Why Millennials and Gen Z Need Higher Wages to Thrive

Millennials and Gen Z Face Economic Headwinds: A Generation's Struggle to Thrive The rising cost of living in the US is creating significant financial challenges for younger generations, particularly Millennials and Gen Z. A recent video by Freddie Smith (@fmsmith319) highlights the stark contrast between the income needed to merely survive and the income required to thrive. Smith's analysis focuses on three key areas: housing, student loan debt, and childcare. For young adults (18-25) without debt or children, Smith suggests a salary of $50,000-$60,000 might allow for a comfortable life, albeit possibly requiring a roommate. However, for couples (25-45) with student loans and a mortgage, the required income jumps significantly to $120,000-$150,000. Adding two young children to the equation further increases the necessary income to $150,000-$200,000. "How did we allow our economy to get to the point that getting a higher education, buying a house, and having children is now a privilege and a luxury?" Smith asks. He points to the relative affordability of housing and other expenses for older generations who benefited from lower interest rates and less student debt. Smith concludes by emphasizing the need to address the high costs of housing, student loans, and childcare to allow middle-class families to thrive again. Smith's analysis provides a compelling case for the need for higher wages and policy changes to alleviate the financial pressures on younger generations.