Saturday, May 20, 2017
Boomers versus Millennials
I found out something very interesting last week: I am a millennial. I never knew but I guess it’s true. Apparently, millennial’s are people born between the years of 1980 and 2000. Since I was born in 1984 I’m part of the club. Well not that I am officially a millennial I feel I have to complain, it’s what we do best right? I’m not going to complain about running out of avocado toast. I’m going to complain about our view of millennials. This view usually comes from the most celebrated generation, the Baby Boomers. My dad happens to be part of that generation. When I think about the differences between the two generations I definitely think about how different my father and I are. I take a look back at what he had to endure and what I have had to endure. I also look at what opportunities were available to him and which ones are available to me. There has been a lot of debate lately about millennials, most of it starting with the Simon Sinek’s interview. In this post, I am going to speak on what I believe are the biggest differences between the Boomers and Millenials, when it comes to your money of course because that’s what I do.
1) Why did having debt become normal?
Go back to when my Dad was growing up and it was shameful to have debt. All of a sudden as a financial advisor I am finding people who are 30-40 thousand dollars in debt before they turn 25 years old. Are you kidding me? How the hell did this happen? The answer is simple. Other millennials aren’t lending each other thousands of dollars. Other millennials don’t own universities and colleges and are jacking up the price of admission through the roof. Other millennials don’t own credit card companies and are letting anyone with a heartbeat get one. It is the generations before us that are the owners of capital that allow us to acquire debt at record levels. I hear it all the time, “If you aren’t in debt, you aren’t living!” Who said that first? Isn’t it odd that the acceptance of having debts by the consumer, and the ease to acquire it have followed the same upward trend? Seems like a very strange coincidence.
Are We Addicted to Debt? – Budget Boss
2) When did everything become so damn expensive?
I feel like an old man when I say this, but back when I was younger everything seemed a lot cheaper. I remember my mom buying a full shopping cart of groceries for $80. Try doing that for under $300 now. Well us millennials don’t own grocery stores either so what gives. My first car cost me $500 back in 2000. Good luck finding that right now. In 1992 tuition cost roughly $2100 in Ontario. In 2015 it cost over $9000, and that’s adjusted for inflation. What gives? What exactly is happening? Food, transportation, clothes, school and everything cost a lot more. It sort of ties into the debt paragraph doesn’t it?
Why does the cost of living keep rising? – Economics Help
3) Wages have become unliveable, it’s a fact
Several years ago I worked at a Royal Canadian Legion in London, Ontario as a bartender. I would come in at 5 PM to relieve the day bartender after his 8-hour shift. Tony had been working at this Legion since the 1960’s. Now over 70 years old, he told me that back when he first started he made less than 2 bucks an hour and would leave with a few bucks in tips every night. Back then he owned a house, had kids and a wife who stayed home with the kids. Somehow with paychecks adding up to around $80 he still made it work. Today he makes 6 times that and can barely afford to put a roof over his head. What has changed? Well logically as prices of goods go up so to should wages. Sadly that has not happened. Purchasing power has continued to diminish over the years until now we have a generation of people who have been priced out of the market for anything of value, like a home.
Summary and Result:
- It’s easy and acceptable to be in debt = A huge population starting their lives in large holes
- Cost of living is unreasonably high = A huge population must spend large portions of their pay on essentials
- Wages have not kept up with inflation = This same population makes less money than their parents
Who’s to blame?
A common tactic of those with power is to divide those beneath them. A divided class is less likely to focus on who is really screwing them and instead focus on the “enemy next door.” Well, the enemy isn’t our parents and it isn’t avocado toast either. The enemy is ourselves, the millennial. If we are smart enough to see a situation and not try to find a solution, or even worse fall into line, then we are to blame. Well, what’s the solution you might ask?
Solution:
A system has been put in place to keep you in debt. This system also makes it hard for you to afford your daily expenses and get a job with a decent wage. Flip the script. Don’t acquire the debt, or pay it off as quickly as possible. Don’t subscribe to the consumer lifestyle that our parents ingrained in us. Do what you have to do to get ahead and work within the system to do it. If that means more school, do it. If that means volunteering, do it. If that means hoarding your savings, do it. The system has proven itself to not care about you, so don’t care about it. Use it to your advantage. Support your local merchants and services. Don’t overpay for stuff like a car or a home. Use your dollars as a weapon. Most importantly vote in leaders that have your concerns in mind. Voter apathy is our generations kryptonite.
This generation is the most educated, most technologically advanced and most integrated ever. We have the power to shape our own futures. It isn’t our parent’s generation that forsakes us; the wrongdoer is after them too. The problem for us is the same as the solution, they came after us early. Since they came after us early there is still time. Use that time wisely and force the issue. Stand up for what you deserve, but earn it first. My dad knows that we got a raw deal, but he also knows we are smart enough to figure our way out. Not bad for a Boomer right?
“There is nothing better than adversity. Every defeat, every heartbreak, every loss, contains its own seed, its own lesson on how to improve your performance next time.” -Malcolm X
Email – joe@budgetboss.ca
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