American families’ fortunes diverged sharply by age between 2022 and 2025, according to a Federal Reserve report released this week. Inflation-adjusted median net worth rose 37% among families headed by someone 75 or older, while falling 23% among those headed by someone under 35.

The Survey of Consumer Finances attributed the decline in the youngest families primarily to the reversal of business-equity gains accumulated between 2019 and 2022. For the oldest families, rising retirement-account values drove most of the improvement. Income trends told a different story: higher-income families saw declining incomes, while lower-income families recorded modest increases.

Yet appreciating assets helped older, affluent households build wealth despite those income changes. Consumer prices rose roughly 10% over the period. Stock ownership remains heavily concentrated, with the wealthiest 10% of Americans holding about 87% of stock-market wealth, according to Federal Reserve data.

The Trump administration has introduced investment accounts for children as one response to unequal asset ownership. Eligible American children born from 2025 through 2028 can receive a $1,000 federal contribution, intended to give them an earlier start in accumulating investments of their own.

The report's striking feature is that income and wealth moved in different directions. A larger paycheck can improve living standards without closing the gap between a family that owns appreciating assets and one still trying to acquire them. Wage growth alone doesn't capture economic progress.

Age also naturally brings advantages in the form of more time to save and repay debt, as well as benefit from investment returns and compound interest. But these findings describe more than older families having larger fortunes; they show younger families losing wealth while the oldest gained substantially, widening an existing divide over just three years.

Additionally, the reversal in younger families’ business equity suggests their setback cannot be explained solely by expensive groceries or missed stock-market gains. Any policies meant to help them must account for how they build wealth, including through business ownership.

Children’s investment accounts address one part of that problem by extending access to financial assets. However, their benefits accumulate over decades. Young adults stand to gain very little in the short term, as their ability to save and invest ultimately depends on what remains after paying today’s bills and meeting existing obligations.

Although a rising retirement balance undoubtedly provides security, it may tell a different story for younger generations, as many younger adults struggle to establish themselves. That divergence can create competing demands on family finances, such as helping with a down payment or supporting grandchildren while still saving enough for your own retirement. Wealth accumulated over decades may increasingly serve two generations.

The report's findings also help explain why a higher salary may not always feel like progress for younger adults. Financial security heavily depends on what you own, what you owe, and whether you can withstand an interruption in earnings. A pay increase offers less lasting benefit if higher expenses absorb it before savings can grow.

While neither experience is universal, the figures reveal a growing tension: older Americans’ financial success can coexist with greater concern about their children’s prospects, making prosperity feel less settled than account balances alone suggest.