Sadly, for many Millennials, the dream of achieving financial stability often feels much more out of reach than it did for Baby Boomers. There are a lot of factors contributing to this issue, especially things like rising costs and stagnant wages. Let’s take a look at a few things Boomers could afford that Millennials now struggle to even dream about.
Buying a House in Your 20s
As the older folks among us will remember, buying a house used to be a pretty attainable feat, even at a fairly young age. But today, that’s becoming more and more difficult for people in their 20s, at least without the help of generous family members.
Younger people are dealing with skyrocketing real estate costs, limited inventory, and student loan debts, all of which make homeownership feel unattainable for many Millennials.
Raising a Family on One Income
A few decades ago, it was quite common for one parent to stay home while the other supported the whole family on a single paycheck. While this can certainly be a good way of doing things, the cost of living is significantly higher now, so most Millennial households really need two incomes just to get by.
Graduating College Without Debt
Back in the good old days, tuition costs were pretty low, and many could even graduate college without taking on any loans at all. Unfortunately for Millennials, they’re now faced with a whole lot of student loan debt that can stretch into decades, as tuition prices have increased dramatically over the past few decades.
Buying a New Car Without Breaking the Bank
Sure, plenty of Millennials drive cars today, but that doesn’t mean it’s as easy to own one as it used to be. A new car used to be a pretty easy purchase for many Boomers, even on an entry-level salary. And yet today, Millennials face the highest car prices in history, with financing terms seemingly going on forever.
Affordable Healthcare
One thing we can all agree should be affordable for everyone is healthcare, and yet sadly that’s not the reality for many Americans. While Boomers benefited from employer-sponsored health plans with fairly low premiums and decent coverage, Millennials must deal with soaring healthcare costs, high deductibles, and gaps in coverage.
Regular Vacations
A lot of Boomers were lucky enough to take yearly vacations to anywhere they pleased without putting much strain on their budgets. Millennials, however, often need to save for months—or use credit—just to afford a simple trip. Rising travel costs make even short getaways a challenge.
Living Without Roommates
If you were a young Boomer, it wasn’t uncommon to rent an apartment or even a house alone early in their careers. Millennials, though, are now facing sky-high rent costs, meaning they often need to share living spaces well into their 30s just to make ends meet.
Affording Home Renovations
Remember when you could easily invest in that kitchen renovation or bathroom upgrade? Those days seem to be long gone now, as even basic home repairs or upgrades often feel out of reach for Millennials, especially with material and labor costs continuing to rise.
Saving for Retirement Early
A lot of Boomers began contributing to retirement savings as early as their 20s, often with help from employer-sponsored pensions or 401(k) matching. The future looks a bit more grim for Millennials, who commonly struggle to save for retirement while balancing student loans, rent, and other expenses.
Owning a Vacation Home
Many people still dream of having a vacation home of their own one day, but that’s an ambition that feels a lot less realistic today. While they were an achievable goal for some Boomers, with today’s inflated property prices and high taxes, Millennials can barely afford a primary residence, let alone a second one for weekend getaways.
Shopping for Groceries Without Budgeting
A few decades ago, Boomers could easily fill a grocery cart for a reasonable amount, with prices for essentials like bread, milk, and eggs staying relatively low. But unfortunately, Millennials have to deal with much higher food prices across the board, often needing to carefully plan and budget to make sure they don’t overspend.
Paying Off Credit Card Balances Easily
If you accidentally built up some credit card debt, it used to be pretty easy to pay it off with a little planning, especially with lower interest rates and fewer temptations for overspending. However, nowadays, sky-high interest rates, larger balances, and stagnant wages, all make it much harder to climb out of the debt hole.
Having a Savings Cushion
It’s a great idea to have an emergency fund for unexpected life events or necessary payments. This was pretty easy for Boomers to do, as wages went further, and the cost of living was a lot lower. Millennials often find it difficult to save even a few hundred dollars because of all the rising expenses, leaving a lot of them living paycheck to paycheck.
Sending Kids to College Without Loans
Luckily for Boomers who had children in the ’80s and ’90s, it was pretty easy for them to pay for their kids’ college tuition out of pocket or with barely any loans. Millennials, now becoming parents themselves, sadly face much higher tuition rates and are often unable to support their children’s education costs as much as they’d like.
Owning a Business Without Massive Debt
For Boomers, it may only feel like yesterday when starting a business was quite an affordable task thanks to lower startup costs and fewer regulatory hurdles. But if you do your research, you’ll find that Millennials often need significant loans or investors to launch even small ventures.
Buying Affordable Furniture
Obviously, people still buy plenty of furniture today, but it’s really not as affordable as it used to be. Good-quality pieces that were built to last were quite easy to come by during the Boomers’ early years. Millennials, however, face higher prices for the good stuff, often causing them to settle for cheaper, disposable furniture from big-box stores instead.
Affording Life Insurance Early
Life insurance used to be seen as a fairly standard part of financial planning, especially since affordable policies fit most budgets. But things have changed quite a bit since then, as today, rising premiums and competing financial priorities make life insurance a much lower priority, even though it’s still just as important.
Access to Stable Job Benefits
Many Boomers were fortunate enough to start careers with jobs that offered full benefits, including things like health insurance, pensions, and paid time off. And yet today, Millennials frequently work in gig or contract roles that lack these perks, which forces them to pay for benefits out of pocket or go without entirely.