Generation Z in the U.S. (usually the generation born between 1995 and 2009) is a different group. They grew up in the age of the internet and social **, they grew up in the shadow of the 911 terrorist attacks and the 2008 financial crisis, and they were educated in a context of globalization and pluralism. They are considered to be an open, innovative, diverse, and confident generation, but also an anxious, lonely, narcissistic, and irresponsible generation.
However, neither positive nor negative reviews can hide the fact that Gen Z in the United States is very financially dependent on their parents. According to a recent survey by the Pew Research Center in the United States, only 45% of young people between the ages of 18 and 34 say they are completely financially independent of their parents. Among young people aged 18 to 24, the proportion is as low as 24 percent. Conversely, 55% of young people said they had received some or a lot of financial support from their parents in the past 12 months. Among young people aged 18 to 24, the figure is as high as 75 percent.
Why is it so difficult for Gen Z in the United States to break away from their parents? There are many reasons for this, mainly including the following:
The cost of education is high. Gen Z in the U.S. is the most educated generation, but it is also the generation with the most student loans. According to the Pew Research Center, 36% of 18- to 34-year-olds have a 4-year college degree, compared to just 25% of their parents, known as baby boomers. However, such qualifications do not come cheap. In the 2019-2020 academic year, the average tuition fee for public universities in the United States was $10,240 and for private universities was $36,930. In the 1989-1990 school year, the figures were $3,120 and $15,600, respectively. This means that college tuition has more than tripled in the last 30 years. To pay for these expenses, many young people have to borrow. According to the Federal Reserve Board, total student loans in the U.S. reached $1 as of the fourth quarter of 2020$7 trillion, more than double the number in 2008. Among young people between the ages of 18 and 29, 43% have student loans. These loans not only put heavy repayment pressure on young people, but also affect their other consumption and investment, such as buying a house, car, getting married, having children, etc.
The job market is highly competitive. Gen Z in the U.S. entered the job market during a cycle of recession and recovery. Their job search experience was hit by the double whammy of the 2008 financial crisis and the 2020 pandemic. According to the U.S. Bureau of Labor Statistics, in April 2020, the unemployment rate in the U.S. soared to 148%, the highest level since records began in 1948. Among young people aged 18 to 24, the unemployment rate is as high as 253%。While the unemployment rate has declined as the pandemic eases and the economy recovers, it is still higher than pre-pandemic levels. In January 2021, the unemployment rate in the United States was 63%, while among young people between 18 and 24 years old, the unemployment rate is 139%。Even if there is a job, young people do not earn much. According to the U.S. Census Bureau, in 2019, the average annual income of young adults between the ages of 18 and 34 was $40,200, compared to $40,500 in 1989 (in 2019 dollars). This means that over the past 30 years, young people's incomes have not grown, or even declined. And during the same period, the inflation rate in the United States was 982%, which means that the purchasing power of young people is greatly reduced.
The cost of living is rising. Gen Z in the U.S. also faces significant challenges in terms of the cost of living. The cost of housing, in particular, is one of the biggest expenses for young people. According to the U.S. Census Bureau, in 2019, the average home price in the United States was $240,900, while in 1989, the figure was $101,100 (in 2019 dollars). This means that over the past 30 years, home prices in the United States have increased by 1384%。And in some big cities, such as New York, San Francisco, Los Angeles, etc., housing prices are ridiculously high. In these places, it is almost impossible for young people to buy a house. Even if you rent a house, it costs a lot of money. According to the U.S. Census Bureau, in 2019, the average rent in the United States was $1,134, while in 1989, the figure was $602 (in 2019 dollars). This means that rents in the United States have increased by 88 percent over the past 30 years4%。