How Everyday Finances Have Changed Since Your Parents Were Your Age
If you ask money experts around the United States how everyday finances have changed over the past several decades, you’re likely to get a bunch of different answers. It’s also likely most of them will note it’s become much more challenging to pay for anything beyond the basic life essentials.
“The biggest change is that your parents had more margin for error,” said Andrew Lokenauth, founder of the blog Fluent in Finance. “A single income, no debt and employer-funded retirement meant one bad year didn't break everything. Today, around 60% of Americans are living paycheck to paycheck.”
Learn More: 5 Smart Ways To Inflation-Proof Your Finances as 2026 Gets Rocky
Consider This: 9 Subtly Genius Things All Wealthy People Do With Their Money — That You Should Do, Too
Lokenauth added that more people are living that way not because they’re careless or reckless. It's because wages haven't kept pace with housing, healthcare and education costs, he noted.
“The system changed. The advice your parents gave you about money was right for their world. It's not yours anymore," he said.
Here’s a closer look at what experts said are some specific ways everyday finances have changed in the past few decades.
Housing Costs
According to Cody Schuiteboer, president and CEO of Best Interest Financial, the biggest change in the last 30 years is the relationship between housing affordability and income.
“In the last 30 years, the disparity has increased,” he said. “While the average price of a home used to be around three times the average annual salary, it is now five to seven times the average annual salary. While our parents could buy a home on a single income and still have enough to save, most of the young people I meet need two incomes to afford rent.”
With rising tuition costs and stagnant wages, Schuiteboer said many of his clients in their 40s still have student debt, which further impacts their ability to get a mortgage.
“Overall, parents benefited from more affordable housing to income ratios,” added Marguerita Cheng, certified financial planner (CFP), CEO of Blue Ocean Global Wealth. “Parents could also access higher education without crippling student loan debt.”
Subscription Models
Several experts who talked to MoneyLion pointed out the way subscription models have changed over the years is another big example of how everyday finances have shifted in recent decades.
“Almost any service has a subscription, and you must be very careful not to let that overwhelm you or your budget,” said Brandon Gregg, certified financial planner (CFP) and, advisor with BBK Wealth Management. “Take television as an example. You used to have one company you paid and could watch most anything. Streaming plans and models have drastically changed the landscape. I would argue that on average, most people pay significantly more for TV now than before, once they add in every service needed for their desired content.”
Tech Options and Budgeting
“Technological advances have brought vast new ways of banking, budgeting and investing in the digital age,” Gregg noted. “Spreadsheets and paper seem to have become obsolete for maintaining finances over the past 20 to 25 years.”
Other factors such as inflation play a huge role in how finances are handled, he added.
“Up until recently, rates and inflation levels were low and steady,” Gregg said. “Fast forward to today, and costs have skyrocketed. It seems that everything we do these days has a higher expense and requires extra thought during budgeting.”
According to Schuiteboer, technology has made so many things exponentially cheaper, from almost everything digital to forms of communication to ways of investing, now that young people can open brokerage accounts at no cost and with a minimal amount of money.
“The means of creating and building wealth have never been so accessible and affordable," he said.
Youth Sports
For many families across the country, summer means a busy time of camps and athletics.
“When I was growing up, we went to the local rec center and played in city league sports for $30 a month,” noted Melanie Musson, a finance expert with Quote.com. “Now, parents are far more likely to spend a lot of money for travel ball and competition cheer. These costs can easily exceed $1,000 a month. Inflation certainly plays a role, but it's not that much.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.
More From MoneyLion: