4 Things Our Parents Could Afford That Feel Out of Reach Now
Written by
Nicole Spector
Edited by
Molly Sullivan
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So much has changed in the U.S. in the past 10 years. Heck, a lot has changed in the past five years (can you even remember what it was like to live in the pre-pandemic world?). Imagine then, all that has changed in the past, say, 50 years — particularly as it pertains to the realm of personal finance?
Think, in particular, of how much more affordable or, perhaps a better way to put it, how much more accessible certain things were. Think of all the things your parents could afford that feel totally out of reach for your generation. What were they and why have they become so inaccessible to us? Let’s focus on these big ones.
Owning a Home
Back when our parents or grandparents were young and working their way up in their careers, they often had the ability to buy a home. It was an accomplishment, but not an uncommon one. Today, many people can’t afford to buy a home — let alone do so without being seriously financially strained.
“The average home in the United States in the 1980s sold for $79,000,” said Erika Kullberg, a personal finance expert, attorney and the founder of Erika.com. “Now it’s more than $400,000, an increase of over 400%.”
There are a few key factors driving up the price of homes in recent years and making them unaffordable for millions.
“Demand, supply and inflation have increased the price of homes to the point that it isn’t even an option for many millennials and Gen Z,” Kullberg said. “Boomers had lower prices, and lower interest rates, working in their favor.”
A College Education
Can you remember a time when a college education was somewhat affordable for the middle class? You’d have to travel back in time to believe it.
“In 1990, the average undergraduate fee for a public university was about $3,800,” Kullberg said. “It’s currently about $10,740 — an almost 300% increase.”
Why has the cost of college tuition soared in recent years? Kullberg pointed to a rise in administrative costs, cuts to state budgets and inflation.
“Students today are paying far more student debt than their parents, many of whom were able to pay for college by working part-time jobs,” Kullberg said. “Today, that simply isn’t a reality for most students.”
Healthcare
The costs of healthcare have also astronomically risen over the last couple decades. Our parents could better afford it because the system worked more in their favor.
“Previously, employees’ health insurance was most often covered, and the individual premiums were far lower,” Kullberg said. “Even if you have insurance, healthcare today is more expensive than ever with rising premiums, deductibles, and prescription drug prices. For instance, family health insurance premiums have risen from an average of $5,791 in 1999 to more than $22,000 in 2021, adding new pressure on younger individuals.”
Big Vacations
Do you remember growing up in, say, the ’80s or even the ’90s, when families would go on epic summer vacations together every summer? Parents would literally check out of life for two weeks and go off to some resort with their kids. That seems completely impossible for most of us today. Not just because we can’t imagine unplugging from a laptop for a whole two weeks, but we can’t often afford major vacays.
“I remember when family vacations were more common during the ’80s and ’90s,” said Cory Arsic, founder at CanadianParent.ca. “However, the rise in costs for airfare, hotels and just about everything else means that international and even domestic trips have become really pricier. It puts a strain on families.
“Planning any vacation has become a big financial decision and not everyone can do it,” Arsic said. “As this trend continues, children, families — all of us — will find it hard just to afford the travel experiences that their grandparents could.”
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