Millennials are on the brink of a massive financial change. Over the next 20 years, they are set to inherit an astonishing $90 trillion from older generations. This is called the “Great Wealth Transfer.” It’s expected to make millennials the wealthiest generation in history, but it’s not all cash and stocks – along with the wealth, millennials are also inheriting something much less glamorous – mountains of stuff.
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The wealth transfer primarily comes from baby boomers and the Silent Generation, who are ready to pass down their life savings, homes and other assets. By 2030, millennials' wealth could grow fivefold, making them the next major holders of wealth.
Despite being known in mainstream media for spending on things like avocado toast, millennials are proving themselves more financially savvy than they’re often given credit for. They lived through the 2008 financial crisis, high student loans and skyrocketing housing costs, influencing their more cautious approach to money.
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A 2023 Alliant Credit Union study shows millennials are the most financially responsible generation. On average, millennials anticipate inheriting $350,000 or more, but their parents typically intend to leave them less – roughly $250,000. Regardless, that’s a sizable sum of money that has the potential to significantly alter their financial future.
But millennials are also dealing with what we can call the “Great Stuff Transfer” – a less glamorous side of inheritance. Many baby boomers were born into periods of unprecedented wealth and have spent decades gathering items such as antiques, furniture, trinkets from their trips and even out-of-date family heirlooms. They’re downsizing and all this stuff needs to go somewhere.
Most of these things just aren’t worth as much as they used to be. Silver platters, old furniture and collectibles don’t sell for much now. The real problem isn’t the money; it’s the large amount of stuff and the emotions tied to it. Parents want their kids to keep these items, but millennials often don’t have the space, time or interest.
Millennials are finding themselves in a difficult spot. Yes, they appreciate the sentimental value their parents attach to these items, but many of them just don’t have the space for their parents’ enormous brown hutch or the wedding china that no one needs or uses anymore.
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Many people are more minimalistic now and live in smaller houses or apartments. They also prefer spending money on useful things or experiences rather than keeping their parents’ trinkets.
Experts recommend starting early conversations with parents about what items they truly value, what can be donated and what might actually be worth keeping. Getting help from financial planners or professional organizers can also ease the burden of managing wealth and stuff.
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