Know the Financial Disparity of Baby Boomers vs. Millennials
Baby Boomers and Millennials have a different taste when it comes to lifestyle preferences, attitude, disposition and even social and political inclinations. Perhaps, when a Baby Boomer should see a Millennial these days, it would confirm the idea that times have really changed.
In this post, you will be able to know the major differences of these two generations especially when it comes to finances – the area where the difference apparently lies.
Why is finance the identified major difference of the two generations?
The identified area is finance since recent surveys show that both Millennials and Baby Boomers differ on their capability in planning their future. The former are struggling on areas like having their own house, marrying and other family matters such as having kids. The before-mentioned situations were not a concern at all when Baby Boomers are at the same age as the Millennials today.
Why are Millennials considered to move at a slower pace compared to their parents’ generation?
It was learned that going back in history, Baby boomers were considered lucky since they were born at nearly 20 years after the Great Depression. Government assistance programs were in placed to help the people living that time and not to forget a thriving economy and newly established government back then.
In today’s circumstances, it was found out that Millennials are making money which is actually around 20 percent less than the earnings of the Baby Boomers back in their time as they entered the workforce. Therefore, the reason for the major difference lies in this view, which results to preventing the younger generations to own homes and cars and having fewer savings for their future.
Also, the cost of living now has increased significantly and it turns out that Millennials fail to independently support themselves. College costs today are also another factor that hampers the growth of Millennials. With the fusion of higher college costs and lower salary pay, it is no wonder that the financial gap of these two generations has increased a lot.
What is the possible solution to fill the gap between the two generations?
Recovery from recession is not anymore part of the solution since society is seen to have recuperated from such condition. Studies reveal that the answer might be lowering costs of college education to alleviate or if not, lower, the amount of student debts after. When this happens, the low salaries being received by the younger generation would increase in value and can be allotted for their future savings and purchase of properties (homes, cars, etc.).
However, financial stability does not solely depend on whatever generation you belong into. Financial stability can be achieved by anyone – be from the older or younger generation if the following are kept into mind – creating a budget, setting your savings goals, asking for professional help, and looking forward to retirement.
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