Current generation of young Canadians wealthiest ever: federal study

[applegrove]

Current generation of young Canadians wealthiest ever: federal study

http://www.cbc.ca/news/politics/millennials-money-canada-generation-1.3462064

"SNIP...........


Canada's young adults are struggling financially, stuck in crappy McJobs, saddled with student debt and living in their parents' basements, right?

Wrong, says a new analysis from the federal Finance Department: 28 to 34-year-olds are actually the wealthiest such generation in Canadian history.

"The current generation of young Canadians is, on average, wealthier than previous generations of young Canadians," says the confidential report, though with some cautionary notes.

"Young Canadians … born in the first half of the 1980s had an average net worth of close to $93,000 per adult. In contrast, previous generations of young Canadians had an average net worth of about $60,000 per adult — 35 per cent less once adjusted for inflation."



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[applegrove]

1. Who says social programs and good public education and health care don't work?

[VMA131Marine]

2. Great news for Canada but you have to be careful with averages

they can be skewed by a few very high net worth individuals. It would be helpful to know the median net worth as well.

[applegrove]

3. The young middle adults in the study are doing moderately well, not as well as the top

10%, but okay. The world economy considering.

[HEyHEY]

4. Poor piece of journalism

Not usual for Beeby, but it doesn't take into account the percentages of salaries people pay for cost of living.

Sure they may make 93,000 compare to 60,000 (adjusted) but when rent in 2016 take half your paycheque rather than a quarter there's a big difference.

[laundry_queen]

5. Probably less renters overall too

Most people I know buy the second they get their 5% down payment together. Where I live, it's WAY cheaper to own than rent. That means you are going to have a higher net worth, especially when that real estate goes up - even if it doesn't and stays flat, you are going to have a higher net worth than a renter unless that renter puts aside extra money to save...but when rent is higher than a mortgage, where will that money come from?

The ones who are doing better? They got money from their parents for their down payments. Their parents paid for university. They work for their parent's company...and inherit it when mommy and daddy retire. At least that's how it works in my relatively wealthy area (I'm only here because I grew up here before it was a wealthy area and my parents still lived here when I got divorced so I moved 'back home' so the kids could be closer to the grandparents. Of course now my parents are retiring and leaving. Great. Oh, wait, wrong thread for this...lol.)