If you’re Gen X (or even a millennial), your baby-boomer parents might scold you for carrying debt and struggling financially.
And the numbers often seem to support their critique.
Gen Xers are likelier than baby boomers to pick “live for today and enjoy life” over “save and prepare for tomorrow” as a money outlook, according to a study from Allianz Life Insurance.
But the “enjoy today” mindset is often hampered by worries about “planning for tomorrow.” The report found Gen Xers feel “overwhelmed about their financial future.”
And it’s easy to see why. Compare how much more debt Gen X carries versus baby boomers:
- Mortgage debt: 60% higher
- Student loan debt: 140% higher
- Credit card debt: 33% higher
So yes, you might need to tweak your attitudes and habits around money.
But before you dwell on personal shortcomings, remember another big factor: life is, in many ways, simply pricier now.
Below are six major expenses you’ll likely pay more for than your baby-boomer parents did — and ways to cut those costs.
1. A College Degree
The actual cost of higher education keeps climbing.
In 2015 dollars, the average annual price to attend a four-year private college in 1975–76 was $10,088; today it’s about $30,405. For public four-year universities, the average rose from $2,387 to $9,410 per year.
Put another way, the inflation-adjusted cost of college more than tripled — and those figures reflect tuition and fees only, excluding room and board.
That rise helps explain the growth in student loan balances. Here are resources to help lower the price tag of a degree:
- The Best Value Colleges: A Fancy Degree Might Be Cheaper Than You Think
- 100 College Scholarships
- 100 Weird College Scholarships
- Want a Free College Degree? Get a Job at Starbucks
- Study Abroad in One of These Countries and Get a Free Degree
- Don’t Want a 4-Year College Degree? Try One of These 6 Alternative Education Programs
- No Degree? No Problem. These No-College-Required Jobs Pay $59K+ a Year
- 7 Strategies for Earning an Impressive Income Without a College Degree
2. A Home
There are several ways to track home prices, but the long-term direction is upward across studies.
For instance, one recent graph indicates the median house price is at least 33% higher than it was 40 years ago after adjusting for inflation. That helps explain why Gen X carries more mortgage debt than baby boomers.
What can you do about it?
Begin by considering a smaller house.
There’s been a clear move toward larger homes, which has driven up average prices. Other steps include:
- Buy on the Right Day to Save Big on Your Home
- Use These 10 Ways to Save Money on Your Mortgage
- Determine Whether You’re Really Ready to Own a Home
3. Health Care
Since 1980, health care spending in the U.S. has doubled as a share of GDP.
Forbes has noted that per-capita health care costs are on pace to hit $10,000 per year this year.
If you lack employer-sponsored coverage, you’re responsible for paying those bills yourself — either directly or through insurance premiums.
Ways to cut health-related spending include:
- Set up a Health Savings Account
- Use These 10 Ways to Save Money on Medical Costs
- Get a Second Opinion (It Saved Me $6,000)
- Pay Less for Quality Dental Care
- Negotiate Lower Medical Bills
4. Food
Grocery costs have risen faster than overall inflation, according to the USDA.
If you aim to eat healthily, you’ll likely pay more than your parents did. Fresh produce now costs roughly 40% more than it did 30 years ago, while prices for dairy, fats, sweets and drinks have actually fallen in real terms.
Try these tactics to shrink your grocery bills:
- Want to Eat Healthy on a Budget? This FREE Cookbook is a Game Changer
- How to Save Money On Groceries: Tools and Tricks to Save $100 or More
- How One Mom Feeds a Family of 5 for $64 a Week
- Eight Walmart Hacks for Cheaper Groceries
- How Kyle Taylor Got $49.91 in Groceries for $3.90
- Save Big on Groceries By Shopping on This Day of the Week
- 6 Secret Places to Find Coupons for Fresh Fruits and Vegetables
5. Child Care
Maybe your parents relied on inexpensive sitters or relatives to watch you when they were young.
Even when they purchased regular child care, it cost less. The U.S. Census Bureau reports that average weekly child care costs rose from $84 in 1985 to $143 in 2011, after inflation adjustment.
To lower those expenses, start with these reads:
- 5 Free or Low-Cost Child Care Options
- The Best Time to Have a Baby, Financially Speaking
6. A Car
Compare new car prices from three decades ago to today, and adjust for inflation.
The pattern is obvious: vehicles cost more now. Part of that increase reflects better build quality and more included features.
To lower the price of buying a car, consider models with fewer extras or generally lower sticker prices.
For even bigger savings on ownership and operating expenses, check out these pieces:
- How Much Can You Save by Ditching Your Vehicle?
- How Downsizing to One Car Could Save Your Family $5,000 a Year
- 8 Simple Ways to Save Thousands of Dollars on Car Repairs
- 23 Expert Ways to Save on Gasoline
Michael Harris is the author of “101 Weird Ways to Make Money” and founder of EveryWayToMakeMoney.com. He’s worked as a repo man, walking-stick carver, search engine evaluator, house flipper, tram operator, process server, mock juror, and roulette dealer, but among more than 100 ways he’s earned money, writing remains his favorite so far.
