There’s already a big enough gap between Baby Boomers and subsequent generations on everything from comedy to eating habits, but adding to that divide is what defines financial success.
different.
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alleges Zoomers have “lost their minds”.
Still, there are good reasons for younger Americans to think it takes half a million dollars to live the good life. So, why is the gap so large, and who is correct about how much money equals success? Here’s what you need to know.
Why do young people think financial success costs so much?
While some Boomers blame social media for Gen Z’s unrealistic estimation of success, the reality is that life has become more expensive — especially during Gen Z’s formative years.
. That was below the median income of $66,000. By 2024, however, an income of $106,500 became necessary to afford a house comfortably. That becomes problematic when the average household income is $81,000.
The cost of living is not limited to housing either. For that, let’s look at the trappings of a middle-class family with a house, two cars and two kids:
middle-class, no-frills lifestyle.
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use these 3 ‘real assets’ to protect your wealth today
Do you need $600K to be a financial success?
revealed that households in the top quintile had an income of $165,300 in 2023 while the top 5% of households earned $316,100.
estimates at $4,442,050 based on retirement, cars, a wedding, two kids, pets, annual vacations, house and affording your own funeral.
Of course, success is in the eye of the beholder and some people may find they can live comfortably on less. Still, even frugal Americans will find things simply cost more now — so working on increasing income and taking steps to manage money wisely will be important goals for younger generations.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
