Why does consumer spending keep holding up when so many households say they feel squeezed by rent, groceries and debt? Part of the answer may be age: Federal Reserve data cited by CNBC on October 12, 2026 shows families headed by someone 75 or older saw median net worth rise 37% from 2022 to 2025, while families under 35 saw a 23% decline over the same period.
What changed: a generational split, not just an income split
Economists have debated whether the US is in a ‘K-shaped economy,’ where richer households keep spending while lower- and middle-income Americans fall behind. Ed Yardeni, president and chief investment strategist of Yardeni Research, told CNBC he sees something different: a ‘G-shaped economy,’ where the dividing line is generation rather than income. He said baby boomers are living longer, staying active longer, and spending more on themselves and on their adult children and grandchildren, supported by investments, retirement savings and home equity built up over decades. A new Principal Financial Group survey, provided exclusively to CNBC and fielded from April 17 to May 16 among 1,000 US consumers, found 53% of baby boomers said they feel able to manage their debt, compared with 42% of Generation X and millennials, and 39% of Generation Z.
Follow the money: from net worth to the checkout line
Start with the Federal Reserve figures: households aged 75-plus saw median net worth climb 37% between 2022 and 2025, while households under 35 saw theirs fall 23% over the same stretch, according to Fed data reported by CNBC. That accumulated wealth does not just sit still. New research from the JPMorganChase Institute, also cited by CNBC, found that the share of individuals moving money out of investments and into checking accounts has more than doubled since 2019. In plain terms: more people, concentrated among older account holders with larger balances, are converting investment gains into cash they can spend. That cash then shows up as spending on everyday goods, travel, and help for younger family members, which is one reason overall consumer spending has stayed resilient even as housing costs and debt burdens weigh on younger households, per Yardeni’s comments to CNBC.
Our math: what a 37% gain and a 23% loss look like in dollars
As an illustration only, based on the Federal Reserve’s reported percentage changes: a household aged 75 or older with a net worth of $400,000 in 2022 would have grown that to roughly $548,000 by 2025, applying the reported 37% increase. A household under 35 with a net worth of $20,000 in 2022 would have seen it fall to roughly $15,400 by 2025, applying the reported 23% decline. These are hypothetical starting points chosen only to show the scale of the reported percentage gap; they are not the actual median dollar figures published by the Fed.
This week and what to watch
If you are under 35 or managing debt, this week’s practical step is to pull your most recent account statements and compare today’s balance with one year ago, so you know your own trend rather than relying on national averages. Watch for the next Federal Reserve Survey of Consumer Finances update and further JPMorganChase Institute data on cash-out behavior, both cited by CNBC on October 12, 2026, as well as any updated Principal Financial Group confidence surveys. Source: CNBC, October 12, 2026, citing Federal Reserve data, JPMorganChase Institute research and a Principal Financial Group survey. Disclaimer: This analysis is for educational and informational purposes only and should not be construed as financial or investment advice.
