Why aren't the new generations rich?

The reasons why the current generation has difficulty in building status and wealth can be summarized from various factors related to the economy as well as the values ​​in life that are different from the previous generation.

1. Wages that are not in line with the cost of living and rising inflation

• Wages in many occupations have not increased at the same rate as inflation and the cost of living have risen, making saving and investing difficult.

2. Higher educational costs

• Student debt has increased dramatically, forcing young people to start their working lives in debt, limiting their ability to save and invest.

3. Higher cost of living

• Housing, healthcare and living expenses are rising, especially in urban areas where job opportunities are plentiful.

4. Reduced opportunity to create assets

• Housing prices have skyrocketed, making traditional wealth creation tools out of reach.
• Investing in the stock market, although more accessible through applications, requires extra income and financial knowledge that not everyone has.

5. Changes in the labor market

• The economy and contract work, while flexible, lack job security, benefits and steady income, making long-term financial planning difficult.

6. Inequality

• Most of the wealth is concentrated among the older generation or those born into wealthy families, making it harder to climb the ladder.

7. Changing values

• Spending and lifestyle trends, such as luxury travel and fast fashion, sometimes make saving and investing less important to people.
• Social media encourages comparisons and unrealistic expectations of financial success, leading to stress and pressure to achieve financial success.

8. Economic crisis

• Recessions, pandemics, and other global events often disproportionately impact young people, especially at a critical time when they should be building their finances.

9. Lack of financial literacy

• Many millennials do not have access to financial education, such as budgeting and investing, which can lead to poor financial decisions.

Solving these problems requires systemic changes, such as education systems that support employment, skills adjustments to increase wages, housing reform, and improving financial literacy and long-term planning.