Millennials will Hold Five Times as Much Wealth in 2030 (by Ribbit Capital)

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Source: US Census Bureau, Survey of Income and Participation, 2014. Deloitte Center of Financial Services, “The Future of Wealth in the United States”. Mortality table from Social Security Administration, Ribbit team analysis.

Cheddar investor Ribbit Capital published the graph above and text below in a recent larger report it shared with its portfolio companies and partners. I asked Micky Malka of Ribbit if I could publish it because it is so relevant to the trends we are seeing at Cheddar amongst our leading advertiser partners, who recognize the necessity of helping millennials save, invest, and prepare for the future:

By 2030, Millennials are expected to control as much as $25T of wealth globally; their parents (the baby boomers) are expected to pass down another $30T by 2050 in North America alone. While it is not unusual for young customers of technology services to become more valuable over time, it is also not always the case; a 25 year-old Facebook user is likely to be worth more than a 45 year-old one, and a Netflix subscriber is likely to be worth only marginally more when they are 50 than when they are 30. But in digital wealth management, the magnitude of change in the value of young clients today — especially clients positioned by family or career trajectory to come into money over time — may prove surprising.

Companies that position themselves specifically to be the trusted custodians and advisors to customers in their 20s and 30s today stand to reap enormous benefits over longer periods of time. While some of these companies may not look like financial giants today — say, for example, mobile apps helping young consumers begin learning how to invest, or platforms helping first-time parents figure out how to start doing family financial planning — they may well be positioning themselves to lay claim to surprising bounties tomorrow. Startups in this category need to have shrewd ways to acquire and service customers, since they are likely to monetize less effectively in earlier years.

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