Man breaks down why boomers had it 'way easier' than Millennials — and the stats don't lie

In a TikTok video, Freddie Smith laid out a stark comparison between what it meant to be a young adult in 1980 versus today, and the numbers tell the harsh truth. Smith, who makes finance-related content on his account @fmsmith319, asked viewers in his video to picture Bob and Barb, a 25-year-old couple in 1980. Despite a 14% mortgage rate, which is undeniably high, they could afford a home after just a 20% down payment, paying only about 25% of their income toward housing. If buying felt too risky, renting cost them around 14% of their income, which left enough breathing room to save and plan for the future.

Fast-forward to 2023, and the picture looks very different. To make the numbers clear, he introduced an imaginary millennial couple, Mike and Mary, earning $81,000 a year. Mary’s college degree cost $45,000 in loans, eating up about 7% of their earnings through monthly payments. Even with an $80,000 down payment, a $400,000 house would gobble up 35% of their income. Renting isn’t much easier at roughly 29% of their earnings, all while still owing student debt. Simply put, in Mike and Mary’s world, basic housing plus education costs are crushing their financial well-being.

He summed up his analysis by saying, "They either spend 35% on a house, or 29% on rent, plus they’re carrying 7% of college debt. So just those two things alone show you the difference between the boomers and the millennials growing up," and the data confirms his analogy. According to the Federal Reserve System, the median federal student loan debt now sits between $20,000 and $24,999, meaning half of borrowers owe at least that much. Plus, according to a Money Geek survey, home price-to-income ratios have nearly doubled since 1980 — from about 2.5 to 4.4 today — translating into higher housing costs relative to paychecks.

His comparison sparked plenty of conversation, with many agreeing. @paninimadness commented, "The first mistake is trying to explain anything to boomers. They don’t want to hear it. They need validation and praise." @indigo_beach added, "Oh my God. My husband and I are Bob and Barbara. He’s a Boomer, but I’m Gen X. And we both know you’re right." @beth68173738 wrote, "I’d also like to add that I believe products before the 2000s were better quality, therefore did not need to be replaced as often." @kandet9818 shared, "Gen X here, and I can’t figure out why people don’t get this. We didn’t get what boomers did, but it was still easier than now. I worry for my children."

Still, not everyone agreed. @mmcd53 commented, "As Boomers, we had starter homes and secondhand cars and furniture. We never ate out. Going out was to a friend’s place." And turns out, it's true — a 2024 analysis shows Boomers spend significantly less on dining out as a share of their food budget, which is 41.7%, compared to 47.3% for millennials. Moreover, a breakdown from ClearVoice shows millennial households spend about $2,135 annually on apparel, compared to just $1,289 for baby boomers. @oolohip added, "We expected far less. But there were no Starbucks, pedicures, spas, expensive dinners, designer clothing, or fancy cocktails. Huge wardrobes weren’t a thing."

You can follow Freddie Smith (@fmsmith319) on TikTok for more finance content.

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