- The typical Henry – high-income but not yet wealthy – is 32 years old, lives in the city, and has a six-figure income.
- Most Henry doesn't have any children, but he still has $80,000 in student loans to pay off.
- Despite earning more than most Americans, many Henrys do not feel financially secure.
Are you hitting six figures in a metropolitan area as a Gen Z or Millennial? Perhaps you're Henry.
Typical henry — high income earner, but not yet wealthy — is a 32-year-old city resident with no children, a six-figure income, and a large student loan debt. That's according to data on his 1,500 customers shared with Insider. hidden assetsfinancial advisor henry's.
Although most Henrys earn more than $100,000 a year, many are cautious about spending and saving. While some people live a more luxurious life, many save more than 50% of their income each year for retirement or to create a stable safety cushion.
Priya Malani, founder and CEO of Shash Wealth, previously told Insider, “The biggest mistake Generation Henry makes is juggling their financial lives for too long. Saving for Savings It's an investment for the sake of investment.” She said: “Without a specific goal in mind, Henrys are putting their money in an ad hoc way and not allowing it to work for them in the short, medium and long term.'' not.”
meet henry and friends
According to Stash Wells, Henry is typically between the ages of 27 and 42 and lives in a metropolitan area.Average income of people living in tier 1 cities In cities with highly developed real estate markets like New York City and Los Angeles, prices range from $100,000 to $500,000, but in smaller cities, prices drop to around $80,000. HENRY's clients include people of all races, even though racial disparities in net worth are improving but still exist.
Take Savannah White, for example. She saves 50% of her approximately six-figure income each year. The 26-year-old Texan said she rarely goes out to eat and that she drives a cheap car that she has mostly paid off. Although she has become cautious following her rising prices and frequent layoffs in her industry, she still splurges here and there for her vacations and fine dining, things that are important to her. I'm wasting my money.
“Some people look at our lives and say we're really frugal, or that we're on the edge, or that we're missing out on something, but I'm not holding back.” White previously told Insider. “We still take lots of nice holidays, we travel a lot overseas, multiple times a year, we wear nice clothes, and we spend a lot of money on fancy food. .”
Additionally, about half of Henrys live together, but not all of them are married.There are a lot of Henrys too. DINKs, or dual income, no children. Approximately 60% of Henleys have no children. This means some couples can avoid childcare costs such as childcare fees.
Couples without children have the highest net worth of all other types of family structures, with a median net worth of about $399,000, nearly $150,000 more than couples with children.
I don't feel wealthy even though I earn a lot of money
Many Henrys have second or third jobs, and their paychecks start to feel like “real money” instead of just being used to cover expenses. Even though Henry has experience saving, budgeting, and investing, he wants to find ways to make his money work better for him.
Henry households fall in the 60th to mid-90th percentile for median income, according to the Federal Reserve Board. Survey on consumer finance. In 2022, the median household income for the 60th to 80th percentile was nearly $116,000, while the median income for the 80th to 90th percentile was $189,000.
The real net worth of Americans under 35 increased by 143% from 2019 to 2022, and the net worth of Gen Z and Millennials soared during the pandemic. Still, much of this wealth is being spent on housing amid rising interest rates.
Despite earning more than most Americans, many Henrys still worry about their financial future. Henry, 5, told Insider that he saves between 40% and more than 70% of his income each year.
Sherry, a Gen Z employee who works in wealth management, said that she and her husband, a millennial, save about 70% of their income. Sherry, who asked that her first name be used for privacy reasons, said the couple lived a frugal lifestyle due to her concerns about the global economy and U.S. inflation. She also worries about her childcare costs, especially as she continues to advance in her career.
Saving most of her income has become a habit she can't break, especially after buying a house, but she feels relieved that she has a large enough nest egg. It's hard for them to justify spending more than a few hundred dollars, but they still shop, eat out, and watch movies.
“I want to take care of my parents, so I would like to buy something like long-term care insurance in case I need to put them in a nursing home,” Sherry said. “I feel a responsibility to help them retire.”
Many Henrys have fallen victim to lifestyle changes, with increased discretionary consumption as incomes and living standards improve. But Malani said many people are being cautious about their spending these days, and some are being overly cautious.some are Excess savings after retirementI feel guilty spending money on leisure and travel when I could have put that money toward long-term investments.
Is it a bad time to be Henry?
With wage growth slowing compared to lower-income earners, some think it's a bad time to be in the Henry tier. Over the past few years, the bottom 10% of workers have had larger wage increases than the top 10%. Many Henrys worried about being fired Even in high-paying industries, blue collar job The leisure and hospitality sector in particular is experiencing rapid growth.
Student loans are particularly expensive, as the average student loan balance in Henry is $80,000, considering that many in Henry earn bachelor's degrees and some earn Ph.D. By comparison, the average federal student loan balance for all Americans with loans is about $38,000.
Childcare is another particularly expensive worry that weighs on many Henleys' minds. According to research, childcare costs for people with incomes between $150,000 and $250,000 increased by 8% from 2022 to 2023. Bank of America Institute.
This has led some Henrys to spend less on goods and more on experiences. However, even concert ticket and meal prices have increased as a result of the past year. ”fanflation” Even wealthy consumers increasingly dollar storeused car dealership, affordable restaurant Olive Garden, McDonald's, etc.
Sara Baus, a content creator and strategist in Charleston, South Carolina, previously told Insider that she and her husband spent two weeks planning their meals and were able to buy a home for less than $300,000 with a $1,300 monthly mortgage. , said they save 50% to 70% of their total income. I also made my own detergent.
“Even if your income increases through a promotion or a side job, if you can maintain and change your cost of living and comfort level, your ability to save and invest over the years will only be gradual. It's just a build-up that ultimately allows you to fund your lifestyle,” Baus said.
Are you Henry worried about your future savings? To contact this reporter, please contact: nsheid lower@businessinsider.com.
