Nearly half, or 46%, of Gen Zers between the ages of 18 and 27 rely on financial assistance from their family, according to a new report from Bank of America.
So not in high school.
And I don’t think these are millennial parents, since the oldest end of millennials would be 42, meaning to have a kid that’s 27, they would’ve had to have kids at 15… So I think this is mostly Gen X, which would be people from 43-58yo.
But why would millennials be cash-strapped? Millennials are 29-42, which should be right in the middle of their careers. They’re not at their income peaks, but they should be getting out of the child care range, which is one of the biggest expenses for a parent (at least until college years).
Gen X - dotcom bust in 2000 and then 2008 - most millenials wouldn’t be impacted too much by the 2008 crash
Baby Boomers - OPEC oil shock, stagflation in the 80s, Black Monday
Silent Generation - more frequent recessions in the late 40s, 50s, and early 60s
And so on. Historically, there’s a significant market correction every 8-ish years, on average. Most people will experience 3-4 of them during their peak earning ears, as well as one just before or just after retiring. The 2008 -> 2020 bull run was way longer than usual, and the market corrections weren’t as severe or as long as in the past, so theoretically millennials should be better off than their predecessors, assuming they invest a consistent portion of their income (big doubt).
But at least on paper, millennials are no worse off than any other generation. Student loans certainly add some complexity, but I think that balances out with historically low interest rates, with current rates being a little below the median (as in, our current “high” rates are pretty average).
So what we’re seeing is recency bias in how we remember how the media portrays things. Crises sell, so we’re going to see a lot more negative press than positive press, and we’re going to only remember the press that’s relevant to us (i.e. things from the past 5-10 years).
So not in high school.
And I don’t think these are millennial parents, since the oldest end of millennials would be 42, meaning to have a kid that’s 27, they would’ve had to have kids at 15… So I think this is mostly Gen X, which would be people from 43-58yo.
But why would millennials be cash-strapped? Millennials are 29-42, which should be right in the middle of their careers. They’re not at their income peaks, but they should be getting out of the child care range, which is one of the biggest expenses for a parent (at least until college years).
Most Millennials have been through two market crashes and many are burdened with significant student loans
That’s true for most generations, with the exception perhaps of student loans since there was a big change in 1992. Here are some examples of market corrections/recessions for each generation:
And so on. Historically, there’s a significant market correction every 8-ish years, on average. Most people will experience 3-4 of them during their peak earning ears, as well as one just before or just after retiring. The 2008 -> 2020 bull run was way longer than usual, and the market corrections weren’t as severe or as long as in the past, so theoretically millennials should be better off than their predecessors, assuming they invest a consistent portion of their income (big doubt).
But at least on paper, millennials are no worse off than any other generation. Student loans certainly add some complexity, but I think that balances out with historically low interest rates, with current rates being a little below the median (as in, our current “high” rates are pretty average).
So what we’re seeing is recency bias in how we remember how the media portrays things. Crises sell, so we’re going to see a lot more negative press than positive press, and we’re going to only remember the press that’s relevant to us (i.e. things from the past 5-10 years).