Much of the financial landscape has gotten harder for younger generations. Homes, college and child care are just a few of the major items that are more expensive than ever.
Despite this, a slight majority of adults say they're doing better financially than their parents were at their age, according to a recent LendingTree study. Just over half — 51% — of adults say they're in a better financial position than their parents were at their age.
That's a good thing; parents want their children to be successful. Nearly 90% of parents said it's very or extremely important that their kids become financially independent, according to Pew Research.
High earners and young people think they're outperforming their parents
The more money they make, the more likely people are to think they're better off than their parents, LendingTree found.
Among households earning $100,000 a year or more, 79% say they're doing better than their parents. Just 55% of those earning $50,000 to $74,999 a year and only 34% of those who earn $35,000 a year or less feel the same way.
But while confidence that you're doing better than your parents may grow with income, it doesn't necessarily grow with age.
In fact, Gen Zers are most likely to say they're doing better financially than their parents, with 57% of those ages 18 to 26 saying they're in a better position than their parents were at the same age. Here's the percentage of each generation that believes they're doing better than their parents:
- Gen Z: 57%
- Millennials: 52%
- Gen X: 43%
- Baby boomers: 54%
Each adult generation has dealt with its share of economic challenges. Millennials have notoriously received a lot of flack for their financial decisions — and have rightfully pointed out some of the conditions that hampered their generation, like graduating from college at the height of the Great Recession.
Gen X has had its challenges too. The generation saw its median household net worth cut nearly in half during the Great Recession, Pew Research finds. And though it had recovered that wealth by 2016, that setback, along with the Covid-19 pandemic's effects, continues to be a drag on Gen X's finances.
It carries the most non-mortgage debt, on average, of any adult generation, according to a LendingTree study from earlier this year. And the average Gen X household only has $40,000 saved for retirement, according to the National Institute on Retirement Security.
On top of that, Gen Xers are most likely to be part of the sandwich generation, according to Pew Research, which means they have financial obligations for their own children as well as their aging parents.
Interestingly, though, adults who have their own children are more likely to say they're doing better financially than their parents were at their age. Regardless of generation, just 43% of adults without kids say they're better off than their parents. That jumps to to 52% of adults with children under age 18 and 59% of adults with older kids.
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