Let’s get one thing straight — Millennials aren’t broke because they’re addicted to avocado toast or iced lattes. That tired narrative? Dead. But here’s the twist: while Millennials are technically earning more than their parents did at the same age, many are still struggling to build wealth.
Higher Pay, Higher Costs
Yes, it’s true. Millennials are making more than Gen X or Boomers did when they were in their 20s and 30s — inflation-adjusted and all. But here’s the kicker: the cost of just about everything else has skyrocketed.
Housing? Through the roof
The average Millennial graduates with tens of thousands of dollars in student loans, only to enter a rental market that eats up half their paycheck. Home prices have ballooned far beyond what previous generations dealt with, and those “starter homes” our parents bought in their 20s? They’re now million-dollar listings in many cities.
Debt Is Dragging Them Down
Student debt is a major millennial financial anchor. It delays everything — buying a house, starting a family, saving for retirement. And it’s not just the size of the debt, it’s the psychological weight of it. When your finances start in the red, it’s hard to ever feel like you’re building up. Millennials also came of age during or just after the 2008 financial crisis, and many entered the job market when opportunities were slim and wages were stagnant. Even those who bounced back are still feeling the ripple effects today.
Lifestyle Expectations vs. Reality
There’s also this weird cultural pressure. Millennials grew up being told, “Go to college, get a good job, and you’ll be fine.” They did that — but instead of financial security, many found sky-high rent, gig work with no benefits, and the creeping realization that retirement might be a luxury, not a given. Social media doesn’t help either. It constantly feeds us the illusion that everyone else is winning at life — traveling the world, buying homes, eating $ 28 grain bowls — while we’re budgeting down to the last dollar before payday. That disconnect can make people spend more to feel successful, even if their bank accounts say otherwise.
Saving Is a Luxury
Saving money assumes you have extra money — and for a lot of Millennials, that’s just not the case. Emergency funds, retirement accounts, investments? Great in theory, tough in practice. When you’re juggling rent, groceries, insurance, and debt payments, savings can feel like a nice-to-have instead of a must-do. And let’s not forget: jobs are more volatile now. Pensions are extinct, health insurance is more expensive, and job-hopping (sometimes out of necessity) is the norm. That old-school financial advice — “Work hard, stay loyal, retire comfortably”? Doesn’t exactly apply anymore.
So What Can Be Done?
Millennials aren’t financially doomed, but the system wasn’t exactly built with them in mind. What needs to change? For starters: better wages, affordable housing, meaningful student loan reform, and a stronger social safety net. In the meantime, Millennials are redefining wealth in other ways. They’re prioritizing experiences over things, side hustling their way to flexibility, and advocating for policies that make financial survival a little more realistic. They may be lagging in wealth, but don’t count them out just yet. The hustle is real — and so is the hope for a better financial future.…