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The fleecing affects millennials in that they cannot save and invest their income. Once they've paid their health care and education [1] payments, they have not

The fleecing affects millennials in that they cannot save and invest their income. Once they've paid their health care and education [1] payments, they have nothing left to save. Per capita, in 2017 dollars, 1970 Americans spent $1,797 on health care. In 2017, $10,739 [0]. In return on that $9,000 annual investment: Life expectancy rose from 74.7 to 78.6, adding 3.9 years. In 1993, the annual cost for tuition & fees to attending a UC as an in-state was $5,000. Today, it's $15,000 [2]. That's a 3x increase during a period when inflation was 1.7x. A Gen Y-er would have paid $20,000 in tuition for a 4-year degree. A millenial, $60,000. That $40,000 is money that could otherwise have been saved. Since those costs were lower as a percentage of income for boomers, Gen X and Gen Y, those prior generations had a better chance to save. Today, they also have highest incomes, and again, can save if that's how they prioritize their finances. Millennials, not so much. For sure, health care and education affects earlier generations, but they were better able to save in 401(k) plans because the portion of their income that went to health and education was substantially less than for millennials. [0] https://www.healthsystemtracker.org/chart-collection/u-s-spending-healthcare-changed-time/#item-total-health-expenditures-have-increased-substantially-over-the-past-several-decades_2017 https://www.healthsystemtracker.org/chart-collection/u-s-spe... [1] https://www.savingforcollege.com/article/growth-in-student-loan-debt-at-graduation-slows-as-borrowers-hit-loan-limits https://www.savingforcollege.com/article/growth-in-student-l... [2] https://www.kqed.org/news/70585/csu-and-uc-tuition-hikes-over-time https://www.kqed.org/news/70585/csu-and-uc-tuition-hikes-ove...

diogenescynic 8y ago
Housing and childcare are also outpacing inflation and wages. It’s crazy how much more things cost as a percentage of income than in the ‘90s. We’re going to have an inevitable retirement crisis when most millennials are forced to work until they die since they won’t have anything left to put into savings. 70% of Americans can’t even put together $400 in an emergency. I see things getting even worse unless something significant changes.
- war1025 8y ago
  Part of that is the structure of the economy, like you say. A significant proportion of it, as a millennial myself, is people having a terrible understanding of personal finance. If you spend all your money on things to impress people or because "you deserve them", then you end up with an empty pot.
  - diogenescynic 8y ago
    There have always been people with bad personal finance. The difference is that the necessities that you cannot avoid all cost orders of magnitude more—-healthcare, housing, college, childcare. This means people how a smaller margin for mistakes and even one hospital trip can put them in debt for years/decades or bankruptcy.
    - war1025 8y ago
      The rules have changed and people are still trying to live like their parents did. Healthcare is expensive. If you are on Obamacare, it is subsidized. Housing is expensive if you want to live in a "good" neighborhood. There are a lot of "okay" neighborhoods that people can afford just fine. College is expensive, but it really depends on which university you go to. As much as anything, the college issue is intentional misdirection by the people who are steering parents and kids into those choices. There are very economical options, but the price tags and ramifications of those choices are usually not spelled out very well to the people making those decisions. Edit: Childcare is absolutely expensive, to the point that I really expect having a parent stay at home to swing back around to being more normal. We have three kids and if my wife worked, it would cost more to have them in daycare than she would make while they were there.
      - gdfasfklshg4 8y ago
        One parent not working has massive negative externalities for everyone. For society the labour force shrinks and the economy follows. Your wife's career is effectively over after 5-10 years off for childcare. If you lose your job your family will be in trouble. If you get divorced you will not enjoy the results.
bengillies 8y ago
I think it's worth pointing out here that the terms Gen Y and Millenial both refer to the same generation (see https://en.wikipedia.org/wiki/Millennials https://en.wikipedia.org/wiki/Millennials)
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- echelon 8y ago
  You're correct. None of the parent's argument makes any sense in light of this error. I don't understand why the post is being upvoted--the data is outright wrong! I sense that people may blindly upvote posts reporting figures, especially if they come with sources.
  - hoaw 8y ago
    Generation X and Millennial isn't really a sharp transition. No generation is, but it is even more diffuse this time since there wasn't necessarily one or multiple "big events" at a fixed date. I don't know if parent's argument is correct, but what is being said is essentially early Millennial, ~1985 and late Millennial, ~1995. Huge difference in many e.g. housing markets. Once people born around the actual millennial gets old enough we might start talking about Generation Z instead.
    - TheCoelacanth 8y ago
      Most people born in 1985 had their income affected too much by the Great Recession to really take advantage of the lower housing prices then.
      - hoaw 8y ago
        Could be the case for many people. I think the commonality between generations might even be declining in favor of other divides. It is in some ways assumed that many people are starting at the bottom and mostly share paths based on development. But I am not sure that is the case anymore, if it ever really were.
andrew_ 8y ago
I made the cutoff for Gen-X by a year, but still benefitted from the generally referenced figures in the comment. It's staggering how much more it costs now. My wife is a mere 5 years younger than I and her tuition cost her 3x my own.
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diogenescynic 8y ago

Housing and childcare are also outpacing inflation and wages. It’s crazy how much more things cost as a percentage of income than in the ‘90s. We’re going to have an inevitable retirement crisis when most millennials are forced to work until they die since they won’t have anything left to put into savings. 70% of Americans can’t even put together $400 in an emergency. I see things getting even worse unless something significant changes.

war1025 8y ago
Part of that is the structure of the economy, like you say. A significant proportion of it, as a millennial myself, is people having a terrible understanding of personal finance. If you spend all your money on things to impress people or because "you deserve them", then you end up with an empty pot.
- diogenescynic 8y ago
  There have always been people with bad personal finance. The difference is that the necessities that you cannot avoid all cost orders of magnitude more—-healthcare, housing, college, childcare. This means people how a smaller margin for mistakes and even one hospital trip can put them in debt for years/decades or bankruptcy.
  - war1025 8y ago
    The rules have changed and people are still trying to live like their parents did. Healthcare is expensive. If you are on Obamacare, it is subsidized. Housing is expensive if you want to live in a "good" neighborhood. There are a lot of "okay" neighborhoods that people can afford just fine. College is expensive, but it really depends on which university you go to. As much as anything, the college issue is intentional misdirection by the people who are steering parents and kids into those choices. There are very economical options, but the price tags and ramifications of those choices are usually not spelled out very well to the people making those decisions. Edit: Childcare is absolutely expensive, to the point that I really expect having a parent stay at home to swing back around to being more normal. We have three kids and if my wife worked, it would cost more to have them in daycare than she would make while they were there.
    - gdfasfklshg4 8y ago
      One parent not working has massive negative externalities for everyone. For society the labour force shrinks and the economy follows. Your wife's career is effectively over after 5-10 years off for childcare. If you lose your job your family will be in trouble. If you get divorced you will not enjoy the results.

bengillies 8y ago

I think it's worth pointing out here that the terms Gen Y and Millenial both refer to the same generation (see https://en.wikipedia.org/wiki/Millennials https://en.wikipedia.org/wiki/Millennials)

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echelon 8y ago
You're correct. None of the parent's argument makes any sense in light of this error. I don't understand why the post is being upvoted--the data is outright wrong! I sense that people may blindly upvote posts reporting figures, especially if they come with sources.
- hoaw 8y ago
  Generation X and Millennial isn't really a sharp transition. No generation is, but it is even more diffuse this time since there wasn't necessarily one or multiple "big events" at a fixed date. I don't know if parent's argument is correct, but what is being said is essentially early Millennial, ~1985 and late Millennial, ~1995. Huge difference in many e.g. housing markets. Once people born around the actual millennial gets old enough we might start talking about Generation Z instead.
  - TheCoelacanth 8y ago
    Most people born in 1985 had their income affected too much by the Great Recession to really take advantage of the lower housing prices then.
    - hoaw 8y ago
      Could be the case for many people. I think the commonality between generations might even be declining in favor of other divides. It is in some ways assumed that many people are starting at the bottom and mostly share paths based on development. But I am not sure that is the case anymore, if it ever really were.

andrew_ 8y ago

I made the cutoff for Gen-X by a year, but still benefitted from the generally referenced figures in the comment. It's staggering how much more it costs now. My wife is a mere 5 years younger than I and her tuition cost her 3x my own.

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