Let’s clear one thing up—while some millennials are definitely the walking definition of the “broke college kid” we so often see portrayed in the media, other millennials are not. In fact, some are financially secure. A very select few are even millionaires.
If you’re confused or don’t believe us, it’s probably because your definition of the term “millennial” has been skewed. Millennials include anyone born between the years of 1980 and 1998, according to financial website The College Investor. While some millennials haven’t even graduated college yet, others are well into their thirties and beyond graduation! Generalizing such a large group seems difficult, but The College Investor gave it a shot by estimating the average net worth of these elusive millenials (Hint: It’s pretty darn low).
The financial site broke down the numbers by age. For a quick math lesson, net worth is just assets (savings, salary, investments) minus liabilities (debts). To no one’s suprise, the main liability in the study was student loan debt.
The median net worth was just $10,400. This seems pretty small, we know, but it makes sense. Students and grads often make entry-level salaries while they attempt to pay off loans. This debt is subtracted from hard-earned assets, often keeping those under 30-years-old “in the Red” (or with a negative net worth). According to TIME Money, student debt has almost doubled within the millennial generation. The average graduate of the Class of 2016 racked up over $37,000 in student loan debt, whereas the Class of 2003 grads only needed to repay an average of about $18,000.
The College Investor notes that young millennials are lucky because they have time on their side. In order to boost your net worth, the site recommends focusing on two main areas: boosting your income and eliminating debt.
“The fact is not everyone is average or above average when it comes to net worth,” writes Robert Farrington, a contributor for The College Investor. “But, knowing where you stand is incredibly important.” You’re probably not going to have the assets of Mark Zuckerburg upon graduation, but you only need to have $10,400+ in the bank after subtracting your debts to be in a better financial situation than the average millenial. Skipping the $5 coffee in the morning and saving aggressively could help you get there.