Millennials Slated To Be The Richest Generation In History, But They Are 'Very Ill-Prepared.' How Will They Manage?

Older generations often perceive millennials as lazy and more interested in spending money on avocado toast than saving for a house deposit. However, millennials are on track to become the wealthiest generation ever, thanks to an estimated $90 trillion wealth transfer over the next 20 years.

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According to CNBC, this significant handover will come from the Silent Generation (born between 1928 and 1945) and baby boomers (born from 1946 to 1964) as they pass on their assets. The big question is: Are millennials prepared to handle this influx of money?

Salvatore Buscemi, co-founder and managing partner of Brahmin Partners, believes millennials are "very ill-prepared" to manage this wealth. He argues that by the time they inherit, they’ll be in their 40s and may lack the drive to start businesses or invest wisely.

Buscemi points out that millennials haven't been pushed to develop the necessary financial skills. "They don't have the skill sets earlier because they never had to — they were never pushed," he says. As people age, they are generally less inclined to learn new skills, posing a significant hurdle for millennials.

However, millennials have faced tough financial challenges. Many entered the job market during the Great Recession, impacting their earnings. They also contend with student loans, high housing costs, and rising living expenses, which have shaped their financial attitudes. 

Moreover, many millennials live paycheck to paycheck. Research by LendingClub indicates that they often support both aging parents and their children, adding to their financial responsibilities.

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How Will Millennials Use Their Inheritance?

With significant student loans and credit card debt, many millennials plan to use part of their inheritance to pay off these debts. Eliminating debt could provide financial freedom and enable them to save and invest more.

High housing costs have delayed homeownership for many millennials. Inheritance could help them buy homes, providing stability and a valuable asset for the future. Owning a home can also be a smart financial move, offering potential tax benefits and the chance to build equity.

Millennials are also interested in technology and innovation. This shows in their investment choices. They’re more likely to invest in tech stocks, cryptocurrencies, and socially responsible investments. 

But this last part gives us hope, as some experts think Millennials have a more responsible attitude toward money despite the avocado toast accusations. They often see it as a way to improve the world, which might help them manage their inheritance wisely. This mindset could lead them to use their wealth to create positive changes.

People live longer now, and Social Security might change, so millennials need to consider retirement. Using some of their inheritance to save more for retirement is smart. This way, they can ensure they have enough money to live comfortably when they're older.

And lastly, they should be careful and get advice from financial experts to handle these uncertainties. Having a good financial plan can help protect their money during tough times.

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