Here's How Much More Gen Z Has To Spend Than Boomers
According to a study from BC Game, Gen Z has to spend almost 5x as much as boomers to purchase the same homes, requiring almost 2,700 hours of additional work to buy the same property at the same age.
The study found that many major expenses have become much more expensive for Gen Z than for boomers. A typical home in 1985 would’ve cost about five years of work at the median wage at the time and it now costs Gen Z about 6.3 years of full-time work.
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MoneyLion reviewed the data and spoke with experts to explore how much more expensive life has become and to share ideas on how the younger generation could overcome this.
How Much More Expensive Is Life for Gen Z Than Boomers?
The study reviewed the five major areas where life has become more expensive and here’s the breakdown.
1. A Home
Median price in 1985: $82,800
Median price in 2025: $403,200
How many extra hours of work are needed to make the same purchase for Gen Z: 2,656
2. Annual Education Expenses
Median price in 1985: $5,556
Median price in 2025: $39,307
How many extra hours of work are needed to make the same purchase for Gen Z: 573
3. A Used Car
Median price in 1985: $2,656
Median price in 2025: $26,918
How many extra hours of work are needed to make the same purchase for Gen Z: 536
4. Annual Childcare
Median price in 1985: $1,020
Median price in 2025: $17,000
How many extra hours of work are needed to make the same purchase for Gen Z: 421
5. A Wedding
Median price in 1985: $7,800
Median price in 2025: $36,000
How many extra hours of work are needed to make the same purchase for Gen Z: 186
What Can Gen Z Do?
Here are some practical measures that Gen Z can take.
Remember That You’re Not Doomed
“It’s important for Gen Z as a whole to understand that, while they may hear just how unfair and inequitable their economic situations are, they aren’t financially doomed,” said Zack Bernsdorf, managing member of Aspire Capital Management.
While you can’t deny that the cost of attending has increased disproportionately and many traditional milestones people used to hit in their 20s are now occurring in their 30s, the good news is that new opportunities have emerged and you’re not doomed.
Find Investments Outside of Real Estate
“Housing and higher education are seemingly consuming a substantial portion of young adults' income, indicating that Gen Z may possibly need to consider an alternate approach to financial milestones differently than the generations before them,” explained Brianna Rodgers, director of investor education at Madison Trust Company. If you’re looking to build wealth, you can find investments outside real estate, like index funds or building your dream career instead of only trying to buy a home.
Figure Out What Steps You Can Take To Improve Your Situation
While the experts acknowledged that Gen Z has legitimate reasons to be frustrated with the hand they were dealt, it doesn’t help to stay frustrated when you could be taking action. Since the price of a used car has skyrocketed by 162% in labor hours, you could consider moving to a community where you can rely on public transportation so you’re not stuck spending almost $27,000 on a used vehicle.
Take Advantage of Resources Available
Rodgers stressed that Gen Z is starting their financial journeys with more educational resources at their fingertips than ever. Bernsdorf believes that an upcoming generation has never had more opportunities and access to seemingly limitless information.
Change What Financial Progress Looks Like
It may be more difficult for Gen Z to own a home or reach certain traditional financial milestones at the same age as previous generations, but they don’t have to follow the same path. For example, instead of buying a home in their 20s, one can aim to create the lifestyle of their dreams where they’re able to travel year-round or you could have an intimate wedding instead of blowing a small fortune on a lavish ceremony since the cost has gone up from $8,000 to around $36,000.
“Focusing on sustainable financial habits and achievable goals may be more practical than trying to replicate a timeline that was designed for generations living under different economic conditions,” Rodgers added.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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