You can be on Entrepreneur’s cover!

Gen Z, Millennials Have Gained More Wealth Than Gen X, Boomers Since 2019 Thanks to This Popular Personal Finance Move The younger generations received larger stimulus checks during the pandemic — and put them to work.

By Amanda Breen

Key Takeaways

  • The total wealth of Americans under 40 increased by 80% to $9.5 trillion from 2019 to 2023.
  • The same age group saw the value of their financial assets soar by 50% in that period.
entrepreneur daily

Americans over 70 hold 30% of the country's wealth, per Bloomberg — but younger generations are also building fortunes of their own.

The total wealth of Americans under 40 increased by 80% to $9.5 trillion between the first quarter of 2019 and the third quarter of 2023, according to a study by the New York Federal Reserve reported by CNBC.

Related: This Indulgent Retirement Trend Is Popular Among Young Professionals — But Financial Planners Are Providing a Dose of Reality

And the most significant driver? That would be the stock market. According to the study, younger generations received larger stimulus checks during the pandemic and used them, in part, to purchase stocks.

Corporate equities and mutual funds made up 25% of the under-40 set's financial assets as of the third quarter of 2023 — up from 18% in 2019 — and the same age group saw the value of their financial assets soar by 50% in that period, per the research.

"This shift in portfolio composition toward equities likely reflects the fact that younger adults, being farther away from retirement, can afford to invest in risky assets at a higher rate than older adults," the study stated.

Related: 12 Off-the-Cuff Investing Tips Every Gen Z Entrepreneur Needs to Know

Research also suggests that Gen Z and millennials may have different approaches to balancing their portfolios than their older counterparts.

Across all generations, retirement investing accounts and individual stocks are the most common types of investments, The Motley Fool reported.

However, a survey from the outlet revealed that more Gen Z (59%) and millennial (63%) respondents think a high-performing portfolio should include more than five different companies or funds compared to 55% of Gen X and 50% of baby boomers.

Amanda Breen

Entrepreneur Staff

Senior Features Writer

Amanda Breen is a senior features writer at Entrepreneur.com. She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

This Dad Started a Side Hustle to Save for His Daughter's College Fund — Then It Earned $1 Million and Caught Apple's Attention

In 2015, Greg Kerr, now owner of Alchemy Merch, was working as musician when he noticed a lucrative opportunity.

Business News

Yes, You Can Buy a Foldable Tiny Home on Amazon — And Now It's Selling for Less Than $12,000

The waterproof and flameproof house was listed around $35,000 a few months ago.

Business News

This One Word Is a Giveaway That You Used ChatGPT to Write an Email, According to an Expert

"Delve" has increased its presence in written work since ChatGPT entered the scene.

Starting a Business

4 Common Mistakes That Will Spell Doom Your Ecommerce Business

It's hard to spot a success story before it happens, yet it's easy to tell if a business will struggle. With that in mind, here are the four most common mistakes people make that you should avoid when starting an ecommerce business.

Business News

This Futuristic Wearable Smartphone Alternative Projects a Screen on Your Palm — And It's Now Widely Available

Humane's Ai Pin fastens magnetically to clothing and becomes a voice-activated AI assistant that can make calls, send texts, take notes, and find answers to complex questions.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.