The age group of Millennials is 30 to 45 years old as of 2026.
There are a lot of opinions out there about Millennials and how they are making or breaking our economy.
Recent news headlines suggest that millennials are extremely frugal, thus killing consumerism. Others say millennials are ruining their chances of buying a home and taking on more debt by overspending on luxuries, lattes and avocado toast.
While overgeneralizing a select group is rarely accurate, in order to understand millennial spending habits and risks, we have to examine the actual age range and economic climate surrounding individuals called “Millennials.”
If you just want the basics, then Today’s millennials range in age from approximately 30 to 45 years old. Yes, these are not children, they are adults, and the oldest is 45 years old. Millennials were born between 1981 and 1996.
Many people now call the next generation Gen Z – those born between 1997 and 2012 (see our full article on the age range of Generation Z).
Let’s talk about the millennial age group a little more!
Who qualifies as a millennial and what is the scope of the millennial generation?
For years, there have been conflicting opinions about the actual age range of millennials. Some have said that people born between the early 1980s and the early 2000s are considered millennials, while the majority agree that those born between the 1980s and the mid-1990s are millennials.
In the past few years, most organizations have defined Millennials as the generation born between 1981 and 1996. This is indicated by sources such as: Census BureauPew Research, and more use. Other sources It may skew a little differently.
However, because the Census Bureau and major organizations have chosen a specific convention, we put the precise date range for Millennials as those ages 30 to 45 today—essentially today’s workforce. This is a very large group.
Millennials Years of birth: Between 1981 and 1996
Millennials are typically defined as those born before computers and cell phones became widespread. But it’s important to note that there are three groups of Millennials: those who graduated before the Great Recession, those who graduated during the Great Recession, and post-recession graduates. This has directly impacted the average millennial net worth.
Aside from technology and the 2008 recession, the events of September 11, 2001, also known as “9/11.” The most defining moment of a generation For millennials in the United States. T
Millennials tend to spend money on experiences rather than material possessions. Spending habits centered around “experience” have allowed the creation and growth of businesses like Airbnb, which are centered around avoiding the high costs of hotels.
Millennials are also willing to give up some basic luxuries in order to increase their money to spend on experiences using ride-sharing services such as Uber. Apart from ensuring safety while enjoying the nightlife, ridesharing services help reduce transportation costs while keeping in mind reducing the carbon footprint.
Millennials are also big side hustlers. They embrace a work-from-anywhere, anytime mentality, and are great at using the online economy to their advantage.
Common stereotypes about the financial habits of millennials
There are so many conflicting stereotypes surrounding the financial habits of millennials, that it remains a hot topic:
- Millennials are big spenders. Historically, the “younger” generation has always been viewed as frivolous and spending too much. This is not the first time that the older generation has pointed the finger at the younger generation. Some experts suggest that the combined rise in spending and debt is pushing millennials to move in with their parents.
- Millennials don’t save enough Millennials are actually good savers, saving more than 5% of their salaries for various reasons such as emergencies, large purchases, as well as retirement. The recession is likely to be a big motivating factor to save for the future. Recent studies by the Transamerica Center show that 75% of millennials are saving for retirement.
- Millennials don’t spend enough Many retailers complain that millennials are responsible for the decline of the retail industry and the closing of department stores. The majority of Millennials came of age during the Great Recession of 2008, and as a result, frugal habits were ingrained in them due to the fear and turmoil they faced during this financial crisis.
- Millennials are drowning in debt. Americans owe more than $1.8 trillion in student loans, and the majority of that debt belongs to millennials, according to a survey of 1,000 millennials conducted by ORC International. While Millennials may save their money, the majority of their income is spent paying off debt, depleting savings and lowering disposable income.
- Millennials are financially unable to afford a home. While Millennials are saving for retirement and their first home, debt makes it difficult for Millennials to purchase their first home right away. Aside from that, many millennials are waiting to buy their first home until they are financially stable, even before they get married. While high debt is one factor in delaying the purchase of real estate, many millennials have a desire to discover their true self and search for identity and meaning before settling down.
What’s interesting is that over the past few years we’ve seen a significant rise in the value of millennial wealth.
Millennials and student loan debt
This is directly related to whether most Millennials will go to college and, more importantly, whether they have completed a college education or not.
The risk of accumulating debt at an alarming rate is especially high for those who have not completed college because traditional jobs in the higher wage range generally require some college education. Meanwhile, many millennials He regrets Their pursuit of university education.
While some studies suggest that most Millennials have a good handle on student loan debt, the majority of Millennials have some of the highest rates of student loan debt in history.
Check out our study on average student loan debt by graduating class.
When it comes to money, millennials have some of the highest rates of student loan debt in history. The average millennial has more than $30,000 in student loans. Millennial student loan debt affects all of us because it has a direct impact on our economy.
Ultimately, these indebted students will see slower growth in their savings, causing further delays in starting a business, starting a family, or purchasing a home. Because the majority of these loans are federal loans, they will add to the total national debt.
Some millennials have resorted to desperate measures, accepting low-wage jobs in hopes of student loan forgiveness, including seeking work at Red Lobster in the false hope of eliminating student debt. There is a wide range of Volunteer programs That offer student loan debt reduction, such as Americorpsthe Peace Corpsand specific occupational loan forgiveness programs. If you are serious about resolving your student loans and have aspirations for a career in public service, Public Service Loan Forgiveness Training will be a great asset to help you gain and maintain eligibility while getting your debt under control.
The final word
Whether you believe Millennials are financially responsible or not, the economic climate has created fertile ground for an increasing amount of debt of all types, including student loan debt. While coming of age during a recession undoubtedly impacts your spending habits, we’ve seen enough evidence on both sides to suggest that millennials are financially responsible yet still saddled with significant debt.
