According to a recent study, the Net Worth of Americans Aged 18 to 35 has dropped by 34% since 1996. Here’s why. Add me on Instagram: GPStephan
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Within the article, we have two main takeaways:
First, on average, the cost of education - AKA COLLEGE - has risen 65% in the last 10 years.
And second… wage growth - on average - has only gone up about 26% in the last 10 years…
When we factor in inflation, we’re left with the NET cost of college going up a whopping 54% IN 10 YEARS.
And the NET increase in wage growth during that same time going up a whopping…you ready for this?…6.5%
The first thing we need to discuss, is college…and how ridiculously expensive it is.
The main issue, I think, is that we have a society that encourages getting a college degree as the “safe way” to be successful, and we have many of our parents pressuring us to get a college degree because that’s what worked FOR THEM.
Just look at the statistics though…in 1970, only 16% of people had a college degree or higher.
https://trends.collegeboard.org/education-pays/figures-tables/educational-attainment-over-time-1940-2009
Today, nearly 40% of millennials in the workforce have a bachelors degree:
https://www.pewresearch.org/fact-tank/2017/05/16/todays-young-workers-are-more-likely-than-ever-to-have-a-bachelors-degree/
This means that, back then, not only was college CONSIDERABLY less expensive than it is today, but it was FAR more exclusive. You have the the cost of college rising faster than my investments, combined with a nearly 300% increase in college graduates, combined with abysmal wage growth…all blended together with parental pressure to go into DEBT for a degree that no longer has the prestige it once did.
And this is where the issue begins…most millennial are starting out their career IN DEBT, with more interest accruing every day, with almost non existent wage growth…and I’m not surprised to see how their net worth has dropped 34% since 1996.
SECONDLY…we need to address the inefficiencies of making money.
From what I see, we’re slowly entering an era where jobs are much less applied for…instead, they’re created. With the prolificness of the internet, I’m seeing more and more people opt to start their own businesses rather than work for someone else.
And by following that, people are overlooking the obvious:
That starting your own business, or pursuing a trade, or honing a skill can have a MUCH HIGHER ROI than a 4 year college degree.
Now I understand this is a very one-sided argument…I know what people are going to say.
First, not everyone can be an entrepreneur.
I agree. If becoming an entrepreneur is not your thing, don’t do it. If you prefer something more practicable, a steady paycheck might be better choice. However, be VERY considerate about where you go to college and how much that costs. Perhaps consider 2 years of community college and then transfer to complete the last 2 years to save on cost.
OR…look into a trade school. There are PLENTY of trades that will ALWAYS be in demand that make a LOT of money.
Contractors, electricians, plumbers, welders…even just learning how to code could be an invaluable skill.
Second, I’m sure people will say there are benefits of college that aren’t just financial.
I’m not here to dismiss that. I’m sure there are plenty of social benefits, and just overall life experience benefits of going to school that can help considerably - but I also believe there are JUST as many, if not MORE benefits of not going, and being FORCED to put yourself out there and make things happen - otherwise nothing will happen.
At the end of the day, it’s really just about evaluating both the ROI of a college degree from the financial standpoint, and the realities that making making in 2019 is changing dramatically. When you can make more in a MONTH than a doctor makes in a year by selling wolf mugs on Facebook….then you know things are changing up quickly.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com

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32 thoughts on “Why millennial net worth dropped -34%”
  1. Avataaar/Circle Created with python_avatars M says:

    🪙 gold!

  2. Avataaar/Circle Created with python_avatars Natalie Kwong says:

    I think you have the idea of education system wrong. School is there to teach you how to teach, that’s what they’re specialised in, teaching. They’re not specialised in business; hence, you don’t get classes learning how to be an entrepreneur. That’s how I see it

  3. Avataaar/Circle Created with python_avatars Jun Liang says:

    It’s true over borrowing student loans is a real problem. However, in your case of succeeding without a degree is more of a survivorship bias meaning not having a degree is not the reason why people would succeed.

  4. Avataaar/Circle Created with python_avatars Pandorash8 says:

    I see people who do well financially who both went to college and didn’t. I also see people not doing so well who both went to college and who didn’t. Going to college, learning a trade, getting a certificate/licence, or just work alone, can all be avenues to success (or not). Just avoid debt and make sure you save and invest all you can.

  5. Avataaar/Circle Created with python_avatars Jonathan Lemus says:

    Let me clarify, I'm a Junior in High School.

    This year, I stopped paying attention to school. I used to be that straight A's student that everyone wanted to copy from. I focused on my grades 24/7, so far so that I would spend nearly all day in my room studying! Now, I'm an all D student. I started to watch Graham a few months ago, and from him, I've learned so much! He lead to to think outside the box. I thought to myself, when will I ever use the calculus I'm studying? When will I use electrical engineering? When will I use advanced biology? It doesn't apply to any of my interests. Recently, I've started to tech myself, through google, how to learn a trade that my dad is skilled in. Refinishing hardwood floors.

    Though I'm the type of person that doesn't likes to get my hands dirty, I came up with another idea. How about starting my own business? Again, through google and Youtube, I taught myself how to build a business and how to design a website. Currently, I'm in the finishing stages of publishing my website and through means of business cards and online advertising, I expect it to be a fairly successful, due to the fact that hardwood floors are nearly everywhere! I didn't also create an opportunity for me, but also an opportunity for my father. He will now have a safe and secure job which will hopefully pay him well (hardwood floor refinishing is quite the business). He will no longer stress about having to work at night and in the day, sleeping a bare minimum of 4 hours, if lucky.

    Also, I'm very interested in real estate. Graham opened a new opportunity for me to seek. Before Graham, I had no clue the variety of taxes there are! Crazy to think that school would just throw that out the window. I've learned how to manage my money, spend less, and save! Followed by many REAL LIFE tips and tricks. Also, that $0.20 coffee is really saving me quite the buck (before I was spending $2.99 on TimHortons coffee).

    If you're reading this Graham, thank you.

  6. Avataaar/Circle Created with python_avatars BlueDreamxTV says:

    Wolf Mugs hahaha

  7. Avataaar/Circle Created with python_avatars Lloyd Aurion - Gaming says:

    One of the biggest reasons why colleges have skyrocketed in price is because colleges keep building new things and giving students free crap. It’s not just something I have observed either. There has been a documentary about it too. If colleges would stop building new buildings and stop just giving away free crap then they wouldn’t need to increase it so much. My accounting instructor is fairly high up on the totem pole at my university and he has even told us that our college is nearly in the red every single semester….. doesn’t make much sense. Funny how you talked about watching YouTube for education because where I watched said documentary was in my marketing class. Our class time of 1 hour and 15 minutes was used to watch a YouTube documentary about why colleges are more expensive.

  8. Avataaar/Circle Created with python_avatars iloveyoueggegg says:

    I wish I heard this before I went to uni

  9. Avataaar/Circle Created with python_avatars Nat Williams says:

    Man I wish I could get a law degree on YouTube

  10. Avataaar/Circle Created with python_avatars Arm Chair Economist says:

    I met my wife in college, as well as many life long friends.

  11. Avataaar/Circle Created with python_avatars Crazybloo3 says:

    Community college is great. I was able to pay for it with just working in highschool.

  12. Avataaar/Circle Created with python_avatars AK KA says:

    “The cost of college is growing faster than my investments.” 💀💀💀

  13. Avataaar/Circle Created with python_avatars Pineapple Head says:

    Y our mom lollolollollolo ndfkjgalhfviuAS

  14. Avataaar/Circle Created with python_avatars Sarah Vue says:

    I feel like there are some benefits of not going to college but I feel like there is a population of students that you leave out. There are some students who get free college and even get paid to go to college (receiving refund checks and etc.). Some colleges even pay for trips especially if you are dedicated to a club. And this is just from my experience. I know this is not true for everyone but there are still people who need to go to college and there are many people who will have no reason to go to college. I think there should always be a balance and we have just reached a point in time where it has leaned too much on the college side.

  15. Avataaar/Circle Created with python_avatars Dana Yi says:

    If it drops -34%, doesn't it grow by 34%? 😛

    Just kidding, great video as always!

  16. Avataaar/Circle Created with python_avatars Deepak Vilas says:

    Another point is you can't even sell your college degree.

  17. Avataaar/Circle Created with python_avatars Mere Gaming says:

    I respect that you told us that you didn't go because you didn't get in. There are plenty of people who pat themselves on the back for "being smart enough to not go," when really they just couldn't get in.

  18. Avataaar/Circle Created with python_avatars Sunny Snow says:

    college can't teach all that.

    The 'professor' don't have enough time/reason/willingness.

    Also students don't take lessons seriously enough, they only do the bare minimum.

    Collage now is just a party house where children escape thier overbearing parents.

  19. Avataaar/Circle Created with python_avatars The Law says:

    Bryan Caplan's "The Case Against Education" is a great book to see the cost and problems with education financially and lists the parameters that make college worth it).

  20. Avataaar/Circle Created with python_avatars Eric Molino Ferrer says:

    Stephen: i would love to see a class in how to SMASH THAT LIKE BUTTON

  21. Avataaar/Circle Created with python_avatars Greg says:

    My net worth is $500 and my monthly income = my monthly expenses. I need to find a side hustle

  22. Avataaar/Circle Created with python_avatars IaintTheHerb says:

    Boomer parents push 1982 era advice about college; their kids graduate in debt and compete directly with cheap imported H1B scab labor for the same jobs. WTF?

  23. Avataaar/Circle Created with python_avatars Jacob L. says:

    Most of my friends have college degrees and feels like all of them are broke right now, settling for retail jobs, living off parents. Its sad

  24. Avataaar/Circle Created with python_avatars Shane says:

    I was pressured into college i did engineering. I hated school yet my parents and teachers acted like it was do or die. its facinating how we presure people to compete in an environment that goes against there being. I was astounded by the in inefficiencies in college, spending 2hrs in one lecture with 80% of people not paying attention. luckily i'm from Ireland and education is free you guys are insane but i understand the pressure.

  25. Avataaar/Circle Created with python_avatars Blake Reese says:

    do not open the floodgates of youtube diving into academics graham, the world isnt ready XD

  26. Avataaar/Circle Created with python_avatars MMO Archives says:

    that's the cool thing about being a youtuber, you can claim you're a rich real estate agent and morons will believe you in the comments below

  27. Avataaar/Circle Created with python_avatars MMO Archives says:

    the more you job hop, the more your self worth drops, that's just reality

  28. Avataaar/Circle Created with python_avatars Sunderwire says:

    I've never understood why I needed to take Biology and Spanish for my Journalism Degree… They should make you ONLY take classes you actually need, not these bullshit filler classes just to waste your time. Everyone cheats in college anyways, they just want to pass and get out.

  29. Avataaar/Circle Created with python_avatars Will K says:

    It depends on the degree studied. A lot of people in our generation do find a university/college degree to be worth it.

  30. Avataaar/Circle Created with python_avatars mikfhan says:

    I wonder what the average risk/chance of defaulting student loans is; there must be some kind of breaking point after x years when graduates/dropouts have no chance of paying their debts. If student loan companies are permitted to continue operation despite many of their customers being at risk of this, they would be "too big to fail" which smells like a bubble to me.

  31. Avataaar/Circle Created with python_avatars Donald Spaulding says:

    Odd that he doesn't put a link to the original article.

  32. Avataaar/Circle Created with python_avatars red squirrel says:

    I'm 27 and did both I taught my self to code after doing a degree at university without knowing what to do and got my self a job as a developer on an average wage.

    I work with quite a lot of people that started learning after high school starting when they were 5 or more years younger (2 for six form 3 for university) and without 20k in student loan debit.

    I also know some guys making 2-3 times the national average wage in trades and starting at a young age.

    I save and invest half my wage and have a side hustle but I have an awful lot of ground to make up due to my slow financial start.

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