Here's What's Driving the Gen Z and Millennial Self-Made Millionaire Trend
The opinions expressed by entrepreneurs contributors are their own.
The media paints a very bleak picture when it comes to the financial prospects of young people. But there is another story that needs to be told - that of a new generation of self-made.
Yes, Millennials and Gen Z face unique challenges. They come of age in a time of economic uncertainty and growing inequality. But make no mistake, they are also a generation that is taking its destiny into its own hands. From savings and spending habits to side activities and investments, today's youth are determined to build a better future for themselves.
And they succeed. Despite the challenges they face, more and more young people are becoming millionaires. In fact, there are now well over 600,000 millennial millionaires in the United States alone. In the United States, the number of Millennials and Gen Z millionaires has doubled in the past year, and many more are on the way with higher salaries.
What is driving this trend? A combination of factors, including increased access to information, technology and capital. But the most important thing is a change of mentality. Young people today are not just waiting for handouts or hoping for the best. They take matters into their own hands.
Think of the "Gen Z VCs", a group of 14,000 young people in the venture capital industry. Or the 20-somethings who take advantage of sharing to earn six-figure incomes. These are just a few examples of a new generation of go-getters who are rewriting the rules of success.
Related: The Necessary Money Management Guide for Young Adults
Young people save earlierOne of the most important factors in building wealth is to start saving early. And it's something that millennials and Gen Z are doing in droves. A recent study found that 35% of Gen Zers plan to start saving for retirement in their 20s, and 71% plan to pay for their education with income from work.
In addition, young people are increasingly aware of where they are investing their money. They also don't use traditional solutions: many invest in alternatives such as peer-to-peer lending and cryptocurrency, and 94% use online banking.
Of course, there is always a risk that things will go wrong. But by taking an active role in their finances, young people are setting themselves up for a bright future.
They are also rethinking the debtIn recent years, much has been said about the "millennium debt crisis". And it's true that student loan debt is a huge burden for many young people, but instead of giving up or declaring bankruptcy, millennials are finding creative ways to manage their debt.
For example, a LendingTree study of over 340,000 users showed that Millennials reduced their average debt by $9,117 between 2019 and 2021, while Gen Z reduced their debt by $2,500. By comparison, baby boomers increased their debt by $8,848 over the same period.
Related: How 15 People in Their 20s Built Million-Dollar Businesses
They build side hustlesIn the gig economy, side activities are increasingly becoming the norm. And no...
The opinions expressed by entrepreneurs contributors are their own.
The media paints a very bleak picture when it comes to the financial prospects of young people. But there is another story that needs to be told - that of a new generation of self-made.
Yes, Millennials and Gen Z face unique challenges. They come of age in a time of economic uncertainty and growing inequality. But make no mistake, they are also a generation that is taking its destiny into its own hands. From savings and spending habits to side activities and investments, today's youth are determined to build a better future for themselves.
And they succeed. Despite the challenges they face, more and more young people are becoming millionaires. In fact, there are now well over 600,000 millennial millionaires in the United States alone. In the United States, the number of Millennials and Gen Z millionaires has doubled in the past year, and many more are on the way with higher salaries.
What is driving this trend? A combination of factors, including increased access to information, technology and capital. But the most important thing is a change of mentality. Young people today are not just waiting for handouts or hoping for the best. They take matters into their own hands.
Think of the "Gen Z VCs", a group of 14,000 young people in the venture capital industry. Or the 20-somethings who take advantage of sharing to earn six-figure incomes. These are just a few examples of a new generation of go-getters who are rewriting the rules of success.
Related: The Necessary Money Management Guide for Young Adults
Young people save earlierOne of the most important factors in building wealth is to start saving early. And it's something that millennials and Gen Z are doing in droves. A recent study found that 35% of Gen Zers plan to start saving for retirement in their 20s, and 71% plan to pay for their education with income from work.
In addition, young people are increasingly aware of where they are investing their money. They also don't use traditional solutions: many invest in alternatives such as peer-to-peer lending and cryptocurrency, and 94% use online banking.
Of course, there is always a risk that things will go wrong. But by taking an active role in their finances, young people are setting themselves up for a bright future.
They are also rethinking the debtIn recent years, much has been said about the "millennium debt crisis". And it's true that student loan debt is a huge burden for many young people, but instead of giving up or declaring bankruptcy, millennials are finding creative ways to manage their debt.
For example, a LendingTree study of over 340,000 users showed that Millennials reduced their average debt by $9,117 between 2019 and 2021, while Gen Z reduced their debt by $2,500. By comparison, baby boomers increased their debt by $8,848 over the same period.
Related: How 15 People in Their 20s Built Million-Dollar Businesses
They build side hustlesIn the gig economy, side activities are increasingly becoming the norm. And no...
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