Mikhail Goldenkov/Strelka Institute/Flickr
While millennials have benefitted from higher incomes, the increase hasn't kept up with the inflated cost of living.
- Millennials shoulder a different and bigger financial burden than Gen X and baby boomers.
- While incomes have increased for millennials, many significant economic expenses, such as the cost of buying a home and college tuition, have increased at a faster rate.
- The financial struggle millennials face is making them more financially savvy.
It can be easy to gripe about millennials, but the truth is that in some ways millennials face a harder life than their parents did - largely because they're confronted with different financial struggles and increasing expenses.
While millennials have benefited from a 67% rise in wages since 1970, this increase hasn't kept up with inflating living costs - rent, home prices, and college tuition have all increased faster than incomes in the US, reveals research conducted by Student Loan Hero.
However, not all costs have soared.
While the cost of some consumer goods has risen, it's mostly remained stable and has even plummeted for some goods, such as computers, televisions, and other electronics.
Surprisingly, gas is also cheaper. One gallon of regular unleaded gas was 60 cents in 1976; adjusted for inflation, it was $2.65 a gallon, reports Student Loan Hero. In 2016, it was just $1.96 a gallon.
And, fun fact: a pint of beer in 1976 was $1.12, or $4.94 in today's dollars. Today, it's only $3.99.
While it's nice to save on these everyday purchases, The Atlantic points out that it's the most important parts of the economy that are getting more expensive. Consequently, it creates an even bigger financial burden for millennials to shoulder.
But it may be making millennials more financially savvy.
"Facing a stark set of financial circumstances, millennials started adulthood with less room for financial mistakes than previous generations," writes Student Loan Hero's Shannon Insler. "In response, they are managing their money differently. More millennials are refinancing student loans, delaying a home purchase, and looking for creative ways to earn more money through side hustles."
Here are the most significant ways life is more expensive for millennials.