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inflation

Millennials have already been through one. Could another be on the way?

Social media is teeming with theories that a recession similar to 2008 is upon us. For millennials specifically, this time period helped give them the nickname of “the unluckiest generation” as it affected student loan debt, the impossible feat of buying a home and starting a family, and the lack of available jobs—especially ones worthy of those expensive degrees.

And yet, Jenna Rohlfing, 39, argues that people get "millennial culture” during this time, really, really wrong. Why> Primarily because people don’t take into account how a lack of social media actually made a lot of the struggle much easier to navigate, which could be concerning news for Gen Zers.

In a video posted to her TikTok, Rohlfing first depicted the scene for many millennials during 2008. Yes, they had to provide their own health insurance (or go without health insurance and hope for the best), as well as pay for their rent, but what they weren’t buying were cosmetic procedures, high end hair products, skincare and makeup…i.e. the things that are marketed to Gen Zers on a daily basis.



“If you had ‘nice’ makeup, you might have gotten it at Clinique but your mom was buying it for you,” she said.

In an interview with Newsweek, Rohlfing expanded on this idea, saying that millennials, most of whom only made around $40K at the time, “didn't have large-scale social media to influence us into purchases or compare our lives to other people,” whereas Gen Zers, who grew up fully immersed by technology and influencer culture, “face a lot more pressure both socially and economically to keep up."

Judging by the comments, Rohlfing is certainly not alone in her thinking.

“Millennial culture was less status obsessed.”

“Real. ‘How did you survive?’ Maybe because there was no influencer culture and we could be poor in peace.”



“We weren’t being influenced to buy something new everyday.”

“I think one of the best things about the 08 recession was we didn't realize what we were missing. No social media to rub it in our faces.”

Furthermore, what was considered healthy during 2008 was drastically different than today, Rohlfing argued. Back in her day, noshing on cheap “Lean Cuisines” was perfectly acceptable, whereas today there is more pressure to buy organic produce.

“We had a real $1.00 menu. THat’s how we survived lol,” one millennial quipped.



“No pilates, no group exercise classes, you had a DVD of some cardio nonsense and maybe a $30/month gym membership and no cute workout sets!” another said.

Still another recalled, “I remember once paying for a McDouble and a McChicken with a Ziploc bag of dimes. DIMES.”

In essence, Rohlfing seems to be saying that, by and large, millennials weren’t up against the same levels of consumerism that many Gen Zers face today, making whatever possible recession looms already a different animal altogether.

According to some experts, the recent tariff announcements and escalating tensions between the U.S. and trade partners indicate not the return of a recession, but of stagflation, which is a combination of two undesirable economic conditions—high inflation + slow economic growth. You can also add high unemployment rates to the mix. This is also a different factor from 2008's situation.

But, really, now that we are all in a social media driven world full of pop-up ads everywhere you look, every generation can probably benefit from really aligning purchases with their priorities during this time. For millennials, those priorities probably align with some kind of Disney memorabilia.

A quiz reveals some holes in Americans' financial literacy.

Financial literacy is always important, but in uncertain economic times, it's vital. The financial world is complex and multi-faceted, and there's no exact gauge of what you need to know in order to be considered informed. There are, however, some financial fundamentals that everyone needs to understand on a basic level in order to avoid making catastrophic money decisions and to be able to follow what's happening with the economy on a larger scale.

Unfortunately, many Americans have never taken an economics class and aren't well-versed in things like inflation, investments, interest rates, and other economic realities. To be fair, economics can be confusing even when you try to learn, but without understanding some basic concepts, it can make a huge difference in your financial wellbeing.

financial literacy, money, finances, economics, economyMany Americans need to increase their financial literacy.Photo credit: Canva

The non-profit FINRA Investor Education Foundation surveyed 25,500 adult Americans and asked them to take a seven-question financial knowledge quiz to test their financial literacy. The results were a bit concerning, as only a small fraction of quiz-takers answered all seven questions correctly.

Here are the questions they asked:

1. Suppose you have $100 in a savings account earning 2 percent interest a year. After five years, how much would you have?

More than $102

Exactly $102

Less than $102

Don't Know

2. Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. After one year, would the money in the account buy more than it does today, exactly the same or less than today?

3. If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or is there no relationship?

4.True or false: A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less.

5. True or false: Buying a single company's stock usually provides a safer return than a stock mutual fund.

6. Suppose you owe $1,000 on a loan and the interest rate you are charged is 20% per year compounded annually. If you didn't pay anything off, at this interest rate, how many years would it take for the amount you owe to double?

a) 0 to 2 years

b) 2 to 4 years

c) 5 to 9 years

d) 10 or more years

e) Don't know

financial literacy, math literacy, economics, finances, money managementSome financial literacy is just math literacy—understanding percentages and probabilities. Photo credit: Canva

7. Which of the following indicates the highest probability of getting a particular disease?

a) There is a one-in-twenty chance of getting the disease

b) 2% of the population will get the disease

c) 25 out of every 1,000 people will get the disease

d) Don't know

"Don't know" was an option for each question, and the average correct score across the Americans who took the quiz was 3.3 out of 7. Nationwide, 27% of people who took the quiz got the right answers on at least five of the questions, and only 4% aced all seven questions.

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Which states fared the best and worst? Here are the 10 top states by percentage of survey respondents that correctly answered five or more of the quiz question:

1. Minnesota (34.78%)

2. Wisconsin (34.46%)

3. District of Columbia (34.41%)

4. Colorado (33.89%)

5. Wyoming (33.85%)

6. Washington (32.54%)

7. Vermont (32.34%)

8. North Dakota (32.00%)

9. Oregon (31.86%)

10 Kansas (31.44%)

And here are the bottom 5 by the same metric:

New Mexico (23.2%)

West Virginia (21.4%)

Alabama (20.2%)

Mississippi (19.2%)

Louisiana (18.1%)

One piece of good news: Americans' understanding of inflation has increased significantly since the last time FINRA did a similar survey in 2021. (Or maybe that's not such good news, as it's likely a better understanding that came from experiencing an inflation crisis, but learning is learning.)

"Overall, the findings show that knowledge of everyday financial concepts remains a challenge for many Americans. The wide disparities in financial knowledge across states demonstrate that more work is required to empower all Americans with the skills and tools to make informed financial decisions and safeguard their investments,” said Gerri Walsh, President of the FINRA Foundation. "The increase in the number of respondents who correctly answered the question about the impact of inflation on savings is an encouraging sign, likely reflecting the impact of lived experience as well as increased focus on the topic. However, continued efforts are needed to ensure all Americans fully understand the effects of economic factors on their personal finances."

Not only does a lack of financial knowledge have the potential to impact people's personal finances, such as getting into credit card debt trouble or choosing unwise investments, but not understanding how things like inflation and the relationship between interest rates and investment markets can lead people to vote for politicians with questionable economic policies. How can you believe a politician will be good for the economy if you don't understand what factors contribute to keeping the economy stable and strong?

You can take the quiz yourself here and see how your knowledge compares.

Education

This surprising map reveals the real value of $100 in each state

Your purchasing power can swing by nearly 25 percent from state to state.

Map represents the value of 100 dollars.

As the cost of living in large cities continues to rise due to inflation, tariffs and other economic factors, more and more people are realizing that the value of a dollar in the United States is a very relative concept. For decades, cost of living indices have sought to address and benchmark the inconsistencies in what money will buy, but they are often so specific as to prevent a holistic picture or the ability to "browse" the data based on geographic location.

Each year, the Tax Foundation addresses many of these shortcomings using the most recent Bureau of Economic Analysis data to provide a familiar map of the United States overlaid with the relative value of what $100 is "worth" in each state. In recent years, they've further updated their data so that you can break down the value of your money across every single metro area in the United States. It's an incredibly valuable tool with so many people considering, or having already migrated from states like California to Florida, Texas and other states with friendly state taxes rates and more affordable housing options.

The map quantifies and presents the cost of living by geography in a brilliantly simple way. For instance, if you're looking for a beach lifestyle but don't want to pay California prices, try Florida, which is about as close to "average" — in terms of purchasing power, anyway — as any state in the Union. If you happen to earn, or luck, your way into Silicon Valley tax brackets, head to Hawaii, D.C., or New York. You'll burn through your money in no time. And in some of those places like Hawaii, there are quality of life measurements that often exceed raw purchasing power.


So, where does your dollar go the furthest in 2025? The financial planning site GoBanking.com compiled its own list of cash purchasing power across each state and found that in California, you get the least bang for your buck, only $87.42 in real purchasing power for every $100 of cash. The average person in California makes $96,344, one of the higher income levels in the country. However, just living in California on average costs residents a staggering $86,408, leaving the average person with little flexibility for long-term financial planning projects like retirement, saving for a new home or even buying a new car.

At the other end of the spectrum is Arkansas, the state where your dollar goes the furthest. In fact, that $100 bill burning a hole in your proverbial wallet is in fact worth more than its technical value, with a real value of $113.49. On top of that, the cost of living is only $37,067, less than half of that in California. Further, the average cost of a new home in Arkansas is $208,743, less than one-third of a new home in California. Not coincidentally, in 2023, Arkansas was the top destination for people moving to another state within the United States, followed by Texas.

value of $100 in each state, money, economy, inflation, tariffs, Arkansas, California, Florida, TexasA woman holds six $100 billsImage via Canva

How about Florida, which has received outsized attention in recent years for its overt efforts to draw residents from California and other states with higher costs of living? According to the most recent data, Florida is in fact much closer to California than Arkansas, coming in only in 40th place on the GoBanking rankings, with $100 in cash only being worth $96.55. However, the annual cost of living is still only slightly more than half of that in California, $53,505. And if you're looking to buy some real estate, the average home is valued at $404,924. That's still well outside the purchasing power of many Americans but with built-in advantages such as warm weather and the top-ranked state education system in America, it's obvious why so many people, especially those with families, are choosing Florida over California in recent years.

According to U.S. News and World Report's data analysis, California only has the nation's 23rd best education system and is ranked a paltry 37th overall in their state rankings. It's quite a contrast for a state that bills itself on the promise on opportunity, natural wonder and positive lifestyle options. And with 2024's wildfires, the constant threat of earthquakes and other factors, California clearly has challenges beyond economics if it wants to remain one of the more attractive states in the nation.

Of course, those numbers are always in flux. And political leaders in California have promised concrete reforms in order to address the state's high cost of living compared with the value of the its social and emergency services. If you want proof of how quickly things can change, look at a similar analysis of the value of $100 in each state from 2015:


- YouTubewww.youtube.com

However, those negative statistical trends aside, California continues to have an incredible pull on our collective imagination. 423,194 Americans left their state for California according to the most recent data in 2023, placing it in third behind our previously mentioned top two states, Arkansas and Texas.

So, it's clear there are a number of factors that determine the best place of live in America. When it comes to raw purchasing power, you cannot beat Arkansas. But there's so much else to consider: public resources like education and healthcare, job opportunities (you probably won't make nearly as much in Arkansas as you might in California) and other factors such as proximity to family, friends and personal interests.

There's no doubt America is rapidly changing and that includes what people value the most when they decide where to live. In uncertain economic times, the face of America will likely change radically in the coming years, with the political, economic and social landscape shifting in meaningful ways.