It’s a tough time for any Millennial or Gen Zer to experience their “firsts” – first home, first marriage, first child. They have higher earnings yet bigger financial struggles than the generations that came before them. Many are delaying buying homes because of skyrocketing sale prices. Others are putting off starting a family due in part to work demands but also because of the astronomical costs of childbirth.
Did you know that it is more expensive to have a baby in the U.S. than anywhere else in the world? Vaginal births cost over $30000 while C-sections cost over $50000. Even worse, not all insurance companies cover the cost of childbirth. All ACA-compliant health care plans must cover prenatal care and screenings, while other insurance companies may not.
Even if they were able to save to have a baby, they’d need a bigger place to live and rent isn’t cheap! In the ‘90’s rent ranged between $350 and $600 per month depending on where you lived. Today renters pay between $1700 and $2600 for the same 960 square foot apartment. Electricity thirty-five years ago only cost $0.08 per kilowatt-hour. Today, we are paying a whopping $12 to $40 per kilowatt-hour depending on the state. We could go on, but you get the point.
Incomes are higher today than in years past. Yet, most Americans still live check to check because of the cost of living. So, what is the key to feeling financially comfortable when you are spending almost every penny you are earning? A healthy mindset is a good start. Remind yourself that you are okay and that you can afford your lifestyle. Meanwhile, look for small ways to reduce spending where you can so you can put more money towards an emergency fund. And look for ways to generate added income without giving up all your free time. If you have questions about finances, contact Alloy Wealth at 800-689-3935. We are always here to help!