Keeping up with peers causes financial struggles for multiple generations

The majority of Americans are concerned about the state of their finances and with “keeping up with the Joneses’,” but even Millennials and Gen Z are worried about the high cost of living these days, according to a 2019 Modern Wealth Survey.

In a Business Journal article, “two-thirds of millennials live paycheck to paycheck, and 36 percent say that student loans make it a challenge to save money. Social media is also having a profound impact on how people manage their money. Nearly half (49 percent) of millennials and 44 percent of Gen Z cite that they are likely to spend money on experiences because of something they saw on social media.”

The survey shows that “three in five Americans pay more attention to how their friends spend compared to how they save, with an equal number saying they’re at a loss to understand how their friends are able to afford the expensive vacations and trendy restaurant meals they portray on social media.

According to the survey, “When asked what they would do with a sudden $1 million windfall, more than half (54 percent) of survey respondents say they would spend it—on a house first, followed by cars and travel. In addition, they say they would use the funds to pay down debt (28 percent), invest (23 percent) and save (21 percent). In comparison to other generations, Gen Z respondents were the most likely to say they would save at least a portion (37 percent).”

Read the full article here.