Why Gen Z’s adult dreams are crushed and what they can do about it
Life is more expensive than many young people expected.Viewapart / Getty Images
Some young people are priced from the life they imagined for themselves.
General Zers is building up debt and struggles to afford to buy a house or have a child.
Experian executives still have steps young people can take to make their dreams come true.
Young people are being deprived of prices from the lives they paint for them. Many ZERS GENborn between 1997 and 2012, fearing “adult” milestones such as becoming a homeowner or having children, or fearing having children.
“Generation Z is deeply concerned about the possibility of achieving the life they envision,” Jennifer Rubin, senior researcher at Foundry10 at the Educational Research Group, told Business Insider.
“The increased cost of living, tuition fees and the unstable job market have created homeownership, economic independence and even milestones. Carrier stability It looks more out of reach than ever before. ”
As a group, they still have around 30% more credit card debt than millennials did after inflation, Transunion data shows. They are also the most likely cohort to get the most out of your credit card It will be delinquent New York’s Fed data shows payments.
Alyssa Schaefer, general manager and chief experience officer of Laurel Road, a digital banking platform, owned by Keybank, said the uncertainty regarding repaying student loan debt “will have a long-term impact on young people’s financial milestones. It’s exerting it.”
She cited a survey commissioned by the company in a partnership with professional education and networking platform Luminary, which was conducted by Kantar this fall.
Of the 1,714 US adults surveyed with private or federal student loans, 79% said I struggled To save money due to emergencies or retirement, 75% said they couldn’t invest, 52% said they couldn’t afford a house, and 35% said they were delaying having children. Most respondents were between 25 and 44 years old, and responses between 18 and 65 years old and older were collected.
Census data show that homeownership rates have fallen from almost 44% in 2004 to 37% this fall, falling in the proportion of adults between 25 and 34 years old. I still live at home It rose from under 11% in the early 2000s to 16% in 2023. This is at least partly a function of racing to a surge in record levels and mortgage rates over two years of high.
Enrique Martinez Garcia, international group head of the Dallas Fedo research division, told BI that progress in a slower generation will have “deep” social and economic consequences.
people It will take time To partner and have children, he said, can suffocate population and economic growth. Those I can’t afford to buy a house They are missing out on a reliable wealthy strategy that supports the overall economy’s demand.
Also, pricing for people prevents them from moving around the country to where their labor is most valued. They may have one too Few or no children And slimmer retirement savings, Martinez Garcia said.
Having children, whether you pay for daycare, build university funds, use family vacations, or simply cover the cost of living for others or multiple people. can There are many attached costs.
“The young people we interviewed were undoubtedly worried about whether they could make enough money to have a family,” explained Roberta Katz, co-author of Gen Z: Digital The art of living in the times,” he told Stanford Senior Scholars University, BI.
A 2023 Pew Research Center survey of US adults with no children under the age of 50 found that 36% of people said they were unlikely to have children. I couldn’t afford to raise them.
Apps like Instagram and Tiktok act as virtual shopping malls, encouraging influencers to emulate their followers with a luxurious lifestyle, and digital payment services like Apple Pay and Afterpay Make are now more than ever before It’s easy to waste money. Get things quick and pain away.
Personal finance leader and author Keisha Blair told BI that “the convenience of digital payments and online trading will be more accessible than ever” for Gen Z.
“Social media further amplifies this, exposing itself to the constant flow of influencers and ambitious lifestyles, fostering a culture of immediate satisfaction and growing consumerism,” she added.
Blair says General Zers can get caught up in debt and get late in paying. It harms your credit score. It could prevent them from getting funding for cars and homes, and irritate their efforts to build wealth and become financially independent, she said.
Schafer from Laurel Road told BI that’s the case with Instagram ads. Accurate target She often clicks to buy items. But when she is afraid of making an impulsive purchase, she leaves the product in her cart for at least 24 hours to give her time to decide whether she really wants it or not.
Young people may feel that odds are piled up against them, but they still “can take concrete steps to achieve their dreams,” and Experian’s consumer education Rod Griffin, senior director of advocacy, told Bi.
He recommended to control it Create and stick to your budgetset achievable goals, seek professional guidance when necessary, eliminating “despicable costs” such as reduced impulse purchases and subscription fees.
General Zers can also ignore the goals of past generations and focus instead on realizing their goals. Elizabeth Husserl, author of The Power of Lont: Finding Joy in Relation to Your Money, says that achieving classic adult milestones is as rewarding as people expect. He told BI that it’s not limited to it.
Young people are more intentional and can prioritize meaning, sufficiency and fulfillment Relentless effort“Husserl said, once they’re clear about what’s really important to them, they might choose to have a co-live to cut housing costs or pursue alternative education to avoid debt buildup. Maybe, she said.
Perhaps by buying a house with friends, they can “redefine wealth on their own terms” or Avoid corporate crushing She added, in favor of side hustles that offer flexibility and align with personal values.
