Despite the economic burden of the cost of living, many people enjoy splurging on small expenses, such as a morning coffee or a manicure. This often causes older generations to think that today’s youth squander their money rather than being financially savvy.
But Nicholas Powers, a millennial (people born between 1981 and 1996) from the U.S. told Newsweek that times have changed, and this notion is “largely outdated.”
Powers, who is in his mid-30s, shared a video on social media (@thatnickpowersguy on TikTok and Instagram) explaining that Generation X (people born between 1965 and 1980) and Baby Boomers (those born between 1946 and 1964) think young people have a spending problem, but in his view, that’s not the case. He suggests there’s been a shift because the value of luxury items versus everyday essentials has flipped.
In the days since it was posted, the clip went viral with over 3.2 million views and 589,400 likes on TikTok at the time of writing.
“I don’t believe older people understand how expensive the cost of living has gotten, especially how it compares to wages,” Powers told Newsweek. “They were raised to believe that cutting spending on smaller luxury items was the best way to build for the future, which was largely true in the economy they grew up in.
“However, they believe that since their financial values held true for their generation as well as generations before them, it still holds true today.”
Powers used Census data and old magazines to figure out the relative cost of items in the past, and compared them to current prices. In his video, he suggested that buying a TV in the 1950s could cost $495, which was the equivalent to a year’s worth of the median rent back then. Comparatively, a TV can now be purchased for under $100, so doesn’t amount to nearly as much as it once did.
Other examples include the cost of coffee in the 1990s compared to now, which hasn’t changed much, and furniture, which has become cheaper. While these perceived “luxury items” have become more accessible, it’s the everyday costs, like groceries and rent which have become more expensive.
Powers continued: “Electronics have become much cheaper than they were. For instance, in the 1980s, a desktop computer was typically around $2,000, which works out to over $8,000 today. However, it’s not just electronics as furniture and clothing are also cheaper now.
“The idea that common everyday items are inherently luxury is an outdated notion, since most of these items (smartphones, computers, transportation) are required to survive in today’s world.”
Not only have they become cheaper to manufacture and import, but Powers suggests they’re integral to how we interact as a society too. In the past, Boomers and Gen Xers might have considered a smartphone or laptop unnecessary and lavish, but now they’re essential.
This is why Powers believes there’s “a firm disconnect” between the generations. Indeed, these outdated calculations can also make young people feel a sense of guilt for their spending habits, according to Powers.
He told Newsweek: “There’s a feeling of failure when younger generations try to listen to the advice of their older counterparts. Those who are struggling and end up cutting out luxuries also end up cutting themselves off from a lot of self-expression and social activities. They end up removing pieces of their life and feeling depressed, anxious, or alone. On top of that, they’re still not saving enough money to afford basic necessities.”
Whether it’s a subscription to Netflix, grabbing a coffee, or going out for food, Powers insists these are all just as valuable for wellbeing.
Antwyne DeLonde, founder of VisionX Finance and a former financial adviser, agreed with Powers on many points, telling Newsweek that “societal values around money have evolved.” He suggests that young people aren’t wasting their money on indulgences, but they’re simply spending within their realms of affordability.
“A $5 coffee is a minor expense compared to the astronomical cost of rent or utilities, which consume a much larger share of budgets,” DeLonde said.
He continued: “In the ’70s, saving for big-ticket items like a TV or car symbolized financial prudence. Now, the challenge lies in managing the rising cost of basics while maintaining a semblance of self-care. It’s easy for older generations to misunderstand this dynamic because they lived in an era where the cost of essentials didn’t dominate household budgets as they do today.”
Indeed, he highlights a need for greater empathy across generations when it comes to finances. What was once the norm may no longer be applicable, but that doesn’t mean young people are being frivolous with their money.
“Balancing necessary expenses while making room for small comforts isn’t wasteful—it’s survival in an economy with vastly different rules,” DeLonde told Newsweek.
The Online Reaction
Since sharing his video online, Powers has been amazed by the response. He doesn’t want to pinpoint anyone as wrong, but hopes to shed light on why there are such contrasting views and help bridge the gap between the generations.
“Just because you don’t understand someone’s point of view, that doesn’t mean they’re wrong,” Powers said. “Everyone expresses themselves differently and everyone has different lifestyle choices. That doesn’t mean they’re making a bad decision. They just have different lived experiences and a different view of the world.”
The viral TikTok video gained more than 5,000 comments already. While some people disagreed with Powers, many thanked him for putting things into perspective.
One comment reads: “It’s legit cheaper for me to eat out then buy healthy groceries.”
Another TikTok user wrote: “As a Boomer, this is the first argument that makes sense to me. But ya’ll still pay for convenience far more than we did.”
While another person added: “Spending money to make yourself feel better is the whole issue. Previous generations went without to get where they are. Not all, but the vast majority.”
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