The youngest generation of working Americans has a new dream for their future and it doesn’t involve a white picket fence or decades working the same steady job.
Millennials between the ages of 23 and 38 want more than the tangible benefits their parents yearned for, according to a 2019 Varo Money survey.
While feeling financially secure is still high on the list of priorities at 42%, the new American dream envisioned by millennials includes feeling happy (36%) and having the freedom to focus on their individual wishes and needs (33%.)
Those kinds of goals, which are focused on emotional rather than material ideals, have caused a growing disconnect with the previous generations — 62% of the survey’s more than 1,100 respondents said their version of the American dream is different than their parents. Nearly half (46%) say their parents don’t understand their generation’s financial struggles and 25% blame their parents for their financial situation.
To be sure, life is different for millennials. They have very different financial challenges than the generations before them. They came of age, many entering adulthood, during the 2008 recession. And the student debt crisis has hit them hard. Overall, Americans are carrying nearly $1.6 trillion of student loan debt, according to the Federal Reserve.
While much has been reported about the debt’s effect on home-buying and even marriage, Varo’s new survey underscores how carrying such debt even affects ones’ attitude on what dreams are—and are not—attainable.
In a general way, Boomers and GenXers didn’t face the education costs that millennials have, and thus didn’t enter adulthood with the same kind of indebtedness. For college grads in the 20th century, they could expect to start an entry-level job and work their way up the corporate ladder at the same company over a period of many years. Think 25th anniversary clocks and watches — but one in three (35%) millennials think that kind of a steady job falls firmly in the camp of the old-school American dream, not theirs.
Given the rocky financial picture that many millennials have face, it’s not surprising that while they may envision a future complete with a new American Dream, nearly half — 47% — say it feels impossible to achieve.
Interestingly — there is sharper divide along gender lines. More than half of millennial women (51%) said they feel the new American dream is impossible, compared to 43% of men. Forty percent of men, however, say they feel confident that this new American dream is achievable compared to just 35 percent of women.
For most, the new American dream is just that … a dream. Only 7% of survey respondents said they are already living their dream.
What’s holding people back from their dreams?
As mentioned above, we can point a finger at the debt trap. More than half — 55% — say they have “way too much debt” and that’s what is getting in the way of their American dream. In fact, one in three said they’d rather be debt free than have a down payment to put on a house.
The other things that are running interference achieving the new American Dream? A lack of opportunities at 50 percent, corrupt government and politics at 41% and, even at these younger ages, burnout at 33%.
The generational difference, millennials reported, boil down to a changing society, the crushing cost of higher education (again!), and a more stressful job market once they graduate.
Nearly half of millennials surveyed (47%) think their American dream is different than their parents’ generation because social norms have changed. Another 43% thinks their generation’s preferences and desires have changed since their parents’ early days.
Another 43% say student debt and the cost of education has upended the traditional American dream and 39% say technology’s impact on the world has contributed to the new American dream.
Government policies and a sense of community loss was also cited, though lower on the list with 29% and 22%, respectively. Even climate change was noted, with 16% of people citing that as a reason for why their dream has changed.
What hasn’t changed, however, is that these millennials have a defined view of success and, like the generations before them, they are eager to make their dreams a reality, even if their wish list looks noticeably different. Nearly half — 46% — said they are hopeful and optimistic when thinking about the future. Hold on to that!
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