Baby Boomers vs. Millennials – Who had it worse?
Every generation likes to think that they had it worse and the “good old days” were when they were kids. Most of us baby boomers, who are now retirement investors, consider millennials entitled and think they should shut up, grow up and start making some money without complaining.
On the other hand, millennials say their hardship was caused by greedy baby boomers who destroyed the economy when they were kids and are still climbing their way out of the mess we made for them.
Which is it? Are they just being spoiled baby’s or were they unlucky? Are times tougher for them or do they have a viable excuse?
You know I like to study demographics, so I had to figure this out for myself.
Let’s take a look at some of the statistics:
- Rent – Millennials will spend an estimated $1,358 on rent. In today’s dollars, boomers paid under $500.
- Owning your home vs. renting – millennials buying their first homes today will pay almost 40% more than baby boomers did.
- College costs – When millennials were born, the average tuition for a 4-year university was just $3,190 a year (adjusted for inflation). When they hit college age, tuition had risen 213% to today’s cost of $9,970 a year.
- Cost of living – although wages have grown approximately 67% since 1970, payrolls have actually declined since 1998 when adjusted for inflation. However, these gains have not been enough to keep up with ever-inflating living costs. Rent, home prices, and college costs have all increased faster than incomes in the U.S.
I will admit I was surprised by these statistics. Don’t get me wrong. I still think millennials are whiney, crybabies who need to get a better work ethic and get off their asses and start making some money. However, I am smart enough to know that’s what my father probably said about me and my friends.
The bottom line is that millennials will have to be more diligent with their planning, and we all know that planning for your future and investing properly for retirement doesn’t happen by accident.
If you would like to learn more about our disciplined investment and planning approach that manages risk and delivers returns, while being conscious of forward-looking tax-strategies and retirement income opportunities, contact us today for a free no obligation consultation.
Cheers -Keith Springer