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Gen Z couple learns how much money they'd need to earn to buy a house and can't stop laughing

"That is diabolical."

Photo credit: Canva

Gen Z couple learns what they need to make to have Boomer buying power

Buying a home is a big financial commitment. The cost of housing has increased to astronomical levels, so much so that years of saving, planning, and settling for less than you'd like are the only ways to achieve the dream of owning a home. Maybe. But this wasn't always the case. Boomers were once able to afford buying a home on much less income. Maybe not minimum wage, but even minimum wage earners had significantly more buying power then than they do now.

One Gen Z couple did the math on how much minimum wage would need to be in 2025 to have the same buying power, and the figure is staggering. In the late '60s through mid-70s, when many Boomers were purchasing their own homes, minimum wage was just $1.60, before it was raised to $2.10 in 1975.

Gen Z; Boomers; Millennials; housing prices; housing markets; boomers buying power; Gen Z home buying "Celebrating their new home with joy and a smile!"Photo credit: Canva

Nikki and her partner Derek reveal that in order to equal the purchasing power of Boomers, the minimum wage would need to be $66 per hour. The couple is hoping to buy a home in the future, which got their wheels turning on how the current wages compare to the wages Boomers were making. But with a number like that, the only logical thing to do was laugh. It's almost hard to believe that if wages kept up with inflation, minimum wage would be over $50/hour for reasonable—not even fancy—accommodations.

A lot of people joined in on their nervous laughter and shock, with one person saying, "I don’t even make $66 an hour with a master's degree in a healthcare field."

@iarbosss MIND YOU the federal minimum wage is currently $7.25/hour. #boomers #genz #minimumwage #economy ♬ original sound - Nikki

Another writes, "That minimum wage converted to an annual salary is $137k btw lmao. Boomers had it so easy."

"My Boomer father said to me (a millennial) the other day 'did you know your son's generation will be the first that will be worse off than their parents?' I said 'no, Dad. That's me. That's MY generation' He was SO close...." someone else shares.

"My grandpa worked 60 hour weeks for ONE SUMMER and bought a whole house with it," another person exclaims.

Gen Z; Boomers; Millennials; housing prices; housing markets; boomers buying power; Gen Z home buying Family moving day: New beginnings and smiles.Photo credit: Canva

This financial discrepancy is something Boomers struggle to admit. According to Detroit Legal News, "The majority of baby boomers—those born between 1946 and 1964—believe younger generations simply aren’t doing everything they can to afford a home." They added, "In the Clever study, baby boomers cited several reasons they believe younger generations can’t afford homes, but most blame irresponsible spending. About 71% said young adults spend more on frivolous things like travel and luxury items rather than saving for a down payment."

Boomers seem to have a skewed view of what's happening with younger generations and their spending. A 2023 Bank of America report shows that while Boomers increased their spending on vacations and other luxuries, younger generations pulled back due to student loans and housing prices.

Gen Z; Boomers; Millennials; housing prices; housing markets; boomers buying power; Gen Z home buying Couple smiles in front of their new home.Photo credit: Canva

"Millennials and Gen X hold about 87% of the country’s student loan debt, which tops $1.63 trillion. In addition, 72% of those aged 44 and younger live in rental properties and saw their rent increase for the fifth straight month in August," Detroit Legal News reveals.

Actor Chris Marrone shares his own video on Instagram, reaching the same conclusion as Nikki and Derek. He explains to BuzzFeed that the purpose wasn't to suggest Boomers could buy a home on minimum wage, but to show the stagnant wages.

"Wages have decoupled from cost of living, housing prices, and broader economic growth over the last few decades. The original purpose of the minimum wage was to ensure that even low-wage workers could participate meaningfully in the economy. Not just survive, but live with dignity," Marrone tells the outlet.

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6 states where the minimum wage and cost of living offer the best bang for your buck

The highest state minimum wage in the U.S. is now $16.28 per hour, but some cities are even higher.

Map via Wikimedia Commons (multiple creators)

State minimum wages range from $7.25/hr to $17.00/hr in 2024.

Public discourse about minimum wage and living wages has been ongoing for years, with people debating whether the government should mandate a minimum hourly pay for workers. President Franklin D. Roosevelt signed the first federal minimum wage law in 1938, setting the lowest wage a worker could be paid at 25 cents per hour. Nearly a century later, the federal minimum wage is $7.25/hr, holding steady since 2009, with people lobbying to raise it to at least $15/hr for over a decade.

However, in addition to federal law, each state has its own laws, a handful of which establish a state minimum wage higher than $15, a handful of which don't have a set minimum wage at all and everything in between. Cost of living has also been a hot topic as inflation has squeezed everyone's wallets and certain cities and states have become utterly unaffordable, especially for people in low-wage jobs or who who are just starting out in their careers. So how do minimum wage and cost of living correlate state-by-state? Are there any sweet spots with a high(er) minimum wage and low(er) cost of living?

While there’s no perfect storm of super low cost of living and super high minimum wage—for instance, Washington, D.C. has the highest state minimum wage at $17/hr, but housing costs 140% more than the national average—there are some states where the ratio is far more favorable than others. According to Insider Monkey, here are the top six states where you can get the most bang for your minimum wage buck.

6. New Mexico

The Land of Enchantment offers a relatively decent living for its $12/hr minimum wage thanks to the state's below average cost of living. According to Rent Cafe, housing in New Mexico is 8% lower than the national average, monthly utilities are 9% lower, food is 4% lower, transportation is 3% lower and healthcare, goods and services are 2% lower.

According to Smart Asset, Albuquerque, New Mexico ranks as No. 10 in U.S. cities where minimum wage goes the furthest.

5. New Jersey

The Garden State's relatively higher-than-average cost of living is counteracted by relatively solid minimum wage of $14.13/hr. Most of the cost of living in New Jersey is wrapped up in housing, which is 30% higher than the national average, according to Rent Cafe, and utilities, which are 12% higher. Goods and services are 5% higher, but healthcare is 2% lower than the national average. Food and transportation are 1% and 2% higher, respectively.

4. Connecticut

With both a cost of living and minimum wage slightly higher than New Jersey, Connecticut rolls in at No. 4 with a $15/hr minimum wage. Where the Constitution State hits hardest is in utilities, which Rent Cafe places at 30% higher than the national average, and housing, which is 24% higher. Healthcare and goods and services are both 9% higher, while transportation and food are just 1% and 2% above average.

3. Missouri

The Show-Me State says, "Show me the money!" with its somewhat respectable $12/hr minimum wage, which goes pretty far with its relatively low cost of living. Housing is the biggest cost benefit Missouri offers at 18% lower than the national average. But utilities, food, healthcare, and goods and services are also all below average, with only transportation landing right at the national average.

Additionally, St. Louis clocked in at No. 5 for a minimum wage real-world value of $13.68 when adjusting for the city's lower-than-average cost of living.

2. Washington

With the highest state minimum wage in the nation (unless you count Washington, D.C.), Washington's $16.48/hr puts it in second place when accounting for cost of living. Make no mistake, Washington isn't cheap overall, with a cost of living 15% higher than the national average. Housing and transportation hit hard at 29% and 27% higher than the national average, respectively. Healthcare is pricey as well at 20% higher than average. Food costs 12% more, but utilities clock in at 7% less than the national average.

Two cities in Washington hit the top 15 for highest real minimum wage value, though, with Seattle at No. 13 and Spokane at No. 2.

map of united states with these states highlighted in green: Washington, New Mexico, Missouri, Illinois, New Jersey and Connecticut

These six states offer the best minimum wage to cost of living ratio.

Created with mapchart.net

1. Illinois

If you want the best bang for your minimum wage buck, head to the Prairie State with its $13/hr minimum wage and 8% lower than average cost of living. Housing in Illinois is 22% lower than average and utilities are 10% lower. The only expense that comes in higher than average for Illinois is transportation at 3% above average, which isn't enough to keep it out of the top spot.

However, there are some minimum wage sweet spots in certain U.S. cities that aren't reflected in these state rankings. According to Smart Asset, Denver, CO, is the city where minimum wage goes the farthest in the nation. Colorado comes in at a respectable 7th place in state minimum-wage-to-cost-of-living ratio, but Denver has its own mandatory minimum wage of $18.29/hr.

A citywide minimum wage is part of what puts Seattle at the No. 13 spot on that same list. Seattle is one of the most expensive cities in the U.S., but its $19.97 minimum wage for most workers changes the ratio in its favor.

Other cities in the top 10 include Buffalo, NY; Minneapolis, MN; Tucson, AZ; St. Paul, MN; Phoenix, AZ and Stockton, CA.

The minimum wage conversation may vary widely across the U.S., with different costs of living and different state laws on the books. But if you're looking to move someplace where your wage will go the furthest, these six states will likely be your best bet to check out first.


This article originally appeared last year.

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Australians have some wonderfully Aussie thoughts about the American minimum wage

Photo by Melissa Walker Horn on Unsplash, @BrettKlein/Twitter

Australia's minimum wage is an example for us all.

How great is Australia? A relaxed cultural vibe that is progressive, inclusive and seems like a literal day at the beach. They even give us some of our favorite Marvel superhero film actors. Must be tough to make a buck there though, right? Actually, they've got a significant edge on us there as well. Take a look at Australian's minimum wage and how much further it goes for the average worker than for your typical hard-working American.

Australian unions are currently pushing for a 5% increase to the minimum wage to counter inflation. Australia's minimum wage is 20.33 Australian dollars per hour, which is the equivalent of $15.23 (as of the writing of this article).

Meanwhile, Americans are still sitting on the same federal minimum wage we've had since 2009—a whopping $7.25 an hour—while we are also dealing with inflation.

Minimum wage by U.S. state varies—a lot—from $7.25 to $15.90. And most states have different minimum wages for tipped jobs such as wait staff in a restaurant, on the assumption that you'll earn enough tips to make up the base wage. Though employers can choose to pay above the minimum, they aren't required to. And the minimum tipped wage in 17 states is $2.13 per hour.

Let me repeat that. In 17 states in the United States of America in 2022, the tipped minimum wage is $2.13 per hour.

That's bonkers. And the disparity between states is, frankly, shocking. If you live in Washington state, for example, you're guaranteed to make at least $14.49 per hour in any job, whether you get tips or not. If you live in Idaho—literally the state next door—you're guaranteed $7.25 per hour for standard labor and just $3.35 per hour for tipped employment. So the base pay for a waiter on one side of an imaginary line is four times more than on the other. So weird.

Anyway, back to Australia. They're a little worried about us, and it's not hard to see why.

from antiwork

A 16-year-old Australian on Reddit was shocked to learn that the federal minimum wage here is $7.25 per hour. "There is no way someone can live off that wage even if they're working full time." Yep, nope.

Another Aussie responded to a sign for Buc-ee's, a chain of country stores and travel centers in the southern United States, announcing wages for full-time work ranging from $15 to $17 per hour for associates to $22 to $32 per hour for department leads. To American eyes, in most states, this sign is a unicorn of awesome hourly starting wages for "unskilled" labor.

To Australian eyes, these are the lowest wages they ever see in their country.

Despite Australia having a minimum wage of AU$20.33 ($15.23), most workers actually make more than that. In addition to its minimum wage, Australia has a system under its Fair Work Act called Modern Awards, which establishes base pay and benefits for workers in a variety of industries, from fast food to health and beauty to caregiving.

One caveat: Workers under age 21 can make less than minimum wage in Australia, so teenagers may make significantly lower wages than AU$20.33 per hour (though still not as low as $7.25 per hour). However, the Modern Awards system dictates higher than minimum wage earnings for most workers—even for basic fast-food jobs—for people over 21. For example, the starting pay for a Level 1 fast-food worker over age 21 is AU$22.33 ($16.72) per hour during the week, AU$27.91 ($20.90) per hour on Saturdays and Sundays, and AU$50.24 ($37.63) per hour on holidays.

Not too shabby.

Another Australian pointed out that the amount some Americans pay for a college education is bonkers, in addition to our low minimum wage.

Australians graduate with less student loan debt than Americans, on average, and their student loan payments only start over a certain income threshold (and are linked to the amount you make).

Oh and let's not forget that Australians don't have to pay for healthcare out of their own pocket, either. And they have paid maternity leave of up to 18 weeks at the national minimum wage. And they have a minimum of four weeks of paid vacation time for all employees, on top of paid national hoildays.

But don't Australians pay a much higher tax rate than Americans for these benefits, you may ask? No, not really. According to the Tax Foundation, a single worker earning an average wage in the U.S. pays an average tax rate of 28.3% while in Australia they pay an average of 28.4%—so basically the same tax burden, at least for single people with no kids.

It's not that Australia is perfect, of course. But when it comes to paying people reasonable wages and guaranteeing paid time off and providing healthcare to all, they're light years ahead of the U.S.

Rather than seeing it as a woe-is-us comparison, however, let's look at it as "Hey, look at what's possible!" We, too, could have wages people can actually live on and not go into bankruptcy over medical bills and ensure that everyone gets paid time off so they can actually relax a little. It doesn't have to be some distant pipe dream; it's a matter of collective and political will. If Australia can do it, there's really no good reason we can't, too.

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Mom shares why she's 'really proud' of her 19-year-old daughter who wouldn't take $9 an hour

via Anna Shvets/Pexels

A teen watches as an employer looks at her resume.

The COVID-19 pandemic has caused a massive shake-up in the American labor market and for many, the change has been positive. Many Americans quit their job this year because they feel optimistic that after enduring some of the harshest working conditions during the pandemic, they can find better work that pays more elsewhere.

This sea change in the labor market comes on the heels of the nation’s collective dedication to the idea that people should be paid a living wage and it should be somewhere around $15 an hour.

The change in attitudes toward work has many younger people feeling empowered to ask for better compensation and treatment in their young careers. This was perfectly evidenced by a mother on Reddit who praised her 19-year-old daughter for refusing to accept $9 an hour.

In the post's title, the mother wrote: "I’m really proud of my 19 year old daughter. She was offered $9/hr at a second interview today and declined telling them she couldn’t feed herself with that.”

"She told me she was polite about it, which she always is, but I was still a bit taken back initially that she would say this directly to the shop owner. It was somewhere she really wanted to work and has been going to since she was a kid," the mom continued.

The employer admitted that they weren’t paying “a living wage” and apologized for not being able to offer more. The daughter also had some leverage because she was making $10.50 an hour at another job.

The 41-year-old mother was impressed because when she was in her teens, younger workers were forced to accept any deal they were offered and had little leverage or confidence to ask for anything more than substandard.

"I'm 41 and when I was her age I would've taken any s*** pay they offered me just for the experience and so I could work at my favorite shop. And I would've been grateful for the opportunity for them to take full advantage of me," she explained. "I would've never had the confidence to stand up to an older adult in a position of power like that,” she added. “I told her I was so proud of her for knowing her worth and not accepting anything less."

Reddit user jakeyeah111 had the best response to the post. "Yup. The amount of older people who are mad that the younger generation isn't letting themselves get stepped all over anymore is... off-putting,” they wrote.

The mother’s post mirrors trends that people are seeing across income levels in America. The average reservation wage, or the minimum annual wage consumers said they needed before they would even consider accepting a job offer, has risen more than $14,000 over the past six years to $68,954.

On ZipRecruiter, the number of jobs offering $15 an hour has more than doubled over the past two years.

The changes in the labor market and public opinion are a wonderful development for the U.S. economy. Instead of cultivating a market where people are forced to accept less than they believe they're worth, employers and employees are working to create mutually beneficial relationships that uplift everyone.

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