to age 27.

The data reveals that the average wealth of households under 40 and over 28 reached approximately $259,000 in the fourth quarter of last year. 

This increase occurred despite the challenges posed by escalating housing costs and ongoing inflation.

However, it was observed that older Americans had more financial resources compared to millennials, despite both groups experiencing similar increases in wealth during and after the recessions they encountered at a similar stage in life.

During the four years that subsequently followed the catastrophic financial event, citizens belonging to Generation X, who were between 27 as well as 42 years old when the Great Recession broke out, experienced a modest 4 percent increase in their wealth.

On the other hand, Baby Boomers, who were in their late twenties to early forties during the recession in 1990, experienced a significant 46 percent increase in their real wealth in the four years that followed.

The percentages achieved by the generation above Gen Z were significantly higher compared to the numbers achieved by the younger generation. According to Daily Mail, this older generation, born from 1981 to 1996, was between 23 and 38 years old just before the pandemic was declared in 2019.

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Young Americans' Average Wealth Grwoth

Based on a recent study, there are several factors contributing to the increase in wealth among young Americans. Here's the growth in the average value of assets owned by Americans under 40 between 2019 and 2023:

• Housing wealth: $22,000

• Amount of liquid assets: $9,000

• Estimated personal business value: $10,000

• Total value of assets, including stocks and mutual funds, is $31,000.

• Cost of durable goods, such as cars and appliances, is $7,000.

In addition, these young households experienced a decrease of $5,000 in their average non-housing debt, which includes credit card balances and student loans. 

CNBC said this decrease has contributed to an overall increase in their net worth.

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