Life is more expensive than many young men expected.Pictures for Viesapart / Getty
Some young people appreciate themselves from the life they have imagined.
Gen Zers collects debt and fight to afford to buy a home or have children.
There are still steps that young people can take to help make their dreams come true, says Experian CEO.
Young people appreciate the life they imagined for themselves. Many Gen ZersBorn between 1997 and 2012, they collect debt and fear the “adult” turning point, such as becoming a homeowner and having children, did not reach.
“Generation Z is deeply concerned about the feasibility of achieving the life they foresee,” Business Insider Jennifer Rubin, a senior researcher of Education Research Group10, told Business Insider Jennifer.
“Growing living costs, tuition fees and unstable labor market have made turning points such as ownership of homes, financial independence, and even even career stability It seems more out of reach than ever before. “
As a group, they have approximately 30% more debt on a credit card than the millennials worked at their age even after inflation, Transunion data show. They are also the most likely group to maximize credit cards and become a delinquent Payment data is shown by New York FED data.
Alyssa Schaefer, General Director and Chief Officer of Keybank Experience, Laurel Road, a digital banking platform, said that the uncertainty of repayment of the debt of the student loan was “the long-term consequences on the financial milestone of young people”.
She quoted a survey ordered by her company in partnership with Luminine, a professional educational and network platform, conducted by Kantar last fall.
Out of 1,714 adults in the US -Us surveyed private or federal student loans, 79% said fought In order to save for emergencies or retirement, 75% said they couldn’t invest, 52% said they couldn’t afford to buy a home, and 35% said they were delaying children. Most respondents were 25 to 44 years, while the answers were collected at the age of 18 and 65.
List data show that home -owned rates have fallen from almost 44% in 2004 to 37% last fall, and the percentage of adult children between the ages of 25 and 34 Still living at home He climbed from a younger than 11% in the early 2000s to 16% in 2023. This is at least a partial function of the price of houses that are running to record levels and mortgage rates that have grown to two decades.
Enrique Martínez García, head of the International Group of the Dallas Feda Research Department, would say -in spiric generational progress has “deep” social and economic consequences.
People Getting longer To make the partner and make the children suffocate the population and economic growth, he said. Those who I can’t afford a home They lack a reliable strategy for the construction of wealth that supports total demand in the economy.
Prices of people also prevent them from moving all over the country to where their work is most valued. They can also have Less or no children And lean pensions, Martínez García said.
Whether it is paid for day care, build a faculty fund, connecting family vacations, or simply covers the living expenses of a completely different person or more people, having children Many costs attached.
“The young people we spoke with were definitely worried about whether they would be able to earn enough for families,” Robert Katz, co -authored “Gen Z explained: the art of life in the Digital age” and an older scientist at Stanford University, he said.
A survey of the 2023 research center of adults without children, under the age of 50, revealed that among those who said that they probably would not have children, 36% said that the main reason was they I couldn’t afford to raise them.
It is easier than ever spending money when applications like Instagram and Tictoka serve as virtual shopping centers, influencers invite their followers to imitate their lavish lifestyle, and digital payment services such as Apple Pay Pay Afterpay makeup makeup buying things quickly and painless.
Keisha Blair, Guru and the author for personal finances, said that “the convenience of digital payments and network transactions makes impulsive consumption more accessible than ever” for Gen Z.
“Social media further enhances this, exposing them to the constant flow of influencers and aspirational lifestyles, stimulating the culture of current satisfaction and increased consumerism,” she added.
Blair said that gene Zers that end up in a long and lagging on their payments damage to their credit results. This could prevent them from obtaining a car or home financing and frustrating their efforts to build wealth and become financially independent, she said.
Schaefer Laurel Road said –It that Instagram ads thus precisely targeted She often clicks and buys the item. But when she is afraid to buy an impulse, she will leave the product in the basket for at least 24 hours to give her time to decide if she wants it really.
Young people may feel like the odds are stacked against them, but they can still take “concrete steps to realize their dreams,” said Rod Griffin, Senior EXPeriana director for education and advocacy of consumer, for Bi.
Recommended downloading control to drawing and adherence to the budgetSetting up achievement goals, searching for professional guidelines if necessary, reduce the impulse purchase and removal of “cunning costs”, such as subscription fees.
Gen Zers can also neglect the goals of past generations and instead focus on fulfilling their own. Elizabeth Husserl, author of the book “Power enough: Finding joy about money,” she would say -that the achievement of classic milestone for adults is not always as useful as people expect.
Young people can be intentional and priority “meaning, sufficiency and fulfillment an relentless aspiration“Husserl said. Once it is clear to them what really matters to them, they could decide to live in order to reduce the cost of living space or take alternative education to avoid debt collection, she said.
They can “redefine wealth according to their own conditions”, perhaps buying a house with a friend, or avoiding corporate grinding In favor of the side crowds that offer flexibility and align with their personal values, she added.
