(Closed) Generational Divide

posted 3 years ago in Family
Post # 122
Member
2394 posts
Buzzing bee
  • Wedding: October 2016

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jannigirl :  Millenial here. I would LOVE to buy a home as would my husband. But loans are harder to get and we can’t manage to save a down payment because rent is more than our mortgage would be. My parents were making $10 an hour when they custom built their first home in 1990. My dad drove a new BMW. We make $18 an hour and drive cars that are 10+ years old. Money just doesn’t go as far. Cost of living is getting higher every day and wages have not gone up in accordance with that. Using an inflation calculator my parents would be making $24 an hour in 2018 and their house first house which they purchased in 1983 was $38,000. In todays money that would be $90,000 and you literally can not find anything that cheap. You really can’t even find anything structurally sound enough to pass inspections for less than $130,000 in my area which is very low compared to others and that would get you about 2 bedrooms one bathroom and no basement (not great in Tornado Alley) and it would probably have carpet and vinyl that was 30 years old and essentially need gutted. My parents managed all of that with nothing but a high school degree. I am fortunate to work for a family owned business or I would not be making what I am and I don’t even make much. Everything in my area wants a bachelor’s degree, and 3-4 years experience and starting pay is about $13 an hour. If you look into the numbers and look at inflation and cost of living you will see it’s not that we are making a choice not to have these things, we want them desperately and are working ourselves sick to get them but they always seem just out of reach. 

Post # 123
Member
5234 posts
Bee Keeper
  • Wedding: October 2017

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beethree :  

I’m not a Medicaid expert, I only know my bils situation, I did a lot of reading when I was pissed at him lol

We are switching from self insured to another insurance plan. Self insured was amazing, if we used one of our hospitals, we had no deductibles or coinsurance. That all changes in January and we will be having medical bills we haven’t had before, as well as one large one if we have another baby.

I stressed so badly when I found out about the change, and we didn’t even get plan information for a few months after that.

Medical expenses are no joke

Post # 124
Member
735 posts
Busy bee
  • Wedding: September 2012

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Sansa85 :  so how does “financial over achiever” penny qualify ? 🤔

Post # 125
Member
5234 posts
Bee Keeper
  • Wedding: October 2017

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londonchick :  

She doesn’t know either ☹️

Post # 126
Member
617 posts
Busy bee

You sound like my mum, who is almost 60. She thinks the epitome of success and being a good person in life is buying a house. She has so much praise for any one of her friend’s children who she hears of who have bought a house, like they are just the most amazing person and “so smart”! I on the other hand am a huge disappointment because I am 35 and haven’t bought a house (I have travelled a lot, got a degree and have kids though) and don’t have a huge mortgage like all of those amazing people! I consider myself a very kind, worldly-wise, loving and open-minded person, but because I don’t own a house and do things the way she did I’m just a big fat failure and disappointment to my mum. I have so much more life-experience, education and much more open-minded than my mum was at my age (or is even now), but none of that matters because I don’t have a mortgage 😜

Post # 127
Member
129 posts
Blushing bee

So this thread appears to have gone a bit weird since my last comment, but I just wanted to leave a link to this article here for people who have no financial understanding of Millennials: https://www.vox.com/the-goods/2018/10/10/17959808/millennial-homeownership-student-loans-rent-burden

Note the part about the study that found student debt delays home ownership by seven years on average for Millennials. Some generational changes are true changes in goals. Some are imposed by economic circumstances.

I’m also going to leave a link to the BLS inflation calculator for those who like comparing wages/prices/etc. to those decades ago: https://www.bls.gov/data/inflation_calculator.htm I don’t feel that old. By some categorizations I’m actually a Millennial myself. But prices have gone up 50% since I was in undergrad, and that’s been a period of historically low inflation in the US. (College tuition has gone up a lot more than that.) Most Millennials came of working age during a period when the real median wage was decreasing: https://fred.stlouisfed.org/series/MEHOINUSA672N (which is simplistic – counting all workers – and probably understates the true level of the problem for younger workers).

Post # 129
Member
1452 posts
Bumble bee
  • Wedding: September 2015

Adding to 

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adastra :  ‘s citations:

http://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/

In seasonally adjusted current dollars, median usual weekly earnings rose from $232 in the first quarter of 1979 (when the data series began) to $879 in the second quarter of this year, which might sound like a lot. But in real, inflation-adjusted terms, the median has barely budged over that period: That $232 in 1979 had the same purchasing power as $840 in today’s dollars.

Also

https://www.daveramsey.com/blog/housing-trends

Let’s start by looking at the U.S. Census Bureau figures for housing prices over the decades. In 1950, the median home price was just $7,354. Wow! Fast-forward 50 years, and the median home price was $119,600. The median existing home price reported by the NAR has surpassed the record of $230,400 set in 2006 to $236,400 today.

—————

That’s the true “Generational Divide.” Things cost a lot more today, in inflation-adjusted dollars. But wages have not increased accordingly.

Typing on phone so please excuse the weird font sizes. : (

 

L

Post # 130
Member
2090 posts
Buzzing bee

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jannigirl :  clicked on this expecting some underhanded comments about how millennials are lazy, entitled brats who can’t save money, don’t value family, don’t get married quickly enough, and don’t pop out enough babies. 

 

was not disappointed. y’all should get more creative about your attempts at undermining our entire generation. you’re getting too predictable 🙄

Post # 131
Member
900 posts
Busy bee

I’m not a millennial exactly, I’m a year too old at 38. And I’m pregnant (gasp!) but you can be sure I’m not about to jump off any bridges. 🙂 No, I don’t really feel particularly geriatric either, thank you. We travel a fair bit with our 3 year old, and have a pretty active social life. We don’t anticipate that changing anytime soon save for perhaps the first few months of our second baby’s life. I very firmly believe that being financially secure makes parenting so much easier. Fertility rates in your 30s are typically not that much lower than they are in your 20s, so to perpetuate that fear is a bit disingenuous. 

Financial independence is one thing, but I’d probably jump off a bridge at the idea of an early retirement. Retirement kills, no joke. 

 

Post # 132
Member
148 posts
Blushing bee

Penny makes no sense. I read through all of her posts earlier today because her life was like watching a very interesting movie and in her earlier posts she complains that her boyfriend won’t buy her a $34k ring or something like that and she wanted it because “she comes from money and makes a lot of money and therefore had expensive taste.” And today she is bringing up Medicaid?

Girl what????? 

Your financial situation makes no sense. 

Post # 133
Member
900 posts
Busy bee

Oh, and PPs are spot on as to housing being the great divider. I look around me in the Bay Area, which attracts the best and brightest, and I see one key divide between millennials and the slightly older generation. Millennials are under enormous financial pressure, mostly due to housing that the older generation was able to buy before prices got as crazy as they are now. These incredibly talented high achieving young people are forced to rent at exorbitant rates, which only serves to reduce their savings and diminish their chances of ever being able to afford to buy housing here. Not surprising when you’re talking 200k down payments at a minimum! And because their salaries on paper seem high, they’re still stuck paying high tax bills.

But if you want to kid yourself that by merely owning a home and having your kids young, you are somehow superior and more ‘adult’, then keep deluding yourself. Also, I’m not buying the story about buying a new car, all cash, at age 16. What the hell did you do to earn that money? Or is it one of those tall Trumpian tales of amazing achievement that isn’t quite rooted in reality?

Post # 134
Member
1578 posts
Bumble bee
  • Wedding: April 2018

Hahaha

Hahaha

Hahaha.

I moved out of home at 16 and have been supporting myself since then.  I’m 26 and have been adulting for a decade. 

The people who are 45 – 60 in my family got FREE university.  

 From memory (I can’t find the stats) baby boomers median house prices were 2 or 3 times the average wage.

Banks also offered 105% loans – so you could borrow more money  than the house was worth with $0 deposit.

Currently in my city, the median house price is almost 14 times the average wage.  FOURTEEN TIMES!!  We need a 20% deposit, otherwise you’re slapped with mortgage insurance – assuming you get approved at all.  Fulltime work is harder.  I’m blessed with a fulltime job but dh has been casual (with fulltime hours) for 7 years and banks don’t like that 

Looking at more recent stats, my mum bought a home in 2006 for $180,000.  It’s in a low growth area (3 bedroom townhouse, hour away from the city, on approx. 250m2) She got it valued 6 months ago for $750,000.  Between 2009 – 2018 with constant promotions and ladder climbing, my wage has gone up from $32,000 to $55,000 per annum.  

Oh – also forgot to mention.  Many Gen X didn’t bother to save a penny for retirement.  As soon as they become 65 they get an “old age pension” paid for by the government (ie. working millennials).  The family home isn’t considered in the calculator, so my dear uncle who I love sits in his 2.5 million dollar house (it’s quite modest – just in a very good area) on a pension.  The old age pension is being phased out for my generation because it’s too expensive due to the agin population.  We are forced instead to have 9.5% of our wage taken out for our whole lives as superannuation, so we can fund our own retirements.  They got some super too, but they were allowed to take it out in one big go, so many of them did that, holidayed around until the money ran out, then moved onto the age pension.  The government realised this ruined the point of super, so my generation will only get it as an income stream.  Again a good idea, but it’s generational theft considering we are the ones paying through our taxes for many (granted, not all) to sit around for 20 – 30 years. 

Feel free to compare your circumstances to other people your age – but it’s apples and oranges to compare yourself and smugly look down on people my age. 

 (My comment got deleted somehow when I tried to fix a typo – so reposting)

Post # 135
Member
2819 posts
Sugar bee

Others have already pointed out the systemic reasons why millenials have a harder time saving and buying homes, so I won’t add there. But one thing I didn’t see mentioned (I skimmed so apologies if I missed this) is how norms around dating and marriage have changed, making it less likely for young people to marry in their 20s (which also ends up affecting finances as a byproduct since 2 incomes are easier to live on than one). Even those of us who’d have felt ready to marry younger, that’s becoming increasingly not the norm in a lot of parts of the country, which makes it hard to meet likeminded partners. I have spent my adult life in major cities on the US coasts, and I felt like before I hit my mid-late twenties guys in my age range were just not serious and did not have marriage or family on their radars at all. I tried dating older guys who were generally more commitment-minded, but that had different pitfalls. Dating has changed bigtime since the invention of online dating and app dating, and cultural norms around marrying/having kids later have changed it too. There are plenty of young women (and men!) who still want those things, though – they’re just having a harder time finding them. 

I’m now in my late twenties and my husband is in his early 30s. We’re renters; we could afford a house in most parts of the country (the mortage on a 400k house would be less than our rent) but we live in a very HCOL city, so buying here where a dinky apartment would be close to a million isn’t really an option, and since we don’t want to settle and raise kids here buying a condo in a suburb wouldn’t make sense. We have good savings, great credit, contribute to charities and volunteer. I’m halfway through a PhD program and my husband is in a professional job. We’d like kids but we do want to follow the traditional path and have a house first (or at least a larger apartment with in unit laundry), so that means waiting a couple years until we can move out of the city. That will put us having kids ideally when I’m around 30. While starting sooner would be biologically ideal, a couple years shouldn’t make a huge difference, and we will use that extra time to build savings and advance our careers.  

I totally understand the advantages of buying property/marrying/having kids on the younger side, but in the areas I’ve lived that is no longer the norm and it is hard to defy the odds. 

Post # 136
Member
900 posts
Busy bee

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bluesky355 :  Oh, is that right? Because if so, she sounds a bit.. entitled.

Ironic that that’s the term millennials often unfairly get saddled with…

 

 

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