Young Americans are losing faith in our economy and trust in our institutions as financial milestones feel out of reach and barriers outside of their control shape the types of economic opportunities they have access to. In this report, we hear from young adults directly so that practitioners and policymakers working to expand opportunity for all Americans can deepen their understanding of the types of challenges young adults face in establishing lasting financial stability that provides them with the foundation to build wealth.

Why This Matters

“We don’t want much. What most of us want is stable income, a retirement plan… to have some spending money, maybe own our own homes. I think that’s about it. I don’t think we’re asking for that much.”

—Young adult

In today’s economy, young adults face difficulty in the job market and increasing prices for daily necessities. This contributes to their rising levels of delinquent debt and makes it more challenging for them to gain financial footing—which they need to feel comfortable and capable of engaging in wealth-building opportunities.

What We Found

In our interviews with young adults ages 18 to 24 with low and moderate incomes, we found the following:

• Financial stability and independence are key goals for young adults in the short term, but they face steep challenges. Young adults described difficulties in navigating the affordability crisis, adjusting to artificial intelligence, and getting on the career ladder for high-quality roles that pay the bills.
• Homeownership and higher education remain central to young adults’ long-term wealth-building plans, but they face substantial barriers to achieving these goals. Many young adults described how they felt they had little agency and control over some of the challenges that impact their long-term financial planning, including affording homeownership and higher education, having long-term career stability and planning, and changing student loan policies and job opportunities.
• Young adults saw credit and debt as necessary to pursue their long-term wealth-building goals given the high costs of homeownership and higher education. Most expressed feeling hesitant and anxious about debt burdens, though some reported little anxiety even while holding debt.
• The key to young adults feeling comfortable pursuing their wealth-building goals was detailed, timely, and trusted financial knowledge, and they wanted relevant information when they had the economic resources to invest.

Overall, these insights demonstrate how affordability, labor market demand and earnings, and actionable financial knowledge play a role in young adults’ wealth-building journeys. Policymakers can pursue efforts that address these barriers to stability and wealth, including supporting employment outcomes, improving access to quality credit while minimizing debt burdens, enhancing college access and reforming student debt, increasing housing affordability for renters, strengthening financial capability and knowledge, and facilitating wealth building through early wealth building accounts, homeownership, and retirement.

How We Did It

We conducted in-depth interviews with 16 young adults (ages 18 to 24) with low and moderate incomes from across the US. We asked them about their short- and long-term financial goals; current financial situation; confidence in their financial futures; experience with debt, credit, and investments; challenges and opportunities for building wealth; and experiences learning about finances.