This post has been updated and republished with new insights on cost of living and money struggles facing Millennials and Gen Z in 2025.
Read the latest version here:
Smart Money 101: How Millennials and Gen Z Can Take Control of Their Money in 2025
Millennials & Gen Z Money Struggles: The Harsh Reality of Expenses in the U.S.
"72% of Americans are experiencing financial difficulties, and 26% have no retirement savings at all." — CNBC, 2024 Survey
"61% of Americans spend their entire paycheck as soon as it hits their account, with no savings left." — Bankrate, 2024 Report
Let’s be honest—making a living today feels like running on a treadmill that’s only getting faster. For Millennials and Gen Z, managing finances isn’t just about being responsible; it’s about surviving. Even with a full-time job, covering rent, food, and basic bills can feel like a high-stakes juggling act. And don’t even get me started on student loans—those feel like a permanent shadow looming over every paycheck. The idea of financial freedom? Sounds more like a fairytale.
Where Does the Money Go? The Breakdown
Average Salary: Around $3,800 per month
Take-Home Pay: About $2,850 after taxes
Rent: Around $1,900 per month
Food Costs: Roughly $700 per month
Healthcare Expenses: Around $120 per month
Before you even have a chance to enjoy payday, that money is gone. Fixed expenses eat up almost everything, leaving little to no breathing room. If an unexpected expense pops up—like a medical bill, a car repair, or even a surprise rent increase—your finances can go into freefall.
Take my electric bill, for example. This winter, I had to decide: freeze in my apartment or turn on the heater and get slammed with a massive bill. I ended up wearing two layers of socks and wrapping myself in a blanket, all to avoid the financial shock of my next utility payment.
Housing Costs: Buying a Home—A Smart Move, If You Can Swing It
"Over the past five years, U.S. home prices have increased by 40%, making housing costs a major contributor to rising living expenses." — The New York Times
A lot of people say homeownership is impossible for Millennials and Gen Z, and sure, with sky-high prices, it feels that way. But I believe that owning, even a small or older home, can actually be a better financial move than renting—if you plan strategically.
Yes, coming up with a down payment is tough, and mortgage rates aren’t exactly friendly right now. But think about it: Rent is a never-ending expense, while owning a home builds equity. Even a fixer-upper in a decent location can be a long-term investment, giving you stability, tax benefits, and the chance to eventually rent it out or sell for profit.
If buying a home isn’t immediately possible, then reducing housing costs should be the top priority. Living with parents while saving for a down payment may not sound glamorous, but it can make a huge difference financially. Another option is sharing an apartment with roommates to cut rent and utilities significantly, allowing you to put more money toward savings. The goal is simple: spend as little as possible on housing while saving as much as possible toward owning.
Renting might seem like the easier choice, but when landlords keep raising prices and you have nothing to show for it after years of payments, it starts to feel like a financial trap. If you can buy—even if it’s a small, older house—you’re at least putting your money into something that can grow in value instead of just disappearing into someone else’s pocket.
Food Costs: Is Eating Healthy a Privilege Now?
I stood in the grocery store the other day, staring at organic blueberries. "Do I buy these or just take a vitamin and call it a day?" That’s where we are—debating whether fresh fruit is worth the cost.
"In 2024, maintaining a healthy diet is becoming increasingly difficult for low-income households, contributing to record-high obesity rates in the U.S." — CDC Report
Healthy food is expensive, while processed junk is cheap and convenient. It’s no surprise that so many people turn to fast food—it’s not just about preference, it’s about affordability.
Owning a Car: A Necessity That’s Draining Wallets
"The average auto loan interest rate in the U.S. has exceeded 8%, making car ownership an increasing financial burden." — Forbes, 2024
In most parts of the U.S., not having a car isn’t an option—it’s a necessity. But keeping one? That’s a whole other struggle. Gas, insurance, maintenance—it all adds up fast. A few weeks ago, I got a repair estimate that made me reconsider whether I actually needed a car… or if I could just embrace the "walking everywhere" lifestyle.
Even Discounts Are Vanishing: The Walmart Effect
Major retailers like Walmart have been cutting back on discount programs meant for low-income customers. That means everyday essentials—groceries, toiletries, and household goods—are getting even pricier.
"The reduction of major discount programs has increased grocery costs by more than 20% for low-income households." — USA Today, 2024
I saw it firsthand. I went to check out my usual grocery haul and noticed my bill was way higher than expected. Turns out, many of the discounts I relied on were no longer available. And judging by the grumbling at the checkout line, I wasn’t the only one who noticed.
Conclusion: Money Isn’t Everything, But Life Without It Is Brutal
Some people like to say, "Just stop spending on unnecessary things!" as if that’s the magic solution. The reality? Most Millennials and Gen Z are already living as frugally as possible. The problem isn’t spending—it’s that there’s simply nothing left to save.
"Living without savings in America is no longer an exception; it has become the norm for many working-class individuals." — The Atlantic, 2024
That doesn’t mean we should give up, though. Tracking expenses, finding small ways to save, and figuring out creative ways to make extra money can help. But most importantly, remember: you’re not alone in this. We’re all in the same boat, trying to navigate this financial mess together.
You’re not the only one struggling—keep pushing forward!
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