Young Americans expect an average $320K inheritance, but how will they use it?

Using their windfall for investing and saving is a priority, survey shows.

With a vast global generational wealth transfer of an estimated $84 trillion underway, young Americans are facing the enviable task of deciding how they will put any windfall to good use.

A recent survey by USA Today asked Americans ages 18 to 44 about their expectations for inheritance and what they intend to do with it. More than two-thirds of respondents had either inherited already or expect to do so, and the amounts are significant.

The average amount expected is $320,000, but most have more modest expectations, with 51% believing they will get (or have already got) more than $100,000; for 33%, it’s more than $200,000. However, for 15% it’s at least $500,000, and 6% have or expect to inherit $1 million or more.

The assets they expect to receive are cash (82%), real estate (62%), vehicle (41%), investments and ownership stakes (32%), and other property (19%).

With six-figure sums to consider, 76% of the heirs intend to save and invest as a priority, while paying off debt is important for 40%, with 69% of those saying an inheritance can clear their debts. However, just 20% intend to pay off their mortgage, a smaller share than will use their windfall for travel.

Although Gen Z and millennials appear to be interested in societal challenges and inequality, 92% of respondents have no plans to donate any of their inheritance to charities or other good causes. The survey found that 54% of those who expect to inherit or have already believe the Great Wealth Transfer will increase wealth inequality in the U.S.

The lack of philanthropic intention may be partly due to the expectation (or reality for some) of financially supporting aging parents (33%), with only around one-third of these having included this in their financial planning and spending behavior and 15% having taken on debt to help their parents (or intending to).