The Price of Everything: 17 Things Millennials Struggle With That Grandparents Didn’t

The cost of living has gone up a lot, making it hard for many millennials to manage their money in ways their grandparents didn’t have to worry about. Millennials are dealing with money problems in many areas, such as health care and housing, and the situation is getting worse.

For instance, college tuition today is almost 1,200% higher than it was in the 1970s, turning education into a heavy financial load. If these increasing costs are not dealt with, they could create even more challenges for future generations.

In this article, we’ll explore the key areas where our grandparents enjoyed financial ease, but millennials struggle. We’ll break down how costs have risen, and the lasting impact on millennials’ ability to build the same wealth that previous generations once took for granted.

Are you finding it harder to afford the same things your grandparents took for granted? Let’s get into why that is.

Cars

Owning a car used to be easy and not too expensive. Our grandparents could buy a car without complicated loans or big monthly bills. Cars were made to last, and fixing them was cheap.

A good car could run for years with few repairs, and gas was cheaper. But now, many young people have big car bills, higher insurance costs, and costly repairs. New cars are very expensive, and keeping them running costs more.

Gas prices go up and down, making it hard to know how much owning a car will cost. For many people, having a car is a financial problem instead of a sign of freedom.

Large Family Homes

Generations ago, families often lived in spacious homes with multiple bedrooms and large yards. These homes were designed to accommodate larger families and provided plenty of room for children, grandparents, and other relatives to live under one roof. 

For many, owning a large family home wasn’t a financial stretch, and it was often considered a norm for growing families. Today, large family homes come with hefty price tags, especially in desirable areas. 

The average home price in the U.S. has risen by 118% from 1965 to 2021, while household income has only increased by 15%. This makes it extremely difficult for millennials to afford the same kind of lifestyle. 

With housing prices climbing, many millennials are forced to settle for smaller homes or apartments that lack the space their grandparents took for granted.

Buy a House with No Money Down? Here’s How I Did It!

College Education

In the past, our grandparents could go to college for much less money than it costs today. College was affordable, and many students could pay for it by working part-time jobs.

Going to university was a good choice that didn’t leave students with a lot of debt for many years. Today, young people face a different situation. The cost of tuition has gone up very high, and many students have to take out big loans.

Even with help from financial aid and scholarships, and working while in college, many young people still have to pay back their loans for years after they graduate. The cost of education is much harder for them than it was for older generations.

Weddings

Our grandparents often had simpler, more affordable weddings compared to the elaborate events that are common today. Weddings were more about the celebration of love and less about putting on a lavish show. 

Couples before could plan a wedding without incurring significant debt or draining their savings. Millennials, on the other hand, are facing much higher costs for weddings. Venue prices, catering, and even basic services like photography have all become more expensive. 

The average cost of a wedding in 2022 is around $30,000, significantly more than previous generations spent. This leads some couples to take out loans or delay getting married until they can afford the wedding of their dreams.

Family Vacations

Family vacations were once a regular part of life for many of our grandparents. Travel costs were lower, and families could take vacations without breaking the bank. Road trips, beach vacations, and even international travel were attainable for the average family. 

Today, vacations are often seen as a luxury. Airline tickets, hotel stays, and the overall cost of travel have increased dramatically. 

Many millennials find it difficult to afford the kinds of vacations their grandparents once took for granted, opting instead for staycations or cutting back on travel altogether to save money.

Health Care

Health care is another major area where the affordability gap has widened significantly between generations. For many of our grandparents, health insurance was affordable, and medical costs were manageable even without insurance.

A visit to the doctor, dental care, and even hospitalization didn’t lead to financial ruin. Today, health care costs are a significant concern for millennials. High premiums, deductibles, and out-of-pocket expenses make medical care a financial strain for many. 

Even with insurance, the costs can be overwhelming, leading some millennials to forgo necessary treatments or routine care simply because they can’t afford it.

Childcare

For many of our grandparents, childcare wasn’t the massive expense it is today. Many families were able to get by with one parent staying home, while the other worked. Even for families where both parents worked, childcare costs were much lower, and it wasn’t uncommon for extended family members to step in and help out with children.

The average cost of child care in the U.S. represents 20% of a household’s income, while it was 2% for previous generations. It has become 10 times more financially difficult to bring up a child. The lack of affordable childcare options has become a major financial stressor for many families.

This may be a significant factor in why many younger couples choose to delay starting a family, with some even opting for pets as their primary source of companionship.

🙋‍♀️If you like what you are reading, then click like and subscribe to my newsletter. We share tips to waste less time and money.

Furniture and Appliances

Back then, things like furniture and machines were made to last a long time. People bought good stuff that they thought would last for many years. Things such as fridges, ovens, and sofas were big buys that did not need to be changed often, and it didn’t cost too much to fix them.

Now, furniture and machines often cost more, and they tend to break faster. Companies plan for things to become old quickly, so they don’t last. Fixing things can cost as much as getting new ones.

This means it costs more for younger people now. They must change their machines or furniture much more often than their grandparents did.

Retirement Security

Our grandparents likely had more confidence in their ability to retire comfortably. Pension plans were common, and many workers could rely on Social Security and their employer-sponsored retirement plans to provide a stable income in retirement. 

The cost of living in retirement was also much lower, making it easier to stretch savings over time. Millennials are facing a much bleaker retirement outlook. Pensions are rare, and the responsibility for retirement savings has shifted to individuals through 401(k) plans and IRAs. 

The cost of living continues to rise, and many millennials are concerned about if Social Security will still be around when they retire. Saving for retirement is a significant challenge for a generation already burdened with student loans and high housing costs.

20 Retirement Mistakes That Many People Regret Later

Vacant Land and Farming

In the past, many people could easily buy a piece of land or start a small farm. Our grandparents often bought cheap land in the countryside to build homes or start family farms.

This link to the land helped many grow their own food or run small farming businesses. Today, land prices have gone up a lot, making it hard for young people to buy empty land or start their own farms.

Now, farmland is often too expensive for most younger people, especially those living in cities. The dream of owning land and using it for personal or business purposes feels far away for many young adults, who deal with higher costs and fewer chances.

Full-Time Domestic Help

For our grandparents, hiring full-time domestic help was much more affordable. Many families could afford to have a housekeeper, nanny, or even a gardener, which allowed them to maintain their homes and care for children without the burden of doing it all themselves. 

Domestic help was a common luxury that didn’t break the bank. Today, hiring full-time domestic help is often seen as a luxury reserved for the wealthy. The cost of nannies, housekeepers, and other household help has risen dramatically, making it difficult for the average millennial family to afford such services. 

With childcare and household costs already high, many millennials must manage without the support that previous generations enjoyed.

Life Insurance Policies

For many of our grandparents, life insurance policies were affordable and a common part of financial planning. Employers often provided coverage as part of a benefits package, and independent policies were reasonably priced. 

The coverage offered was substantial enough to provide a safety net for families without draining finances. Today, the cost of life insurance policies has increased significantly, especially for those who don’t receive coverage through their jobs. 

Millennials often find themselves choosing between basic life insurance with minimal coverage or opting out entirely due to high premiums. This means that providing financial security for loved ones has become more expensive and difficult for many younger adults.

Concert and Event Tickets

In the past, going to a concert or big event was a fun and affordable thing to do. Tickets were not too expensive, so people didn’t have to spend a lot of money to see their favorite performers or watch sports.

Many of our grandparents could enjoy live music and shows often without spending too much. Now, the cost of concert and event tickets is very high, especially for famous artists or big events.

Ticket prices often include extra fees, and when people resell tickets, it makes them even more expensive. For younger people, going to a concert or sports event is now a big expense, making it harder for them to enjoy live entertainment as often as older generations did.

Quality Public Transportation

Our grandparents often lived in cities with reliable, affordable public transportation. Streetcars, buses, and trains provided easy access to work, school, and leisure activities without the need for a personal vehicle. 

Public transportation was dependable, efficient, and a cost-effective way to navigate urban areas. For millennials, public transportation has become less accessible and less affordable in many places. Budget cuts, rising fares, and inconsistent service have made it more difficult to rely on public transit as a primary means of transportation.

In some areas, public transportation has deteriorated to the point where owning a car is necessary, even though it adds to the financial strain many millennials already face.

Utilities and Energy Costs

Back in the day, the cost of utilities such as water, electricity, and heating was much more manageable. Many of our grandparents lived in smaller homes that were easier and cheaper to heat and cool. 

Energy costs were lower, and utility bills didn’t take up a large portion of the monthly budget. Today, electricity prices have increased by 64% from 2000 to 2020, outpacing wage growth. Larger homes, modern appliances, and increasing energy demands have all contributed to the rise in costs. 

Also, concerns about climate change have led to initiatives that may further increase energy prices, making it even harder for millennials to afford basic utilities.

Clear Work Boundaries

In previous generations, work was confined to strict hours and locations. Once the workday ended, employees could leave their jobs behind, spending evenings and weekends with family or pursuing hobbies. 

The idea of work-life balance was built into the culture, with clear boundaries between professional and personal time. Today, the rise of technology has blurred these lines, making it harder for millennials to disconnect from work. 

Emails, messages, and tasks can follow them home, keeping them connected to their jobs well outside normal business hours. The constant availability expected in many professions has added stress to modern workers, who struggle to maintain a balance that was once the norm for their grandparents.

Employer-Sponsored Pension Benefits

For our grandparents, getting a pension from their employer was normal. Many companies gave pensions that guaranteed a steady income after retirement.

Workers could rely on these pensions after working for many years, which made planning for retirement less stressful and easier to predict. Now, pensions are becoming less common. Many companies are stopping them and using 401(k) plans instead.

Now, employees have to save for retirement themselves and manage their own investments. This change makes many young people worry if they will have enough money saved when they retire, which adds to their financial worries.

Millennials Face New Financial Realities 

The money world is very different now. Young adults deal with bigger costs for almost everything than their grandparents did.

From education and health to homes and childcare, young adults are facing money problems that seem impossible to solve.

Older generations could depend on retirement money, cheap schools, and homes that didn’t cost too much. But today’s young people must plan and save carefully to pay their bills.

This new money situation shows why it’s important to plan for the future and know how costs might go up. As things change, we also need to change how we handle these problems.

🙋‍♀️If you like what you just read, then subscribe to my newsletter.👈

• Over 50? A Finance Expert Shares 17 Financial Traps You Should Avoid
• Boomers Built These 28 Work Traditions, Now Millennials and Gen Z Are Rejecting Them

AI was used for light editing, formatting, and readability. But a human (me!) wrote and edited this.