(C) Common Dreams
This story was originally published by Common Dreams and is unaltered.
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Why Gen Z are right to be worried about money [1]
["Brian O'Connor"]
Date: 2022-10-13
In 2021, Lauren moved from Birmingham, UK, to London to advance her early career in healthcare. Before relocating, Lauren, 25, was working for the NHS as a theatre support worker, a position paying £20,000 ($22,380). Her new London-based job bumped her salary to £38,000. But even with the increase in pay, Lauren still has trouble balancing her finances.
As the cost of living and inflation skyrocket in the UK, Lauren says she’s still unable to put away money – or is even interested in trying to save – and often goes overdrawn on her bank account for basic purchases. “I was basically on minimum wage. Now, I’m on a pretty decent wage, especially for my age, but I’m always on overdraft,” says Lauren. Her pay may be “decent”, but it’s not sufficient to for London – and not because Lauren is spending frivolously. “For the past year I’ve been in London, by the time I get to mid-month, I’m using my overdraft, and I’m quite comfortable with that now.”
Lauren envisages buying a home as she gets older, but is less than clear on how – or if – she’ll be able to get there. Her financial situation has kept her from planning for the long-term. “I don’t massively think about too many years into the future ... I’ll just keep going to work, and maybe I’ll buy a house at some point somewhere, and that’s about the limit of what I kind of get myself into.”
The story is largely the same for young people in other countries also feeling the effects of the rising cost of living. Maddie, a 25-year-old based in Pennsylvania, US, works as a wellness coordinator at a senior-living home. Despite having a degree in exercise science, her pay cheque isn’t going far enough.
“I only get paid $17 an hour, and my max hours are 35 per week. My rent is $850 a month. Plus my car, my internet, everything you need to live. It’s like I’m barely scraping by lately,” says Maddie. She’s considered working a second gig-economy job to supplement her wages, but the price of gas near her is high enough to make her wonder if it’s worth it. “It feels like there’s no end in sight, and like it’s never going to get any better.”
Across the world, many Gen Zers, like Lauren and Maddie, are in similar financially insecure positions, report feeling the squeeze from the current economic instability. Data from Deloitte’s 2022 global Gen Z and Millennial Survey shows that a third of Gen Z respondents worry about the cost of living above all other concerns; 45% live pay-cheque-to-pay-cheque, and just more than a quarter doubt they’ll retire comfortably.
Although the effects of an unstable economy impact everyone, Gen Z – those born roughly between 1997 and 2012 – are particularly worried about money. As they are just establishing themselves, their finances are taking a hit in the short term, which could trickle down to how they are – or aren’t – able to forge their paths and plan their futures. And unfortunately, say experts, they are right to be concerned.
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[1] Url:
https://www.bbc.com/worklife/article/20221013-why-gen-z-are-right-to-be-worried-about-money
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