Inflation has become a mainstay of our times for people around the world, and America is no exception. A majority of Americans claim uncertainty about their financial future. While most Americans are experiencing the effects of inflation, the trend seems to be impacting young Americans worse than other cohorts. One could even say young Americans are forcing themselves into an “inflation diet” as they choose between groceries and other purchases.
Inflation continues to linger
Prices are settling, and inflation appears to be falling too. However, prices are still significantly higher than they used to be. Inflation clocked in at 4.98% at the end of March 2023. That’s a significant drop from the 6.41% inflation rate in January 2023. While this is the lowest inflation has been since April 2021, it’s still higher than most Americans have experienced throughout their lifetimes.
The rise in the cost of living, burdened by inflation, has many, particularly young Americans, uncertain about the future. With rising prices and wages staying stagnant, many young adults are struggling to make ends meet. In order to make ends meet, some are forced to go on an “inflation diet”—sacrificing grocery items, clothing, and other essential purchases to pay for necessities.
Of course, these choices aren’t always necessarily frugal. Many also choose to make sacrifices in order to lead a certain lifestyle. Many Millennials and Gen Z are choosing to travel, for example, despite not having financial security. However, from reports that 4-in-10 are choosing to buy food for their pets instead of themselves, we can assume the predominant reality is most young Americans aren’t leading influencer lifestyles.
A rocky financial journey
Accompanying inflation is a growing sense of impending disaster for young Americans. It’s easy to forget that Millennials and Gen Z, together, cover Americans aged 18-41. Despite their relatively young age, both groups have experienced worldwide financial disasters in their lifetimes. While everyone in other age groups also went through the Great Recession and the pandemic lockdown, both hit Millennials and Gen Z at critical times in their financial journeys.
Millennials entered the Great Recession just as many of them expected to enter the workforce. That put a damp on their prospective futures and started their careers during one of the worst global financial crises in recent memory. The pandemic lockdown hit Gen Z at around the same junction in their lives, with the added detriment of having to be in lockdown for a controversial two years.
It should come as no surprise that young Americans are disillusioned by the future they see forming. The financial pressure brought on by the last two years, including the lingering inflation we’re experiencing, has done little to promise a bright future for America’s younger generations.
