18 People Share The Financial Differences Between Them And Their Parents

Millennials (aka Generation Y) are people born between 1981 and 1996. Meanwhile, members of Generation Z (aka Gen Z or Zoomers) were born between 1997 and 2012. Anyone born after that is currently considered a member of Generation Alpha (Gen A).

So, even though many Millennials are still relatively young, many of them are hoping to settle down, own a home, and get promoted to higher positions. But similar to members of Gen Z, some Millennials find that they’re stretched thin financially.

The World Economic Forum found that a whopping 42% of Millennials and 35% of Gen Z rank the cost of living as their top concern. In the meantime, 23% of Millennial respondents see climate change as the second biggest concern, followed by unemployment (20%), healthcare (19%), and personal safety (18%).

For Gen Z, the second biggest concern, according to the WEF, is unemployment (22%). Climate change ranks third (21%), followed by mental health (19%) and personal safety (17%).

As reported by Business Insider, the staggering rent that many young people pay has left them concerned they might never be able to afford property of their own in the future. They’re venting about the unfairness of it all on platforms like TikTok and elsewhere on social media.

Statista points out that based on the data from the third quarter of 2023, 51.3% of the total wealth in the US was owned by the Baby Boomer Generation. Millennials owned just 9.3%. While this might sound unfair to many young people, things might not be as financially grim as they might first appear.

CNN recently reported on the findings in The Wealth Report about how American Millennials are getting ready to inherit a whopping $90 trillion in assets by 2044. In short, in a relatively short span of time, they’re going to become the most wealthy generation. However, this doesn’t mean that every Millennial is going to pop the champagne in celebration: whether or not you stand to inherit anything is all down to luck. 

Bored Panda asked the author of the thread about the biggest financial challenges that they think Millennials face these days. According to them, it’s having to “rely solely on 401ks and not have access to pensions.”

“It’s proof that loyalty doesn’t mean what it used to, but we all grew up with the same advice: that loyalty is key and would be rewarded. I know people who started working somewhere at 18 and got raises and promotions and never even considered leaving. They took care of the company and the company took care of them. That doesn't happen anymore," u/Asmothrowaway6969 said.

Though they don't think that it was easier to earn money in previous generations, every dollar used to go further. “Dollar for dollar, people make more now, but they struggle more, too.” A major problem, in their view, is "making twice what your parents did and not being able to achieve half of what they could."

The redditor finds the entire situation very disheartening. "We followed the advice we were given, but we're not getting the same rewards. Corporations have taken all that they gave to those before us because they were allowed to. When will we demand better? From them, from our government, from everything? Millennials are often accused of thinking they are owed certain things. I think we are just demanding what everyone before us got."

Bored Panda also reached out to personal finance expert Sam Dogen to hear his thoughts about building up a sense of financial security, as well as how Millennials might be affected as they are set to inherit a vast amount of wealth from the older generations.

Dogen urged Millennials to cultivate a stronger relationship with their parents. "They are the ones who have likely accumulated wealth during a prolonged bull market and purchased homes at lower prices than today. Naturally, parents desire to assist their children in owning homes and achieving financial independence. However, they may also fear spoiling their children and fostering a sense of entitlement," the founder of 'Financial Samurai' told Bored Panda in an email.

“For mature adult children who approach the situation thoughtfully, they can effectively rely on support from ‘The Bank of Mom & Dad’ to help with significant expenses like buying a home, purchasing a car, or starting a family. It’s essential for adult children to develop emotional intelligence and navigate this dynamic with sensitivity. It's worth noting that parents are often wealthier than their children realize, and their primary goal is to provide the best opportunities for their children."

According to Dogen, Millennials "must be ready" for the generational wealth transfer that will happen in the coming decades. "This readiness involves consulting with an estate planning lawyer to minimize taxes and fees and to ensure the continuity of their parents' legacies," he said.

"Beyond legal preparations, adult children should foster stronger relationships with their parents while they are still alive. Moreover, they should educate themselves about various financial matters, including investing in stocks, managing real estate, and taxes of all types."

Dogen warned that "it's crucial not to let decades of sacrifice and asset accumulation go to waste after inheritance." He added: "Luckily, most Millennials inheriting significant assets will be in their 40s and older, meaning they should have the maturity to make better decisions."