Part 3 of "The Myth of Middle-Class Security" Series

Generations and the Gap: Why Financial Security Isn’t a Level Field

Different generations didn’t just grow up with different tastes or technology — they faced entirely different financial systems. From wages and housing to debt and wealth accumulation, the generational gap isn’t just anecdotal. It’s measurable.

In this post, we break down how Baby Boomers, Gen X, and Millennials experienced — and inherited — the evolving middle-class economy. And we include Gen Z, the newest entrants into an economy they didn’t design but will eventually be expected to fix.

Boomers: A Tailwind of Policy and Timing

Boomers (born 1946–1964) built their lives on the foundation laid in postwar America. They came of age during one of the strongest periods of wage growth, accessible education, and federally supported homeownership. Programs like the GI Bill, union-backed pensions, and a robust manufacturing base created upward mobility that didn’t require a degree — or even dual incomes.

This wasn’t just about luck. It was about policy.

Throughout their adult lives, Boomers consistently benefited from legislation and tax structures that reinforced their security — such as the mortgage interest deduction and Social Security expansion (Federal Reserve, 2022; SSA.gov, 2023).

• In 1963, four years at a public in-state college cost just $3,716 total, with annual tuition around $243 (EducationData.org, 2023).
• Many Boomers bought homes in the 1970s or 80s before housing prices exploded.
• Employer-backed pensions and union jobs were still common.

Today, Boomers make up about 20.6% of the U.S. population (U.S. Census Bureau, 2023), yet they own over 40% of all single-family homes (National Association of Realtors, 2023). Their median net worth between ages 65–74 is $410,000 (Federal Reserve SCF, 2022).

Gen X: The Most Adaptable, Yet Still Behind

Gen X (born 1965–1980) is often labeled the “forgotten generation,” and it shows in the data. Raised in an analog world, they became tech-savvy in a digital one — adapting more than any prior cohort. But that adaptability didn’t translate to financial security.

Gen X came of age as the economy was shifting:

• College tuition was nearly 7x higher than what Boomers paid — about $19,900 for four years by 1989 (EducationData.org, 2023).
• They entered the workforce during early wage stagnation and declining union influence (BLS, 2023).
• Starter homes were harder to find, and prices rose faster than wages.

Many followed the “go to college, get a good job” playbook — but graduated into a system without pensions and with the rise of 401(k)s and credit dependency. Today, Gen X:

• Has a median net worth of $246,700 (ages 45–54) (Federal Reserve SCF, 2022).
• Holds the largest total student loan debt — $634.2 billion for borrowers ages 35–49 (Federal Student Aid Portfolio, 2025).
• Individuals aged 50–61 carry the highest average per borrower: between $45,138 and $47,660 (Student Loan Planner, 2025).

Importantly, Gen X isn’t a monolith. Early Gen Xers (mid-60s to early 70s) still benefited from affordable housing and stable jobs. Late Gen Xers (mid-to-late 70s) faced rising tuition, housing inflation, and stagnating wages — but without the protections earlier cohorts enjoyed.

Millennials: The First to Question the Playbook

Millennials (born 1981–1996) came of age in a debt-fueled, post-9/11, post-Great Recession economy. By the time many entered the workforce, stable jobs were harder to find — and home prices had already surged.

• College costs nearly doubled again since Gen X — ranging from $33,396 to $39,000 for four years in 2000 (EducationData.org, 2023).
• Unpaid internships and gig work replaced entry-level roles.
• Fewer employers offered retirement or affordable health care.

Today:

• Median net worth (ages 35–44) is $135,300 — just over half of Gen X at the same life stage (Federal Reserve SCF, 2022).
• Millennials are the largest working generation, but they hold less than half the wealth Boomers did at the same age (Federal Reserve, 2022).

Many Millennials delayed homeownership, parenthood, and investing because of financial instability. They're often criticized for “not building wealth fast enough,” but they inherited a system already hollowed out.

Gen Z: Entering the Game Already Behind

Gen Z (born ~1997–2012) is still entering adulthood, but the indicators are clear:

• The average cost of college for a four-year public in-state degree is now $89,556 — over 2x what Millennials paid (EducationData.org, 2023).
• Homeownership rates for Gen Z are the lowest — not just because of age, but because of affordability barriers and lender requirements (Pew Research, 2024).
• Gen Z workers are more likely to rely on side hustles or gig income to meet expenses (Deloitte Gen Z & Millennial Survey, 2024).

Median net worth for Americans under 35 is between $31,110 and $39,040 (Federal Reserve SCF, 2022). And while they still have time to grow wealth, they face the added pressure of climate instability, automation, and an aging safety net — including a projected Social Security shortfall by the time they retire (SSA.gov, 2023).

Average vs. Median: What Wealth Stats Can Hide

Average net worth is inflated by a few ultra-wealthy households.
Median net worth is the midpoint — a clearer picture of what most families have.

In nearly every case, median wealth tells the real story of the middle class.

Then vs. Now: Generational Wealth at Age 30

Sources: Federal Reserve SCF (2022), EducationData.org (2023)

So What Does All This Mean?

Each generation has experienced a different version of the American economy — shaped by timing, policy, education costs, labor markets, and asset growth.

• Earlier generations benefited from affordable education, stable employment, and rising asset values.

• Later generations faced higher costs, more debt, less access to wealth-building tools, and fewer institutional protections.

This isn’t about intergenerational rivalry — it’s about structural awareness. If we want to rebuild real financial security, we need to acknowledge the unequal starting lines. Financial advice without that context isn’t just incomplete — it’s misleading.

Up next:
Redefining Security: Building Stability in a Changed System
The final post in the series explores what financial security looks like now — and how to build it using the tools and strategies that fit today’s reality, not yesterday’s promises.