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Millennial shuts down judgy boomers by comparing cost of 'luxuries' in 1980 vs 2025

The data backs him up.

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Millennial man says "luxuries" aren't the reason young people can't afford to live.

Millennials constantly lament the high cost of living and the fact that so-called "American dream" is out of reach for many of them. Housing prices have skyrocketed, as has the cost of a college education. Eating out has gotten drastically more expensive, and making food at home with fresh groceries is hardly any cheaper. It's just so hard, they say, to get a foothold in the modern economy. Boomers, who grew up in the 50s, 60s, and 70s, however, aren't wasting any sympathy tears.

One of the big talking points in the great American millennials versus baby boomers debate is that, yes, things are more expensive; but has the younger generation has knee-capped itself by its lavish spending habits that have prevented them from owning homes? If millennials stopped buying $14 avocado toast and $1,000 iPhones, would they be able to save enough for a down payment on a modest house?

Freddie Smith, 36, of Orlando, Florida, recently went viral on TikTok for a video in which he challenged the boomer argument with statistics from the Bureau of Labor, Federal Reserve, and the U.S. Census Bureau.

Smith believes that the older generations misunderstand millennial finances because their concept of luxury is based on 1980s economics. That's when most boomers were coming of age and buying their own family homes, and their ideas of saving up for a down payment and affording a monthly mortgage are heavily outdated.

Smith says that for baby boomers, essentials such as rent and child care were much more affordable, but items considered luxuries (TVs, CD players, computers) were much more expensive.

How is the economy different for millennials than it was for baby boomers?

"The main shift is that core essentials—housing, education, healthcare, and even food—have become more expensive," Smith said. "Housing and rent, for instance, now outpace wage growth, making homeownership feel unattainable for many. The cost of childcare has also skyrocketed, and food prices have increased.”

The home price to income ratio is currently at an all-time high. The Joint Center for Housing Studies of Harvard University writes, "In 2022, the median sale price for a single-family home in the US was 5.6 times higher than the median household income, higher than at any point on record dating back to the early 1970s." That ratio was closer to 2.5 in 1980.

Even transportation has skyrocketed. Buying a new car now costs about as much as the median yearly salary, with entry-level vehicles disappearing rapidly and being replaced with high-tech, fuel-efficient offerings.

"As a result, I think older generations have a different perspective on luxury versus necessity,” Smith continued. “They grew up in a time when hard work typically led to financial stability, whereas today, even with hard work, many people struggle with the high costs of housing, rent and medical expenses. Basic survival used to be far more affordable, allowing people more financial room to build a stable life."

  - YouTube  www.youtube.com  

Smith’s numbers don’t lie. For a person in the '80s to own three TVs, a CD player, a cellphone, a microwave, and a computer, it would cost them 3.5 years of rent or a 20% downpayment on the average home. So, it was irresponsible for someone in that period to purchase all of what was known then as luxuries.

However, for millennials, these "fancy toys" are a lot more affordable compared to the big ticket items of housing, childcare, and college education. Skimping out on them won't make a meaningful difference in the attempt to save up the massive amount of cash required for a down payment on a modern home. To wit:

"But if you skip that daily $6 Starbucks drink, you’ll have enough for the downpayment in 29.22 years," Yokahana joked in the comments.

"I hate that housing and transportation have become luxuries," Molly added.

"Imagine spending 3x your rent on a microwave," Donutdisaster wrote.

Older people may see millennials with multiple TVs in their home, along with iPhones and tablets, and think that money could be better saved up in service of the "American dream." But the truth is that those savings won't really help, and worse, they'll make life pretty unenjoyable in the meantime!


Why are luxury goods more affordable now than they were in the '80s?

The price of manufactured goods has steadily fallen over the last few decades due to technological improvements and trade policies that have allowed the U.S. to import goods from places where labor costs are cheaper.

"International, global competition lowers prices directly from lower-cost imported goods, and indirectly by forcing U.S. manufacturers to behave more competitively, with lower prices, higher quality, better service, et cetera," Sociologist Joseph Cohen of Queens University said, according to Providence Journal.

Even as recently as the early 2000s, a high-quality TV was likely to cost over $1,000. Nowadays you can get an equivalent, or better, television set for just a few hundred bucks.

Why are housing prices so high?

Housing prices in the US have soared due to the low inventory caused by the Great Recession, mortgage rates, and zoning laws that make building more challenging.

 Rents have increased considerably since the pandemic due to low inventory, inflation, barriers to home ownership, and the fact that more people want to live alone than with a roommate or romantic partner.

Smith’s breakdown of the economic changes over the past two generations makes a strong case for the idea that millennial financial troubles have more to do with systemic problems than spending habits. The boomers got a bad deal regarding luxury items, and the millennials with necessities. Wouldn’t living in a world where both were affordable in the same era be great?

This article originally appeared in February. It has been updated.

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Growing up poor can make you grateful for little things others take for granted

Even years after gaining financial stability, being able to afford "small luxuries" still feels surreal.

Photo credit: Canva

Fresh flowers are a huge splurge for many people.

People who grow up with financial stability—not necessarily wealthy or well-off, just financially comfortable—may not have any clue what it's like to truly worry about money. Not being able to afford everything you want is vastly different from not being able to afford everything you need, and those in the latter category have experiences and relationships with money that are unique to being poor.

In fact, as a thread on X shows growing up poor can create a lifelong perspective on spending money that ultimately leads to gratitude for things others often take for granted. A post asked people who grew up poor but are now financially stable to share small luxuries that still feel surreal, and the answers are eye-opening. Those who didn't grow up poor might expect answers like "being able to buy name brand shoes" or "being able to afford a concert ticket," but the "small luxuries" are a lot less luxurious than that.

 
 

"Real food storage containers, not the used margarine and cool whip tubs!" shared one person. While some people might choose to recycle food containers that way for environmental reasons, storing food in recycled plastic containers that aren't meant for that purpose can be unhealthy. Having a set of dedicated food storage containers is a big deal.

Another response was "Just having bills on autopay." People who aren't struggling to make ends meet each month can put their bills on autopay and not worry about whether the money to pay them will be in the account on the withdrawal date. People who are struggling often have to carefully track and and manage dates and amounts so as to not overdraw their account, which leads to more fees.

 
 

Many people talked about having a reliable car:

"Having a reliable car. AC works. Tires are good and under a warranty. Seats are heated or cooled front and back. Steering wheel is heated. With a remote start so it can be warmed up or cooled off by the time I get to it. And if something does go wrong AAA will come and save me."

"Affording safe tires and vehicle repairs."

"Running AC in my car without worrying about the car overheating. When I was a kid, our cars would overheat and we had to blast the heater in the middle of summer to cool it down."

And simply filling up the gas tank? Priceless.

 getting gas, gas pump, gas station, car, luxury Filling your tank with gas feels like a luxury for many.  Giphy GIF by Andrew W. K. 

"Just pulling up to a gas pump and allowing the fuel to pump as I go in and buy a drink, all while not calculating how that will impact my month!"

"Getting a full tank of gas. My mom would get $3 at a time. I didn’t understand as a child. As an adult, I always fill up the tank. That’s a privilege."

"Being able to fill my gas tank instead of wondering how far my $10 in change would actually get me."

"Filling up the gas tank without doing math first feels rich when you grew up in a '$4 on pump 3' household."

Another luxury? Prescription sunglasses.

"Every time I put them on I'm like 'Ahhh I made it.'" wrote one person.

"I’ve had thick prescriptions since I was a kid. Never had sunglasses until well into adulthood," another share. "It’s a good feeling."

 
 

Many people shared that being able to go out to eat at a restaurant and not having to order the cheapest thing on the menu still tickles them. But perhaps the most repeated answer was about grocery shopping without calculating your way through it.

"The most common response, and also my answer, is grocery shopping without checking the prices and being able to purchase 'options.' Growing up, we had about a five year period where every meal was rice and beans or whatever we had canned from the garden harvest from the previous fall."

"Biggest thing for me is shopping for food and not really worrying about the prices. Buying my Ribeyes and coming home to enjoy cooking them in my nice whole set of iron skillets, being able to curl up in beautiful blankets, watch TV, sit in my porch rocking chair, it's the peace."

 grocery shopping, food budget, buying groceries, money, luxuries Grocery shopping is more enjoyable than stressful when you're not having to calculate every penny.Photo credit: Canva

"Grocery shopping with no set budget. Still feels great after 40 years."

"Going to the grocery store without using a calculator the whole time."

Other things like buying fresh flowers, ordering an appetizer, having a refrigerator in the garage, or not having to stress about home repairs were mentioned, all of which drove home the point: When you grow up poor, you gain an appreciation for little things that people with means just consider normal living.

 money, wallet, spending, cash, financial stability, finances Opening your wallet without worry is a small luxury.Photo credit: Canva

As one person wrote:

"It’s not the designer clothes. It’s walking into a room and not hearing debt breathing down your neck. It’s opening the fridge and not seeing struggle staring back. It’s buying two of something just because you f-ing can. People born rich will never understand the godlike power of:

- Filling your gas tank without checking your bank app

- Buying your mom that thing she never asked for

- Ordering food without scanning the right side of the menu

- Sleeping without fear gnawing at your chest."

No one should have to understand the fear that comes with being poor, especially children, but the one silver lining of growing up in financial struggle is the wonder and gratitude that sticks with you when you're finally able to let that fear go.

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People share 19 everyday things from the 90s and early 2000s that are now considered 'luxuries'

Remember happy hour specials and real wood furniture?

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Really should have appreciated some of these things when they were commonplace.

Bob Dylan sang that the times are a-changin' back in the late 70s, and since then, they haven't ever stopped a-changin'. And yes, change has been a constant for all of humanity's existence, but things certainly seem to be progressing a whole heck of a lot faster, don't they?

Before ya know it, those once fashion-forward pants you purchased are now retro, you don't understand any of the slang the kids are spouting, and you're doing your taxes, grocery planning and work meetings all from your phone. You know, that device that once only…gasp…called people.

It certainly feels like more than simply growing older, too. Technology is evolving at a rapid pace, to the point where human beings are finally having a hard time keeping up. Combine that with uncertain economic times, and it's no wonder that some folks are left reminiscing about how, in some (not all or even most, but some) ways, the good old days really were good.

Take for instance this interesting question posed by a user over on Ask Reddit. They asked: "What was normal 20 to 30 years ago but is considered a luxury now?"

Thousands of people chimed in with fascinating bits of bittersweet nostalgia. Some were monetary — just think that the price of most everyday items has increased 2-3x since the 90s. Other memories were more intangible, based on experiences you just don't get very often anymore.

Here are some of the best answers.

1. "New furniture made out of real wood."

If you regularly traffic in furniture from Target, IKEA, Wayfair, and other relatively affordable places like that, you'll recognize that furniture these days is more often than not made from particle board or fiber board, not real wood. That makes it convenient and relatively cheap, but not very durable.

 90s trends, 00s trends, 00s nostalgia, 90s nostalgia, 90s, 2000s, millennials, generations, economy Real wood furniture.  Giphy  

2. "Owning the software you purchased."

Remember the days when you just bought Microsoft Office once and were set for years? Today, the SAAS (Software As A Service) model has us paying recurring monthly fees for a million different subscriptions, for things we used to own outright. It's maddening.

3. "Paying no more than 30% of your income in rent."

One user added: "I lived in poverty housing and this was how they determined our rent. It was 30% of mom's income, regardless of how much she was making. That was 20 years ago, not sure what starving kids do today."

4. "Concert ticket prices."

The entire concert-going experience has gotten completely out of hand due to high-tech scalpers and unregulated reseller markets.

 90s trends, 00s trends, 00s nostalgia, 90s nostalgia, 90s, 2000s, millennials, generations, economy Going to a concert.  Giphy  

One person added: "17 years ago I spent $30 to see an internationally touring band play a concert, and I thought that was way too high. Now I’m spending minimum $20 to see local bands. Just on admission."

The New York Times writes that the average concert ticket for a mainstream show costs a staggering, ridiculous $135.

5. "Household products that don't break within the first few years of use."

One user wrote: "My grandma had the same fridge from 1993 before deciding to switch to a newer, bigger one two years ago. My mom's wedding cookware is still going strong 25 years later, but whenever she needs new pans, they start flaking Teflon into the food within a few months."

Today, modern refrigerators are only expected to last about 10 years and gennerally aren't worth repairing.

6. "Not being expected to be reachable 24/7."

Ah, yes, being completely unreachable was the ultimate luxury. Most of us have actually forgotten what it feels like.

7. "Being able to afford going out every Friday after work."

Remember happy hour specials? Dollar beer nights? It was easy to go out with friends or colleagues when a single beer didn't cost $11 with tip.

 90s trends, 00s trends, 00s nostalgia, 90s nostalgia, 90s, 2000s, millennials, generations, economy Grabbing a drink after work.  Giphy  

8. "Farmer's markets."

"You used to be able to go down and get fruit and vegetables cheaper than the grocery store. Now it seems like they charge 3x more than stores do," one user noted.

9. "Single income families buying a home."

Another user read everyone's mind by adding: "Buying a home in general"

If you thought inflation on everything else was bad, housing prices might be the worst of all. They've ballooned far faster than salaries have, putting owning a home completely out of reach for many young people.

10. "Good quality fabric in clothing."

"I have clothes from the 90s (and 80s from my mother) that still hold up today. These days, I'm lucky if my shirt isn't saggy and misshapen within a year," one user wrote.

Fast-fashion is everywhere now! Like appliances, our clothes used to be built to last.


 90s trends, 00s trends, 00s nostalgia, 90s nostalgia, 90s, 2000s, millennials, generations, economy Clothes that lasted.  Giphy  

11. "Items not requiring a subscription each month."

I'd love to see the average bank or credit card statement from the 90s. It must have been stunningly simple without a dozen recurring charges, from iCloud storage to Netflix.


12. "Legroom on an airplane."

You're not crazy. Flying used to be more comfortable. Planes have given up about 1-2 inches of legroom over the years, making passengers cramped and grumpy.

13. "Free driver’s education classes taught in all high schools."

Private driver's ed can cost anywhere from $500-1000 where it used to be much more commonly provided for free. Shouldn't giving the next generation of drivers thorough safety training be considered a public necessity?

14 . "Family vacations."

"I remember going on road trips regularly as a kid and even flying once or twice. Now that I have kids, I cannot afford a weeklong trip to the Badlands, Grand Canyon, Disney/Universal Studios, etc. The best I can do is a day trip to the Wisconsin Dells maybe once a year," one user wrote.


 90s trends, 00s trends, 00s nostalgia, 90s nostalgia, 90s, 2000s, millennials, generations, economy Taking vacations.  Giphy  

14. "Apartments."

"I could get a one-bedroom apartment in Wisconsin back in 1997 for under $500. Now that same apartment is at least $2,000."

Apartments are supposed to be the affordable thing! What happened?!

15. "Affordable healthcare."

Even "good" healthcare these days leaves you paying enormous of out of pocket expenses. I'm not sure healthcare in America was ever great, but it's definitely gotten worse.


16. "People making friends with one another purely because they enjoy their companionship and not because of networking."

Hustle culture has really changed the way we think about friends and leisure time.


17. "Calling a company and getting a person on the other end of the phone.

Another problem that's only getting worse with AI! They even have AI instead of people working at drive-thrus now.


 90s trends, 00s trends, 00s nostalgia, 90s nostalgia, 90s, 2000s, millennials, generations, economy Talking to humans on the phone.  Giphy  

18. "Drinking water from the tap without filters and softeners."

More and more people are using home water filters for taste and, more importantly, because they don't trust the local drinking water. Gee, wonder why?

19. "Being able to dance and have a good time without having the risk that it will end up being recorded and put on social media."

Every time you leave your house you're at risk of being pranked for TikTok or ending up in one of those life-ruining drunk "street interviews."

The 90s and 2000s were a simpler time. Not everything was better, or even great, but there was something real about it. People were more authentic, things we bought weren't so cheaply made yet expensive, and your hard-earned dollar went a lot further than it did today. We can't go back, but it's sure nice to visit every now and then.

This article originally appeared two years ago. It has been updated.


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A tale of two pairs of boots shows how the rich get richer in ways poor people simply can't

It’s not about bootstraps at all.

Photo by Maxim Hopman on Unsplash

The Sam Vimes "Boots" Theory of Socioeconomic Unfairness explains one way the rich get richer.

Any time discussions of wealth and poverty come up, people inevitably start talking about boots. The standard phrase that usually gets thrown around is "pull yourself up by your bootstraps," which is shorthand for "work harder and don't ask for or expect help." (The fact that the phrase was originally used sarcastically because pulling oneself up by one's bootstraps is physically impossible is rarely acknowledged, but c'est la vie.)

The idea that people who build wealth are able to do so because they individually work harder than poor people is baked into the American consciousness and wrapped up in the ideal of the American dream. A different take on boots and building wealth, however, paints a more accurate picture of what it takes to get out of poverty.

boots, poverty, economic inequalityA boots story shows why it can be so hard to climb out of poverty. Giphy by DurangoBoots

Author Terry Pratchett is no longer with us, but his writing lives on and is occasionally shared on his official social media accounts. In 2022, his Twitter page shared the "Sam Vimes 'Boots' Theory of Socioeconomic Unfairness" from Pratchett's 1993 book "Men At Arms." This boots theory explains that one reason the rich are able to get richer is because they are able to spend less money.

If that sounds confusing, read on:

Pratchett wrote:

The reason that the rich were so rich, Vimes reasoned, was because they managed to spend less money.

Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles.

boots, work boots, economic inequality, rich get richer, climbing out of povertyA good pair of work boots will save you money in the long run, but only if you can afford them in the first place.Photo credit: Canva

But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that’d still be keeping his feet dry in ten years’ time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet."

In other words, people who have the money to spend a little more upfront often end up spending less in the long run. A $50 pair of boots that last five years essentially cost you $10 a year. But if you can only afford $10 upfront for a pair of boots that last six months, that's what you buy—and you end up paying twice as much over a five-year period.

There are so many areas in which this principle applies when you're poor. Buying in bulk saves you money over the long run, but you have to be able to afford the bulk cost up front. A reliable car that doesn't require regular repairs will cost more than a beater, but if the beater is all you can afford, that's what you're stuck with. You'll likely spend the same or more over time than if you'd bought a newer/higher quality car, but without the capital (or the credit rating) to begin with, you don't have much choice.

buying a car, used car, new car, economic inequalityMore reliable cars cost more up front.Giphy GIF by LSD

People who can afford larger down payments pay lower interest rates, saving them money both immediately and in the long run. People who can afford to buy more can spend more with credit cards, pay off the balances, build up good credit and qualify for lower interest rate loans.

There are lots of good financial decisions and strategies one can utilize if one has the ability to build up some cash. But if you are living paycheck to paycheck, you can't.

Climbing the financial ladder requires getting to the bottom rung first. Those who started off anywhere on the ladder can make all kinds of pronouncements about how to climb it—good, sound advice that really does work if you're already on the ladder. But for people living in poverty, the bottom rung is just out of reach, and the walls you have to climb to get to it are slippery. It's expensive to be poor.

poverty, wealth, climbing a ladder, getting out of povertyIt's hard to climb out of poverty when you can't reach the ladder. Photo credit: Canva

When people talk about how hard it is to climb out of poverty, this is a big part of what they mean. Ladder-climbing advice is useless if you can't actually get to the ladder. And yet, far too many people decry offering people assistance that might help them reach the ladder so they can start taking advantage of all that great financial advice. Why? Perhaps because they were born somewhere on the ladder—even if it was the bottom rung—and aren't aware that there are people for whom the ladder is out of reach. Or perhaps they're unaware of how expensive it is to be poor and how the costs of poverty keep people stuck in the pit. Hopefully, this theory will help more people understand and sympathize with the reality of being poor.

Money makes money, yes, but having money also saves you money. The more money you have, the more wealth you're able to build not only because you have extra money to save, but also because you can buy higher quality things that last, therefore spending less in the long run.

Thanks, Terry Pratchett, for the simple explanation.

This story originally appeared three years ago.

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