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Millennial shuts down judgy boomers by comparing cost of 'luxuries' in 1980 vs 2025

The data backs him up.

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Millennial man says "luxuries" aren't the reason young people can't afford to live.

Millennials constantly lament the high cost of living and the fact that so-called "American dream" is out of reach for many of them. Housing prices have skyrocketed, as has the cost of a college education. Eating out has gotten drastically more expensive, and making food at home with fresh groceries is hardly any cheaper. It's just so hard, they say, to get a foothold in the modern economy. Boomers, who grew up in the 50s, 60s, and 70s, however, aren't wasting any sympathy tears.

One of the big talking points in the great American millennials versus baby boomers debate is that, yes, things are more expensive; but has the younger generation has knee-capped itself by its lavish spending habits that have prevented them from owning homes? If millennials stopped buying $14 avocado toast and $1,000 iPhones, would they be able to save enough for a down payment on a modest house?

Freddie Smith, 36, of Orlando, Florida, recently went viral on TikTok for a video in which he challenged the boomer argument with statistics from the Bureau of Labor, Federal Reserve, and the U.S. Census Bureau.

Smith believes that the older generations misunderstand millennial finances because their concept of luxury is based on 1980s economics. That's when most boomers were coming of age and buying their own family homes, and their ideas of saving up for a down payment and affording a monthly mortgage are heavily outdated.

Smith says that for baby boomers, essentials such as rent and child care were much more affordable, but items considered luxuries (TVs, CD players, computers) were much more expensive.

How is the economy different for millennials than it was for baby boomers?

"The main shift is that core essentials—housing, education, healthcare, and even food—have become more expensive," Smith said. "Housing and rent, for instance, now outpace wage growth, making homeownership feel unattainable for many. The cost of childcare has also skyrocketed, and food prices have increased.”

The home price to income ratio is currently at an all-time high. The Joint Center for Housing Studies of Harvard University writes, "In 2022, the median sale price for a single-family home in the US was 5.6 times higher than the median household income, higher than at any point on record dating back to the early 1970s." That ratio was closer to 2.5 in 1980.

Even transportation has skyrocketed. Buying a new car now costs about as much as the median yearly salary, with entry-level vehicles disappearing rapidly and being replaced with high-tech, fuel-efficient offerings.

"As a result, I think older generations have a different perspective on luxury versus necessity,” Smith continued. “They grew up in a time when hard work typically led to financial stability, whereas today, even with hard work, many people struggle with the high costs of housing, rent and medical expenses. Basic survival used to be far more affordable, allowing people more financial room to build a stable life."

  - YouTube  www.youtube.com  

Smith’s numbers don’t lie. For a person in the '80s to own three TVs, a CD player, a cellphone, a microwave, and a computer, it would cost them 3.5 years of rent or a 20% downpayment on the average home. So, it was irresponsible for someone in that period to purchase all of what was known then as luxuries.

However, for millennials, these "fancy toys" are a lot more affordable compared to the big ticket items of housing, childcare, and college education. Skimping out on them won't make a meaningful difference in the attempt to save up the massive amount of cash required for a down payment on a modern home. To wit:

"But if you skip that daily $6 Starbucks drink, you’ll have enough for the downpayment in 29.22 years," Yokahana joked in the comments.

"I hate that housing and transportation have become luxuries," Molly added.

"Imagine spending 3x your rent on a microwave," Donutdisaster wrote.

Older people may see millennials with multiple TVs in their home, along with iPhones and tablets, and think that money could be better saved up in service of the "American dream." But the truth is that those savings won't really help, and worse, they'll make life pretty unenjoyable in the meantime!


Why are luxury goods more affordable now than they were in the '80s?

The price of manufactured goods has steadily fallen over the last few decades due to technological improvements and trade policies that have allowed the U.S. to import goods from places where labor costs are cheaper.

"International, global competition lowers prices directly from lower-cost imported goods, and indirectly by forcing U.S. manufacturers to behave more competitively, with lower prices, higher quality, better service, et cetera," Sociologist Joseph Cohen of Queens University said, according to Providence Journal.

Even as recently as the early 2000s, a high-quality TV was likely to cost over $1,000. Nowadays you can get an equivalent, or better, television set for just a few hundred bucks.

Why are housing prices so high?

Housing prices in the US have soared due to the low inventory caused by the Great Recession, mortgage rates, and zoning laws that make building more challenging.

 Rents have increased considerably since the pandemic due to low inventory, inflation, barriers to home ownership, and the fact that more people want to live alone than with a roommate or romantic partner.

Smith’s breakdown of the economic changes over the past two generations makes a strong case for the idea that millennial financial troubles have more to do with systemic problems than spending habits. The boomers got a bad deal regarding luxury items, and the millennials with necessities. Wouldn’t living in a world where both were affordable in the same era be great?

This article originally appeared in February. It has been updated.

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In just 9 seconds, Amy Poehler perfectly describes why each generation sees money differently

These four generations' experiences gave them a totally different perspective. But who's right?

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An older man enjoys a fancy cigar. A younger man smokes a cigarette.

Comedian and writer Amy Poehler is the gift that keeps on giving. On her popular podcast Good Hang with Amy Poehler, she welcomes guests and has brilliantly funny and often insightful conversations. (Don't sleep on the episode when she had her dear friend Paul Rudd on. It's magical.)

On a recent show with Parks and Recreation creator Mike Schur, there's a clip of her breaking down how each generation relates to money. Straight to the point, she says, "The Boomers are all about money. Gen X is like IS it all about money? Millennials are like where IS the money? And Gen-Z is like what is money?" (She adds, "That's my bad stand-up about it.")

  This is Impact YouTube page, Amy Poehler  www.youtube.com  

Hacky comedy or not, she's not wrong. Just under this short YouTube clip, there are over 3,000 comments, mostly from people who back up the claim. One notes, "Gen Z is paying more money for a car now than Boomers paid for their home."

One commenter jokingly (but also maybe accurately) adds, "Gen Alpha: WHY is money?"

On his TikTok page, Freddie Smith (@fmsmith319) references the clip and after acknowledging that Amy "totally nails it," he breaks it down even further in terms of how each generation's economy helped shape them. He states, "This is a true representation about how money has been declining over the past 40 or 50 years. The Boomers had such a big economic boom, so it was easier for them to accumulate money. 80 trillion dollars, the Boomer generation has–so of course, it's all about the money."

@fmsmith319

Boomers, Millennials and Gen Z take on money | @Good Hang with Amy Poehler


He moves on to the millennials. When you think about them, he says, "Of course, where is the money? It's because we were handed a road map at like 13 years old of exactly the steps we needed to take and someone pointed and said 'see that treasure chest? It's gonna be full of gold! Just follow the plan.' Well we followed the plan and here we are twenty years later. We open up the treasure chest and there's two f-ing coins in it."

"And then Gen Z-ers? What is money? They're going to work and they're getting paid direct deposit on Fridays and as soon as that money hits the account, it just goes automatically to their bills. They don't actually 'touch' money." He goes on to explain it would be no different for an employer to just pay in housing and/or food, because they don't actually see the money. "This is such a true representation of what we're all screaming about right now. What is going ON?"

(I'd just like to point out, as a Gen X-er, that he totally skipped over us—but we're used to it.)

 Tom Cruise, Jerry Maguire, money, movies, gif Tom Cruise asks that you show him the money.   Giphy Show Me the Money GIF 

The comments here intensely agree. One notes, ""I mean millennials also lived in the world of UNPAID internships!! Boomers made us work for free… and we paid colleges for this experience."

Over on Reddit, many people joined up to discuss this take, with which nearly all agree. Though, again, we get a Gen Alpha joke, much needed in lightening the mood, "Gen Alpha is like 'Rawarr! Me no read! Must smash'."

Someone also ingeniously links to an old SNL sketch with, you guessed it, Amy Poehler, alongside Steve Martin and Chris Parnell. The gist of it? DON'T BUY STUFF.

  Amy Poehler, Steve Martin, Chris Parnell  www.youtube.com, NBC Universal  

A commenter here writes, "I show this in my financial literacy 30 class every semester when I introduce credit. It's such a simple concept, yet so hard for many to grasp. Teach them young and hopefully they'll make great financial choices when credit becomes available to them."

Another points out, "It's sad how many people need to hear this."

To be fair, it would seem some generations don't even have the option to buy or not to buy because all their money goes to rent.

 

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Boomer and Gen X Americans share the money advice that got them through tough economic times

"Perseverance. One of our best traits."

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Boomers and Gen Xers share financial advice for making it through hard economic times.

Surviving hard economic times builds grit and character, and almost every generation has had to deal with difficult financial challenges. Two generations who are especially equipped to offer their wisdom about weathering through tough times, though, are Boomers and Gen Xers.

In a Reddit forum, member @Fit_Trifle2469 posed the question to followers: "Dear Boomers and Gen X: What got you through tough economic times?"

They followed up with more explanation behind the prompt. "Millennial here (33). I wanted to reach out and hear from those of you who’ve lived through major recessions, such as 2000 and 2008," they wrote. "I'm really interested in your perspective — not just for myself, but for others who might stumble across this thread someday when times get rough again."

Boomers and Gen Xers who have been through difficult financial times and hardships opened up to share their wisdom. These are some of their best pieces of advice for tough economic times.

 penny pinch, save, money advice, saving, count money Money Management GIF by Robert E Blackmon  Giphy  

"When I graduated HS in 1981, unemployment was 10 percent and mortgages were 17 percent. Inflation was 8 percent. I had no job and couldn't find one. That's when my step-father threw me out. I was going to be homeless so I joined the Army. It was one day at a time, one foot in front of the other and I marched on. What else can you do? Eventually things got better. Much, much better." —@Distwalker

"Perseverance. One of our best traits." —@SharonWit

"Downsize everything ......phone...phone plan.... car.... cook food at home .....pack a lunch for work....debt consolidation and make that one payment........no credit card usage..... entertainment was checking out free library books and reading them......thrift store shopping......trade/barter services and items on craigslist." —@Express-Rutabega-105

 meal prep, prep meals, food prep, cheap meals, food savings GIF by NRDC  Giphy  

"Don’t waste any food - plan meals accordingly so as not to waste anything, buy discounted meat, bread, fruit and veg. All meat gets cut up for meals so it can last longer - nobody gets a steak for themselves, one cheap, marinated steak cut into strips and added to rice and veggies for 3-4 meals. Eggs (they’re still cheap where I live) and a 50lb bag of potatoes are your new best friends unless you like pasta then you are much easier to feed. Get condiment packets from restaurants -my partner made an order and forgot to grab ketchup etc. I don’t miss being poor but I can still feed the fam relatively well on a very, very tight budget." —@drivingthelittles

"Living as cheap as possible out of sheer spite."—@OldLadyMorgendorffer

"I'll be adding to this list with edits as my brain dump continues:

  1. Everyone will lie to your face brazenly about layoffs - don't believe anyone when they say things are fine. The more they say everything is fine, the worse it actually is.
  2. Understand when your industry is getting f@cked and start developing alternatives or fallback options early, not AFTER you get laid off. (Software engineers right now should have realized a year ago at least their industry was getting screwed, as a specific example)
  3. Know the impact of systemic shifts (outsourcing and drive to the internet previously, AI now) and how you can counteract those as best possible, move to a role that isn't as likely to be clobbered as hard.
  4. Learn to cook healthy meals on the cheap - take out is $, but so is eating like sh!t. You can cook en-masse on Sunday and freeze for the week, but work on a plan to move to "high efficiency meal planning".
  5. Reduce your systemic expenses - if you've had "lifestyle creep" ratchet that crap back before you are in the crosshairs financially.
  6. Do your planned maintenance of stuff - now now now, later is NOT going to be better. If it's due, get it done." —@GreatResetBet

 rolling stones, cant always get what you want, mick jagger, rolling stones gif, jagger the rolling stones GIF  Giphy  

"Live within your means. Avoid debt. Don’t worry about keeping up with the Jones. Focus on your partner. We in our mid 60s, lived through tough times and even though we didn’t have the income to support it, put both their children through private high school at their request. Money was tight, but there’s a lot of ways to enjoy life that don’t include having a lot of money. Remember the line from the Rolling Stones: 'you can’t always get what you want, but if you try, sometimes, you get what you need'." —@ethanrotman
"Save during the good times. During the ‘08 crash, we had several friends who lost their homes to foreclosure. These were all hardworking people. We had been very good about saving and living below our means. The rainy day fund helped tremendously. They say, pay yourself first. I know it can be difficult but even 50/week will grow over time." —@joysheart

 potluck, potluck dinner, potlucks, potluck meal, potluck meals Pot Luck GIF by Partiful  Giphy  

"Do everything to keep a job, when the recession hits if you at least have a job you can pay the bills. Stop buying things except for food and must haves. Do you really need a lot of cleaning supplies? Makeup? Clothes? Dinner out? No. Cook your own food, learn to enjoy the outdoors, have pot luck dinners with friends." —@eatmore-plants
"It's honestly just lowering expectations and cutting out all but necessary expenses and shopping sales. We're still in our starter home because of the housing collapse. We were underwater for years and then the kids started school. It's about appreciating the little things." —@whatevertoad

 grit, understanding, hard work, perspective, resilient Robert Redford Yes GIF by GritTV  Giphy  

"The things that get you through tough times emotionally are your social network, keeping perspective, and your own personal grit. The things that get you through tough times financially are things like keeping your living expenses relatively low, living below your means, putting money away for hard times, and keeping up your job skills and professional networks." —@Shot-Artichoke-4106
"We got hit hard in both recessions and it was really hard to rebound because we were young and not well-established. We made it through by living as frugally as possible and avoiding 'lifestyle creep.' Also, one thing we got in a habit of doing was every year when we got our income tax refund (back when we still got refunds), we’d pay our car insurance in full for the year, put some in the kids’ college accounts, and put the rest in our house down payment fund." —@Mammoth-Ad-4806
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Server accepts huge tip from a 'creepy' man, making her coworker angry. Was she right?

"Don’t spill your business to others. Your money is your money."

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A customer and a server at a restaurant.

A 27-year-old female server disagreed with a coworker over whether she should accept a large tip from a customer who flirted with her. This raised a good question: If someone wants to give you a large tip, should the reason why matter? Even if it’s because the man thought she was “pretty”?

After all, if a man is throwing around his money, he has to have some hope that she’ll be impressed enough to go out with him or that she’d be willing to make another financial arrangement. But in the same scenario, he also runs the considerable risk that the woman will pocket the cash and have nothing to do with him, which is what she did.

The woman shared her story on Reddit to see if commenters thought she was in the wrong for accepting the large tip. “I (27f) am a waitress. Friday night, I served this table. It was a middle-aged woman and a very handsome middle-aged man. A guy I would have gone out with if he wasn't so creepy. He had made sure to mention that the woman he was dining with was his sister. After the meal, he gave me a $500 (US dollar) tip,” the woman wrote.

 tip, bill, restaurant, server, waitress, bill, gratuity A credit card and a bill.via Canva/Photos

“The tip was almost twice the price of the meal,” she continued. “He told me the tip was because I was so pretty. After work, I told a fellow waitress (32f), and she was angry. She told me it was a stupid decision to accept that. She said I made it seem like behavior like that is acceptable by accepting it. I probably would never accept a tip like that under those circumstances again. Am I [in the wrong]?”

The good news for the server was that the commenters overwhelmingly supported her decision, but with a caveat. She should take this opportunity to learn that, in the future, she should be quiet about the money she makes at work, especially when talking to her coworkers.

“It’s not like you asked for the big tip or agreed to do anything for it. If he’s wealthy and wants to leave a big tip, all the better for you. You did nothing wrong here,” the most popular commenter wrote. Other commenters felt that the coworker was simply jealous.

 server, waitress, restaurant, tip, service, smile, brunette woman A smiling server.via Canva/Photos

“As a former server, [you’re not wrong]. This was never about her principles; it was about her being upset you got a huge tip and she didn't. Your fellow servers care about their money, so you don't need to tell them about yours. Bragging about your huge tips is a good way to make enemies or get robbed after work when one of the shady ones sends a text to their friend or partner and has them waiting by your car outside," the commenter wrote. "Never talk about how much you made in tips. No one needs that information but you, the IRS, and your boss. I guarantee she would have kept the tip herself if she had been the one serving him.”

When talking about tips at work, many commentators said keep it to yourself because you’re only going to make people jealous, and in the worst-case scenario, jealous coworkers could put you in grave danger. “Don’t spill your business to others. Your money is your money,” a commenter wrote.

 woman, laptop at night, popcorn, woman smiling laptop, late night snack,  A woman eating popcorn while looking at her laptop.via Canva/Photos

Ultimately, most people are okay with the server accepting the large tip because nothing was attached to it. She was free to pursue a relationship with the man and chose not to, which was smart because he seemed like a creep. For the rest of us, the story is also a great reminder to keep your business to yourself. There isn’t much to gain from discussing your money with coworkers.

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