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Bloomberg, the “just eat lentils” bandit strikes again with a propaganda piece.
It is important to critically examine the factors behind such assertions. In this blog post, we will explore why it is not only misguided but also somewhat silly to suggest that Millennials and Gen Z are feeling “wealthy.”
- Skyrocketing Cost of Living: One of the primary reasons it is far-fetched to believe that Millennials and Gen Z feel wealthy is the exorbitant cost of living they face. From skyrocketing housing prices to mounting student loan debts and the ever-increasing cost of healthcare, young adults today are burdened with substantial financial challenges. The high cost of basic necessities significantly restricts their ability to accumulate wealth or feel financially secure.
- Wage Stagnation and Inflation: While the cost of living continues to rise, wages have largely remained stagnant. Many Millennials and Gen Z individuals are struggling to find well-paying jobs that provide stability and opportunities for growth. This, coupled with the impact of inflation on everyday expenses, makes it difficult for younger generations to accumulate substantial wealth or feel genuinely prosperous.
- Financial Insecurity and Debt: Millennials and Gen Z are often burdened with significant levels of debt. Student loans, credit card debt, and other financial obligations can severely restrict their ability to save, invest, or even consider themselves financially secure. It is essential to recognize that having the ability to meet immediate financial obligations does not equate to feeling wealthy.
- Limited Asset Ownership: Contrary to previous generations, Millennials and Gen Z face considerable obstacles when it comes to asset ownership. The housing market has become increasingly unaffordable, making it challenging to invest in real estate or build equity. Additionally, rising costs and limited access to employer-sponsored retirement plans make it difficult for young individuals to accumulate assets and plan for the future.
- Lack of Savings and Emergency Funds: A significant number of Millennials and Gen Z struggle to save money due to various financial constraints. A study by the Federal Reserve found that almost 40% of adults in their 20s have no savings. Without adequate savings or emergency funds, financial security remains elusive, and the idea of feeling wealthy seems more like a distant dream.
While Bloomberg’s claim that Millennials and Gen Z feel “wealthy” might grab attention, it ultimately lacks a solid foundation. The financial challenges faced by younger generations, including the exorbitant cost of living, wage stagnation, mounting debts, limited asset ownership, and lack of savings, highlight the vast gap between the perception of wealth and the reality experienced by Millennials and Gen Z. Rather than labeling them as “wealthy,” it is essential to address the systemic issues that hinder their ability to build financial security and enjoy a prosperous future.
