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Woman explains how the young generation 'have low wages' but can still afford nice things

Despite not being able to afford a house, the younger generation is still somehow managing to splurge on luxury vacations.

Woman explains how the young generation 'have low wages' but can still afford nice things
Cover Image Source: TikTok | @firstgenliving

The millennials and Gen Z deal with their finances differently than their previous generation. The boomers and Gen X might have been able to afford their properties and live a comfortable life while building a family, but the younger generation is not following in their footsteps anymore. Some of the folks from the older generation often wonder why the younger generation is not too inclined towards saving money and instead, they are splurging on having experiences in present times. Maria Melchor, a Yale graduate living in New York City, made a TikTok video on her page @firstgenliving, where she often shares financing videos for the younger generation.

Image Source: TikTok | @firstgenliving
Image Source: TikTok | @firstgenliving

In her video, she shared why she thinks young people seemingly afford nice things and take foreign vacations despite not having enough money on their name. "When older people ask me how young people are affording nice things that they wouldn't even buy for themselves, I tell them it's because we can't afford anything else," she says at the beginning of her video.

Image Source: TikTok | @firstgenliving
Image Source: TikTok | @firstgenliving

"Homeownership or starting a family is so out of reach that we're using that down payment or kid money on whatever it is we can't afford that'll bring us a semblance of the kind of adulthood we were promised," she continues. "When houses are a million dollar plus and an older couple will likely outbid us anyway, we're gonna relinquish any lingering delusions about homeownership." She jokes about using that money to give their pets the most "enriched" life instead. People could not help but agree with Melchor.


 
 
 
 
 
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A post shared by Maria Melchor | Financial Content Creator (@firstgenliving)


 

@y0soygladys wrote, "My mother asked me when I'm gonna stop traveling and buy a house. I can't afford a house, but I can travel." @lactoseintolerant quipped, "Future is not guaranteed and everything is crumbling before our eyes. Enjoying what we have while we can is the way to go." @kochosimp remarked, "Older people telling me I should wait till I'm old to have fun, knowing I'll be weak and could have health problems at 60." @queenxestelle remarked, "For homeowning, it's barely about saving anymore. It's more so like you either have the money or help or you don't."

Image Source: TikTok | @angelaramburuzabala
Image Source: TikTok | @angelaramburuzabala

@alohaitsme00 gave an example of differences in financial realities and wrote, "Houses are legit 1M+ and our families bought those same houses for less than 200k, make it make sense!" @maddierobinart added, "It's also just about general happiness because certain things are out of reach also the future doesn't feel stable, so we enjoy while we can." To explain this further, a realtor also made a video detailing all the circumstances due to which the current generation can't afford housing as easily as their parents anymore. 

Image Source: TikTok | @insomniatattoos
Image Source: TikTok | @insomniatattoos

Freddie Smith–who goes by @fmsmith319 on TikTok–made a viral video to explain why it's so difficult for millennials to buy homes right now, even though mortgage interest rates are significantly lower than when baby boomers were buying. He mentioned how the millennials and Gen Z adults who can afford a home are frequently born into wealth. "Any time a millennial is trying to explain this to a boomer, they use the same example," Smith says in the video.

Image Source: TikTok | @fmsmith319
Image Source: TikTok | @fmsmith319

"They go, 'Well, my interest rates were 15 percent, you have six and a half, you're so lucky.' Well, let's look at it this way. If you bought a house for $80,000, back in the '80s, a 20% down payment would be $16,000, and the average person was making around $30,000 back then. So, your down payment was just half your yearly salary. And then the loan you would have on it would be about $60,000," he added. As a result, Smith rarely sees people under the age of 50 looking to buy a home.

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