The Struggles of the Younger Generation
December 9, 2025
Key Points:
- Short Term Thinking Leads To Short Term Results
- Living In The Moment & Instant Gratification
- Future Planning = Successful Planning
- Cultural Shift Past Short Term Thinking
The younger generation in the United States today finds itself facing an incredibly complex web of financial struggles, rooted in both national and global events that have shaped their worldview and economic outlook.
These events have had an undeniable impact on their ability to build financial security, establish career paths, and ultimately, create stable futures.
From the aftermath of the September 11th attacks to the financial crash of 2008, and most recently the economic fallout caused by the COVID-19 pandemic, young people in the U.S. have been confronted with seemingly insurmountable challenges that have tested their financial resilience.
The 9/11 tragedy triggered a global war on terror and marked the beginning of a period of heightened uncertainty, both politically and economically.
For the generation that grew up in the aftermath of those events, a sense of insecurity became ingrained in their psyche.
Then came the 2008 financial crisis, which ravaged the job market, caused massive home foreclosures, and wiped out much of the wealth in the middle class.
Many young adults who had just entered the workforce or were still in school found themselves faced with a difficult and volatile economic environment, which delayed their ability to own homes, start families, or even gain a foothold in their careers.
The COVID-19 pandemic further exacerbated these economic difficulties.
It brought with it widespread job losses, a halt in economic activity, and government shutdowns that led to financial insecurity for millions of young Americans.
For many, the pandemic became a financial reset, but not necessarily in a good way.
Those who were already struggling found their situations made worse, and many younger people now face a landscape filled with inflation, job instability, and the rising cost of living—especially in key areas like housing, education, and healthcare.
As these events converge in a globalized economy, the financial problems faced by young people in the U.S. have become deeply interwoven with these crises.
The younger generation has not just faced the challenges of growing up during such trying times, but they now find themselves grappling with the consequences of these crises in the form of stagnant wages, expensive education, and a strained social safety net.
A Shift in Long-Term Financial Responsibility
One major trend that has emerged in recent years is the growing reliance on external support—often looking to the government or some form of social safety net as a means to secure financial stability.
Young people today are less inclined to prioritize long-term financial planning and independence, and instead, there seems to be a pervasive attitude that the government will step in to help them out in times of need.
The idea of financial independence—of planning for retirement, building wealth through savings and investments, and creating personal financial security—has given way to a focus on immediate gratification and short-term solutions.
The rise of the gig economy, with its freelance work and short-term contracts, has contributed to this shift. While it offers flexibility, it also comes with a lack of job security, benefits, and predictable income streams.
This has led many young people to put off planning for their future. The increased student loan debt crisis is another contributing factor.
As the cost of higher education continues to soar, many students graduate with six-figure student loan debts, creating an overwhelming sense of financial burden.
As a result, many feel that saving for the future is a distant dream, and that simply surviving day-to-day and keeping up with payments is their only immediate concern.
With the government stepping in to provide things like stimulus checks, unemployment benefits, and other forms of aid during times of economic stress (such as the pandemic), it is no wonder that some young people begin to expect or rely on this type of assistance to sustain them.
In 2020, two rounds of direct stimulus payments, known as Economic Impact Payments, were authorized by Congress and signed into law by President Trump in response to the COVID-19 pandemic.
This type of thinking, however, can be dangerous. It fosters a dependency on external systems that may not always be available or reliable.
While safety nets are crucial for those in immediate need, they are not meant to be long-term solutions for individuals who are able to take steps to secure their own futures.
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The YOLO Mentality: Live for the Moment
One notable cultural shift that has taken hold in recent years is the rise of the “YOLO” (You Only Live Once) mentality.
This mindset encourages individuals, particularly younger people, to prioritize living in the moment and indulging in experiences, often at the expense of long-term financial goals.
The rise of social media, with its constant display of curated lives and the pressure to keep up with trends, has only amplified this mentality.
Young people today are bombarded with messages that suggest material success, lavish vacations, expensive gadgets, and luxurious lifestyles are markers of happiness and success.
This desire to live for today often leads to financial decisions that are driven by instant gratification rather than careful planning.
With the constant pressure to keep up with others, many young people find themselves caught in a cycle of spending—on travel, fashion, dining out, and other experiences—without considering the long-term consequences.
The YOLO mindset tends to overlook the fact that true financial security is not something that can be achieved through flashy purchases or temporary indulgences.
Additionally, the “Buy Now, Pay Later” (BNPL) trend has further fueled this mentality.
BNPL services allow consumers to make purchases and pay for them in installments, often with little to no interest if payments are made on time.
While these services may seem appealing in the short term, they can easily lead to consumers racking up debt without fully understanding the long-term implications.
Many young people have become accustomed to the convenience of BNPL programs, using them for everything from electronics to fashion to everyday essentials.
However, without a clear understanding of their total cost and an ability to manage their budgets effectively, it becomes easy for individuals to spiral into debt.
The result is a generation that is increasingly living in the moment—spending on experiences and goods without fully considering their financial futures.
The idea of paying for things as they go has become normalized, but it carries risks.
For young people, taking on debt without a plan to pay it off can quickly lead to a situation where they find themselves trapped in a cycle of borrowing, only to face higher interest rates and fewer financial options down the road.
What Can Be Done to Correct This?
The good news is that all is not lost. There are steps that young people can take today to set themselves up for better financial futures, but these require a shift in mindset and approach to money.
1. Be Mindful of Your Situation
The first and most important step is awareness. Understanding one’s financial situation is critical.
Too many young people avoid thinking about their finances or don’t truly know where their money is going each month. By creating a budget, tracking expenses, and evaluating income sources, it becomes easier to see where adjustments can be made.
Cutting out unnecessary expenses, avoiding impulse buys, and being conscious of recurring subscriptions or debts can free up resources for more important financial goals.
2. Plan for the Future
Financial planning may seem overwhelming at first, but it is essential for long-term stability.
Setting aside money for an emergency fund, retirement accounts, and investments in the stock market or real estate can provide the foundation for financial independence. The earlier young people start investing in their futures, the better.
Taking advantage of compound interest through savings accounts and retirement funds like 401(k)s or IRAs can help grow wealth over time. It’s also important to understand the risks involved with debt—whether it’s student loans or credit card debt—and create a clear plan for repayment.
“Maybe Buy and Track Your Dividends!”
3. Be Responsible and Avoid Relying on Others
No one else can take care of your financial well-being but you. While external systems like the government may be able to provide short-term support, relying on them as a long-term solution will not build a sustainable future.
Young people need to take ownership of their financial decisions. This means being responsible with credit, paying bills on time, avoiding debt traps, and continuously learning about money management.
Financial literacy is key, and there are many resources available, from books to online courses, that can teach young people how to budget, invest, and save.
4. Reject Instant Gratification in Favor of Long-Term Stability
It’s also important to shift away from the “YOLO” mentality and understand that financial security does not come from spending on fleeting pleasures. Being able to enjoy the present while planning for the future is a delicate balance.
A person doesn’t have to sacrifice everything for financial stability, but they should prioritize future needs over momentary desires. This means resisting the urge to purchase things that are beyond their budget or to go on vacations that can’t be afforded.
The “Buy Now, Pay Later” mentality needs to be viewed with caution. These services can be useful in moderation, but they should not become a way of life.
Rather than thinking of debt as a convenient tool for acquiring goods, it should be approached with care, knowing that borrowing money today means a future obligation to pay it back.
Conclusion
The financial challenges facing today’s youth are immense.
But Not Unheard Of In Our Country’s History!
However, by shifting away from a dependency on external systems, rejecting the YOLO mindset, and being more mindful of their financial health, young people can take control of their futures.
Building wealth, investing in long-term goals, and practicing financial responsibility are all key components of achieving financial success.
It may not be easy, but with the right tools and mindset, young people can break free from the patterns that have held them back, create security for themselves, and build a better future.
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