upworthy

finances

Democracy

Millennial shares a spot-on theory about why his generation and Gen Zers are so burned out

They're not lazy, they're exhausted.

via Canva/Photos

A woman is feeling major burnout.

Freddie Smith is a popular TikToker and host of The Freddie Smith Podcast, where he talks a lot about income inequality and finance from a down-to-earth perspective. One of Freddie’s biggest topics of focus is how the younger generations, millennials and Gen Z specifically, have it a lot harder than their Gen X and baby boomer counterparts. Recently, he described why he believes the younger generations feel so burned out: They are spinning their wheels and not getting ahead because of the rising cost of living. This counters the boomer notion that young people are entitled and lazy.

“They're working 40 hours a week, but at the end of the month, they have nothing to show for it. So if you're not making any progress and you look back five years and go, damn, I made $300,000 in the last five years or I made $400,000 in the last five years and I have nothing,” Freddie says. “If, anything, I have $25,000 in debt, that's gonna create burnout cause you feel like you just put in 5 years of work and have nothing to show for it.”

@fmsmith319

Why Millennials and Gen Z are facing burnout

Freddie adds that the younger generation's inability to get ahead leaves them constantly strained. They are stuck in apartments and can’t grow their families, or if they do, they don’t have the same quality of life that they were raised with.

“It's the 30% increase in rent prices where people are spending 40% of their money on rent, you're still being taxed 20, 25, 30%. People just don't have any money,” Freddie adds. “People aren't having kids, and they're unable to start families. People are struggling financially, fighting financially, and suffering in relationships. This is all decline in living standards.”

stressed woman, stressed millennial, financial stress, burnout, gen z stress, young womanA young woman is stressed about her future.via Canva/Photos

Feddie’s numbers are backed up by research, and the biggest significant issue that younger generations face is the price of home ownership. Adjusted for inflation, in 1985, the average home cost $96,985 in today's money. However, the average price of a home today is a whopping $426,100. Rent is a little better, but still tough. The average rent in 1985 cost $1,031 in today’s dollars; in 2023, the average rent is $1,406.

In a video published in November 2024, Freddie did the opposite and shared five reasons baby boomers had it much easier than millennials and Gen Zers.

  1. You could buy a house for 30 to fifty thousand dollars
  2. Union jobs were more prevalent
  3. College actually worked
  4. Social Security was actually strong
  5. The invention of 401(k)s
@fmsmith319

Why Millennials and Gen Z have it harder today compared to boomers

“The boomers always come at us and say ‘Why are you saying it was easy I was living paycheck to paycheck. You don't realize how hard it was.’ Look at all the advantages you had and how hard it still was,” Freddie says. “Think about the kids today, they cannot buy a house, union jobs aren't available, college is completely out of whack. They're spending 80 grand to get a job for $50,000. It's backwards.”

Freddie makes a strong case for millennial and Gen Z burnout. Because, face it, there’s nothing more exhausting than grinding away at something and not moving an inch. At the same time, things only become harder. Rent goes up. A carton of eggs is $8; if you are fortunate to have money in a 401k, it no longer feels safe. “Humans are good at adapting,” Freddie concludes his video. “But there's a fine line between adapting and being taken advantage of. And I think we're being taken advantage of.”

From Your Site Articles
millennials
Pop Culture

Middle class families share how much money they have in savings and it's eye-opening

"I transfer money each paycheck but always end up needing to transfer it back."

Photo by Karolina Kaboompics/Pexels

Many middle class families are sharing that they have nothing in savings right now.

According to an April 2024 Gallup poll, 54% of Americans identify as part of the middle class, with 39% identifying as "middle class" and 15% identifying as "upper-middle class." That percentage has held fairly steady for years, but for many, what it feels like to be a middle class American has shifted.

Notably, inflation caused by the pandemic has hit middle class families hard, with incomes not keeping up with cost-of-living increases. Housing costs have skyrocketed in many areas of the country, mortgage interest rates have risen to levels not seen since the pre-Obama era and grocery bills have increased significantly. One government study found that cost of living has increased between around $800 and $1,300 a month depending on the state since 2021, putting a squeeze on everyone, including the middle class.

One woman shared that her family is just getting by and asked other people who identify as middle class to "chime in" with what they have in their savings account.

"I swear, every paycheck I am putting money into my savings, but needing to transfer it back within a few days," shared @abbyy..rosee on TikTok. "My registration is due. My husband's registration is due. He needed two new tires, even though they had a warranty. That's $300. My oldest needs braces, he needs a palate expander, that's $120 a month. Not to mention groceries are $200 more a week. Forget about feeding your family great ingredients because who has $500 a week to spend on perfect ingredients to feed your family?"


@abbyy..rosee

somethings gotta give #savings #middleclass #relatable

She explained that her husband makes enough money that they should be able to live comfortably, and that she quit her job because the cost of daycare was more than she was making.

"At some point, something has to give," she said. "What is going on? How do I save money?"

People in the comments chimed in with their savings account totals and it was quite eye-opening. Many people shared that they have $0 saved.

"We make the most money we ever have and have zero savings. We live paycheck to paycheck and every month I don’t know how we get by."

"I think the middle class is 1 personal disaster away from bankruptcy."

"Y’all got savings accounts?!?! 😂"

"I used to freak out if I had under $10k in savings, now I’m happy when I have over $150. 😫"

"We make almost 100,000 a year with no savings!!!! It's always something!!"

"I'm lucky if we have $500-$1K for an emergency. every single time we start saving something happens. the vet, the cars, the kids... something."

"Savings account? I transfer money each paycheck but always end up needing to transfer it back. My husband makes great money too but we are scraping by."

"$803 but we have to pay a $750 deductible this week b/c my Husband hit a deer soooo… back at it 😭 It’s exhausting. Constantly draining it, refilling it, transferring."

Some people shared that they do have some savings, but several said it was because they'd had an inheritance or other chunk of money come their way. Many people shared that their savings has dwindled as increased costs have taken their toll. Some people gave lifestyle advice to save money, but most agreed that just the basics have gotten so expensive it's harder to make ends meet much less put extra into savings.

Thankfully, the inflation issue appears to be waning, but even just plateauing at their current financial reality isn't ideal for many American families. Middle class is supposed to be a comfortable place to be—not rich, but well enough off to feel secure. That's not how many middle class folks feel, though. Most Americans don't have anything close to the amount of money saved that is recommended across the age spectrum, but at least hearing that others are in the same boat is somewhat comforting.

It can be vulnerable to put your financial reality out there, but it's helpful to hear what other people are doing and dealing with so we all feel less alone when we're struggling. Perhaps if people were more open about money, we'd all be able to help one another find ways to improve our financial situations rather than lamenting our empty savings accounts and wondering how to change it.


This article originally appeared last year.

From Your Site Articles
economy
Joy

Bank teller reveals the amount in your savings account that means you're wealthy

It's less than you think.

via Canva

A bank teller goes over some paperwork with a customer.

Economists and political pundits can talk until they are blue in the face about the state of the economy. Still, one person will probably give you the best answer when asked how the average person is doing these days: your local bank teller. After all, they see people’s bank balances all day and get a good sense of when more people are struggling or doing well.

People are private about money, so it’s hard to know whether we are doing it as well as our peers. But TikToker Sarena (@SimplySarenaWellness) who posts typically about health and fitness, but works at a credit union, shared what the average person’s bank account looks like, and many folks are clearly living paycheck to paycheck.

A commenter prompted the discussion by asking Sarena: “How much do bank tellers think is a lot of money in an account? Totally understand this is subjective,” a TikToker asked.

"My personal opinion from seeing thousands and thousands of different bank accounts,” the woman said, “people who are doing pretty well financially have between $1,500 and five grand in their savings account at the credit union.”

@simplysarenawellness

Replying to @Riley the Chihuahua + Crew 🐾 Part 3 | This is 100% my opinion but there was a pattern with the people who were more on top of their finances #moneysavingtips #moneytips #moneysavinginspiration

She went on to say that people with $1500 or less in their accounts were in a precarious position. “Like anything less than like 15 [hundred] just is not enough in my opinion,” she continued. “But honestly, the majority of people didn't even have that. And the people who made our credit union their primary financial institution, most of them. Like the majority did not even have $1,000, a lot of people didn't even have $500.”

Although she stresses that she is not a financial advisor, she suggests that people with over $5,000 in a savings account consider investing their money to prevent its value from decreasing due to inflation.

In the comments, many people who work at financial institutions weren’t shocked by Sarena’s video. "I work at a bank, and 95% of people are living paycheck to paycheck," Krystal wrote. It’s funny to me that these commenters don’t seem to believe that," Sarena replied.

"15 years as a Banker here, very few people have any savings, believe it or not, most folks are living paycheck to paycheck, unfortunately," Cha-Ka added. "Yes, I agree! I worked for a credit union and it was very common for people to not have a savings at all. Most people are paycheck to paycheck," Rae-Rae added.



While it may be shocking to some that so many people are barely getting by in the wealthiest country on Earth, the bank teller’s anecdotal evidence aligns with recent studies about the country’s financial health. A study by the Federal Reserve found that only 54% of Americans have savings that could cover three months of expenses, and just 45% could cover a $400 expense with money from their checking or savings account.

Even though many Americans are far from reaching the goal, Chase Bank says that people should have 3 to 6 months of emergency savings in case they lose their jobs. The savings don’t have to be equivalent to their salary, but enough to cover basic living expenses like rent, utilities, debts, and food. It also shouldn’t include unnecessary luxuries like eating out or entertainment that can be eliminated from their budget if necessary.

From Your Site Articles
finances
Education

A guy and his friends shared their travel plans. The results perfectly explain the wealth gap.

What on Jeff Bezos's green earth did we just watch?

TikTok/@tcruznc

Sometimes you see something so mind-boggling you have to take a minute to digest what just happened in your brain. Be prepared to take that moment while watching these videos.

Real estate investor and TikTok user Tom Cruz shared two (now deleted) videos explaining the spreadsheets he and his friends use to plan vacations. They call it the "Forbes List" and it's...well...something. Watch the first one, kindly posted by @Radio_Reem on X:

So, "Broke Bobby" makes $125,000 a year. There's that.

How about the fact that his guy has more than zero friends who budget $80,000 for a 3-day getaway? Y'all, I wouldn't know how to spend $80,000 in three days if you paid me to. Especially if we're talking about a trip with friends where we're all splitting the cost. Like what does this even look like? Are they flying in private jets that burn dollar bills as fuel? Are they bathing in hot tubs full of cocaine? I genuinely don't get it.



But that's not even the full spreadsheet. It might make sense if this guy was just rich, had always been rich, and only knew rich people, therefore making have a friend group made up of multiple millionaires his norm. Surely that's the reality for some born into the 1%.

But that's not the case here. Though the video is no longer gracing TikTok, Cruz shared that he also has a "Welfare 10 List." He says this group of friends who make less than $100K a year call themselves that, and perhaps that's true. (If I were a part of this group, I might call myself a welfare case too because everything's relative and some of these dudes spend more in an hour of vacation than I spend on my mortgage each month.)

To be crystal clear, the top 5 friends on the "Forbes List" are willing to spend more than double what the guy at the bottom of the "Welfare 10 List "makes per year on a 3-day guy's trip. I don't know what to do with this information.

It's like we can see our society's wealth gap all laid out nice and neatly in a spreadsheet, only these people aren't even the uber-wealthy and uber-poor. This is just the range of this one guy's friends.

I have nothing against people who build success and wealth for themselves, and even $5 million per year is hardly obscenely wealthy by billionaire standards. But Cruz says he's known most of his "welfare" friends since college, which presumably means most of those guys have college degrees and are making a pittance in comparison with the "Forbes List." One could claim the guy making $5 million a year just works harder, but does he really work 100 times harder than the guy making $50,000? Doubt it.

Money makes money, and after a certain threshold of wealth or income, it's actually quite easy to get and stay rich without actually "earning" more money (assuming you're reasonably wise and responsible). So, maybe the guys who are willing to shell out $125,000 for a week-long trip should offer to pay the travel expenses of the friends they "hang out with regardless of income" who don't even make that in a year, since that's probably just the interest they're making on their wealth anyway.

But what do I know? This is like an entirely different world to me and probably 99+% of Americans, as evidenced by some of the responses.

Naturally, there will be a range of incomes in any group of people, but 1) most of us don't actually know how much our friends make, and 2) even fewer of us make spreadsheets with that information in order to rank our friends and figure out who can go on which vacations.

People are just endlessly fascinating. That's all I've got.


This article originally appeared three years ago.

From Your Site Articles
culture
Trending Stories