Young Americans expect to make more money than their parents
Half of young Americans, aged 15-26, expect to be better off financially than their parents, and 60% of parents agree with them, according to a new AP-NORC poll.
Why it matters: Only half of 30-year-old Americans in 2014 made more than their parents. Compare that to 1970, when 92% of 30-year-olds made more than their parents, according to a report by economist Raj Chetty. If young Millennials and Gen-Zers today end up making more than their parents, it would be the reversal of a falling trend.
By the numbers:
- 29% of young people expect to ultimately be in about the same financial situation as their parents, and a quarter of parents feel the same way.
- 20% of young adults expect to be worse off financially than their parents.
- 12% of parents surveyed also thought their young adult kids would be worse off financially.
The big picture: Young Americans are increasingly more educated, according to a study by Pew Research, and the average income for 25-34 year olds has generally risen in recent years for both men and women after falling or remaining stagnant during the recession, according to Census data.