Why Life Feels So Expensive for Millennials and Gen Z
Have you ever looked at your bank account and thought, “How is this even possible? I’ve barely done anything, and I’m already broke?” You’re not alone. Many millennials and Gen Zers are asking themselves the same thing. From sky-high rent to pricey groceries, it often feels like just existing comes with a hefty price tag. So why does life feel so expensive for younger generations today? Let’s dive into what’s really going on — and what you can do about it.
The High Cost of Just Existing
Let’s be real: just surviving in 2024 costs a lot more than it used to. Rent, food, gas, student loans — they all add up fast. And unlike previous generations, many young people today aren’t seeing their paychecks keep up with rising costs.
The big question is: Why?
There are a few key reasons why life feels especially expensive for millennials and Gen Z:
- Stagnant wages: Salaries haven’t increased as quickly as living costs.
- Inflation: Prices have gone up for everything — food, housing, healthcare, you name it.
- Student loan debt: Many young people are starting adult life in the red.
- Housing crisis: Buying a home feels out of reach for most first-time buyers.
- Job insecurity: Gig work and short-term contracts mean less financial stability.
The Rent is… Still Too Damn High
One of the biggest strains on the younger generation’s wallet is housing. Rent prices have skyrocketed across the country, and supply hasn’t kept up with demand. Whether you’re in a big city or a smaller town, chances are you’re paying a large chunk of your income on rent each month.
In fact, it’s not uncommon today for people in their 20s and 30s to spend more than 50% of their income on housing, far above what financial experts recommend.
Why Can’t We Just Buy Instead of Rent?
That would be great — except buying a home isn’t exactly easy either. Home prices have soared in recent years, and mortgage interest rates haven’t been doing us any favors. For many young people, saving for a down payment while also managing rent, bills, and debt feels impossible.
It’s like running a race where the finish line keeps moving further and further away.
Wages Aren’t Keeping Up
Back in the day, a single income could cover rent or a mortgage, groceries, utilities, a car, and even some savings on top. Today? Not so much.
Even though the cost of living keeps rising, many salaries have stayed nearly the same for years. Adjusted for inflation, the real value of wages has barely budged, meaning people are making the same money but spending more of it just to get by.
Let’s Break It Down:
- A cup of coffee: Used to be $1. Now it’s often $4 or $5.
- Groceries: Basic staples like eggs, milk, and bread have all gone up.
- Utilities: Internet and electricity bills are climbing too.
But are our salaries rising at the same pace? Most of the time, the answer is no.
It’s Not Just About Money — It’s About Security
Older generations often talk about how they bought a house in their 20s, supported a family on one income, and retired with a pension. Today’s reality looks very different.
Millennials and Gen Z are often living paycheck to paycheck. Many are juggling multiple jobs or side hustles just to make ends meet. This isn’t just exhausting — it’s unsustainable.
And let’s not dismiss the emotional toll of all this. Constant financial stress can lead to anxiety, burnout, and even depression. It’s hard to plan for the future when you’re struggling to make it through the month.
So, What Can We Do?
It might sound bleak — but it’s not hopeless. While we can’t magically fix the economy, there are ways to navigate these challenges and take back some control.
Tips to Stretch Your Dollars Further
- Make a budget that works for you: Track where your money goes. Even small changes can help.
- Cut unnecessary subscriptions: Are you actually using all those streaming services?
- Find community resources: There are nonprofits and financial aid programs that can help with food, housing, or job training.
- Side hustles can’t hurt: Just make sure they don’t burn you out. Think of freelance gigs or selling unused items online.
- Talk about it: You’re not alone. Sharing struggles and advice with friends or online communities can make a big difference.
A Different Kind of Wealth
Here’s something worth remembering: wealth isn’t just money in the bank. It’s also your time, your relationships, your health, and your peace of mind.
While millennials and Gen Z may not be building wealth the way previous generations did, they’re redefining success in more sustainable and meaningful ways. They’re prioritizing mental health, setting boundaries, creating community, and speaking out for systemic change.
Is It Fair to Say “We Didn’t Ask to Be Here”?
Yes, that meme-like phrase may sound dramatic, but there’s real truth behind it. Many young people feel like they’ve been handed the short end of the stick — and in many ways, they have. But with awareness, smart choices, and collective action, the future doesn’t have to feel so grim.
So if you’re feeling overwhelmed by the cost of simply existing, know you’re not alone, and your stress is valid. But also know this: there’s still room to dream, grow, and thrive — even if it takes longer than it did for our parents.
Final Thoughts
The cost of living may feel out of control — because in many ways, it is. But that doesn’t mean we’re powerless. By understanding what’s going on and taking small steps toward financial stability, millennials and Gen Z can still create a meaningful, fulfilling life. It might not look like the traditional blueprint, but maybe that’s the point.
And remember: your value isn’t measured by your bank balance. You’re more than your paycheck, more than your rent, and certainly more than the economic challenges you face.
Keep going — we’re in this together.