financial theory about younger generations (2025)

Anonymous wrote:My two kids who are young adults have money from their grandparents . My daughter travels a lot, $750 haircut and highlights, $200 massages, clothes, expensive stuff. My son is what might be called frugal. He doesn’t spend a dime more than he has to. Guess who has the portfolio that has been making good money (before Trump). They were both brought up the same but are completely different. You can’t claim a whole generation is struggling or doing well. Just being in the same age group means nothing.

Probably the daughter because she married well to keep up with that lifestyle.

Inheritance is not at all the norm and never has been. Consider yourself fortunate if you don't need to help support your aging parents.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Financial theory-
Studying hard in school, going to a 4 year college, and studying hard in a employable major will yield a good job with great earning potential.
And then you will be able to buy your own home, car, etc.
Try it. It has worked for over a hundred years

That worked before a starter home was basically 10 times the average salary.

The financial strife of GenZ is all about the cost of housing and to a less of degree college. Even state college can leave someone with substantial debt.

“ While median household income has increased from about $45,000 in the 1990s to $70,000 today, the significant rise in median home prices from around $135,000 to over $400,000 has led to decreased housing affordability”

Additionally, they idea of cheaper homes has always been to move further route, but now with increased traffic and gig worker, driving even moderate length commute are untenable because they consume so much time

And of course worse in major metros:

“ In major metropolitan areas, while median household income has increased from about $60,000 in the 1990s to around $90,000 today, the significant rise in median home prices from approximately $250,000 to over $700,000 has led to a substantial decrease in housing affordability. Many households now face a greater financial burden, spending a larger percentage of their income on housing compared to the 1990s.”

Comparing housing costs alone is not telling the whole story. For example, in 1990 the median price per sqft was about $63.00. Median size was 1900. In 2018, median price per sqft was $137.00 but the median size was 2400 sqft. Just using price and salary does not give an accurate reflection.

So? I can't afford to knock down a big house and build a small one. The value of extra sqft is much less as the house gets bigger. Those 500 feet are basically worthless but still cost double what the 1900 feet cost in 1990.

Anonymous wrote:

Anonymous wrote:Social media is the problem. Ridiculous expectations about how everyone should have nice things right out of the gate.

Totally true. Boomers didn't inherited money, they lived a frugal life and accumulated money. Youngster need to do the same.

+1 Lots of young people want nice homes with the latest finishes as their first place and also expensive entertainment, clothes, etc. You either have the money to do it all or you don't. If you don't, then you need to prioritize and sacrifice other things to fund your priorities.

I see lots of people on this forum who sacrificed buying a home to fund other priorities, but they don't realize it.

Anonymous wrote:

Anonymous wrote:Financial theory-
Studying hard in school, going to a 4 year college, and studying hard in a employable major will yield a good job with great earning potential.
And then you will be able to buy your own home, car, etc.
Try it. It has worked for over a hundred years

Or just work.

i didn't graduate HS and make roughly $1mil/year from job and about $400k from investments.

what do you do?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Social media is the problem. Ridiculous expectations about how everyone should have nice things right out of the gate.

Totally true. Boomers didn't inherited money, they lived a frugal life and accumulated money. Youngster need to do the same.

+1 Lots of young people want nice homes with the latest finishes as their first place and also expensive entertainment, clothes, etc. You either have the money to do it all or you don't. If you don't, then you need to prioritize and sacrifice other things to fund your priorities.

I see lots of people on this forum who sacrificed buying a home to fund other priorities, but they don't realize it.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Social media is the problem. Ridiculous expectations about how everyone should have nice things right out of the gate.

Totally true. Boomers didn't inherited money, they lived a frugal life and accumulated money. Youngster need to do the same.

+1 Lots of young people want nice homes with the latest finishes as their first place and also expensive entertainment, clothes, etc. You either have the money to do it all or you don't. If you don't, then you need to prioritize and sacrifice other things to fund your priorities.

I see lots of people on this forum who sacrificed buying a home to fund other priorities, but they don't realize it.

Conversely, I see lots of boomers who can't do basic math on median income vs median home prices.

Of course because every problem for every generation is all the fault of Boomers. My gosh, give it a rest and I’m not even close to being a Boomer. But the Boomer bashing has become absurd and exhausting.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Social media is the problem. Ridiculous expectations about how everyone should have nice things right out of the gate.

Totally true. Boomers didn't inherited money, they lived a frugal life and accumulated money. Youngster need to do the same.

+1 Lots of young people want nice homes with the latest finishes as their first place and also expensive entertainment, clothes, etc. You either have the money to do it all or you don't. If you don't, then you need to prioritize and sacrifice other things to fund your priorities.

I see lots of people on this forum who sacrificed buying a home to fund other priorities, but they don't realize it.

Conversely, I see lots of boomers who can't do basic math on median income vs median home prices.

Of course because every problem for every generation is all the fault of Boomers. My gosh, give it a rest and I’m not even close to being a Boomer. But the Boomer bashing has become absurd and exhausting.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Social media is the problem. Ridiculous expectations about how everyone should have nice things right out of the gate.

Totally true. Boomers didn't inherited money, they lived a frugal life and accumulated money. Youngster need to do the same.

+1 Lots of young people want nice homes with the latest finishes as their first place and also expensive entertainment, clothes, etc. You either have the money to do it all or you don't. If you don't, then you need to prioritize and sacrifice other things to fund your priorities.

I see lots of people on this forum who sacrificed buying a home to fund other priorities, but they don't realize it.

Conversely, I see lots of boomers who can't do basic math on median income vs median home prices.

Of course because every problem for every generation is all the fault of Boomers. My gosh, give it a rest and I’m not even close to being a Boomer. But the Boomer bashing has become absurd and exhausting.

It’s simple math. The median home price has increased at a rate significantly greater than the median income. That statement is a fact with no blame placed.

It probably increased even more than that in the house poor yuppie areas that you want to live.