Wealth Gap Widens, Especially Among Younger Americans

A recent report from the Federal Reserve, released on Friday, shows that the financial divide between wealthy Americans and the rest of the population has grown since the COVID-19 pandemic. It’s interesting how, while the median family net worth increased by 2% to nearly $216,000 from 2022 to 2025, the median net worth for individuals under 35 actually dropped by an alarming 23%, landing at around $33,000. In contrast, those aged 75 and older saw their median net worth rise significantly, by 37%, reaching about $504,900.

The White House has yet to respond to inquiries from various news outlets. The Fed itself noted that they could only provide the information contained in their report.

It appears that other age groups didn’t fare much better either. For those aged 45 to 54, the median net worth fell by 6%, while it dropped by 4% for those aged 65 to 74. On a slightly more positive note, respondents between 35 and 44 years old and those aged 55 to 64 did see increases of 5% and 3%, respectively.

One possible reason for these shifts could be the decrease in stock market participation. The percentage of individuals engaged in trading fell from 58% in 2022 to 56% in 2025, primarily among those not in the top 10% income bracket highlighted in the report. Interestingly, the S&P 500 index climbed by 78% from 2023 to 2025, according to reports.

This Fed report coincides with findings from a separate study by a crypto casino, BC Game, which discovered that the median costs for essentials like used cars, housing, education, weddings, and childcare have outpaced wage growth from 1985 to 2026.

Both reports arise amidst political jockeying by Democrats and Republicans over issues of affordability, particularly as the midterm elections approach. The growing economic concerns among younger generations may significantly influence which party prevails in the upcoming Congress.

Moreover, a CBS News poll from September 24 reveals a decline in support for capitalism among Americans under 30, dropping from 52% to 48% since 2018. On the flip side, support for socialism has edged up from 19% to 21%. According to pollster Micah Roberts, this rise in interest towards the Democratic Socialists of America’s agenda seems to stem more from frustration with the current state of affairs than a true ideological shift.