While pretty much everyone is experiencing the negative effects of rising housing costs, inflation, and the “luxurification” of necessities like groceries or utility bills, younger generations like Gen Z are facing additional financial stressors like new student loan debt, an insecure job market, and the anxiety of adulthood that exacerbate an already unfortunate situation. While Gen X is in the similar position, most of them at least had the opportunity to have it a bit better back when they were younger, and there are common things Gen X got to experience that are no longer affordable for Gen Z.
A survey from Experian found that 51% of Gen Zers feel worried about not being financially secure enough “to do what they enjoy later in life.” At least in part, that might be because of the simple experiences they feel are now simply unaffordable.
Here are 11 common things Gen X experienced that are no longer affordable for Gen Z
1. Going on vacations
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Barely making enough money, oftentimes from multiple jobs, to pay for basic necessities, Gen Z struggles to invest in relaxing experiences like vacations, going out, or planning events with the people in their lives. Feeding into the cycle of isolation and loneliness that greatly impacts Gen Z, some are even opting to take on additional debt to fund these ventures.
According to MarketWatch research, three-quarters of Americans have taken on debt to fund vacations, unwilling to sacrifice the genuine benefits of social connections and a break from work. While they’re often criticized for seemingly irresponsible spending habits, the majority of Gen Z has no larger financial aspirations — like buying a home — that they feel pressured to save and sacrifice for.
2. Meeting friends in community spaces
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Compared to older generations who could meet new people in shared community spaces like a public park, coffee shop, or free community events, Gen Z is experiencing higher rates of loneliness due to the deterioration of these “third places.” Met with rising prices — like $10 for a coffee shop latte — and lacking funding for public areas like parks, libraries, and community centers, they’re left to maintain connections solely online.
Even social events like book clubs and public park entrance fees have become subtle luxuries for younger generations that feel pressured into saving every penny for housing costs, loan payments, and basic necessities.
3. Buying a home
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According to a Credit Karma report, nearly 57% of surveyed respondents, with a large chunk being Gen Zers and millennials, say they can’t afford to purchase a home, despite having a stable income.
While their parents could save for a home, build financial comfort, and invest into retirement and savings accounts with their first few jobs in adulthood, younger generations like Gen Z are feeling consistently left behind. Working long hours and multiple jobs, burning themselves out, and sacrificing their personal time just to afford necessities, they have no extra money (or mental capacity) to consider investing into future planning or big investments like a home.
4. Frequently dining at restaurants
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According to Vericast’s 2024 Restaurant TrendWatch, 67% of respondents say dining out at restaurants has become too expensive for their current financial situation, leading to larger grocery bills, time spent preparing meals, and less social connection with their friends and peers in public.
Nearly 40% name inflation as the biggest barrier to eating out, as it’s contributed to rising costs of most things, from booking a ride-share, to splurging on a meal, to going out for drinks afterwards.
The isolation and negative effects of loneliness on Gen Z, like social anxiety, also backhandedly contribute to their tendency to eat at home — with high levels of “menu anxiety” while ordering serving a own unique barrier.
5. International travel
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A report from Bank of America states that nearly 24% of Gen Z has felt pressured by friends to take a trip they can’t afford, oftentimes resorting to taking on credit card debt to feel a sense of belonging and connection with their more financially comfortable peers.
Whether it’s a domestic road trip or an international summer vacation, the costs of airfare, hotels, and general travel expenses have become a luxury for Gen Z, compared to older generations like Gen X that often had the ability to save for these outings.
6. Owning a pet
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Nearly 72% of pet owners say that the cost of pet ownership has drastically increased in the past year alone. From veterinarian bills, to grooming costs, and even buying dog food, the financial burden of having a furry friend isn’t feasible for Gen Zers already struggling with basic bills.
Although they’re generally self-aware and their own personal development and general wellbeing, which studies show our animals positively contribute to, pet ownership is one of the common things Gen X experienced that are no longer affordable for Gen Z.
7. Investing in a retirement fund or savings account
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According to Bank of America, nearly 57% of Gen Z respondents don’t have enough money in their savings account to support them through an emergency, which would typically be between three to five months of expenses. In addition, only 15% of those Gen Z workers have enough money at the end of the month to contribute to a general savings account.
Even after acquiring a college degree, they’re contributing near nothing to larger investment accounts like a retirement fund, compared to Gen Xers at the same age. Living paycheck-to-paycheck, Gen Z has no choice but to focus on the present moment.
8. Going out to clubs
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NBC News reports that many Gen Zers are feeling “nostalgic” for a club culture they never had the luxury of experiencing. Whether it’s post-pandemic consequences or rising costs, Gen Zers aren’t going out to clubs and bars to the same extent that people in the ’90s and early 2000s did at the same age.
In the last year alone, following steady trends from previous years, the cost of a cocktail increased by over $1, according to a CGA by NIQ report. Already struggling with affording rising rent payments and necessities like groceries, spending nearly $150 on an average night out, from drinks, to ride-shares, to dinner, just isn’t an option for many Gen Zers.
Again, this lack of social connection and shared going out experiences are partially contributing to rising rates of loneliness amongst younger generations, with a study from Gallup finding that nearly 30% of people aged 19 to 29 feel persistently lonely.
9. Buying a new car
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From the purchase price to repair and maintenance costs to paying for gas and insurance, the affordability of getting a new car seems largely impossible for many Gen Z adults. According to a 2024 study, the average cost of owning and operating a car is now $12,297 annually, an increase of $1,380 per year from 2023.
Compared to 2014, when the costs of owning a car were closer to $8K per year, the reality of the growing financial burden Gen Z experiences today is impossible to ignore.
Statistics from the Department of Transportation suggest that the many of Gen Zers aren’t getting their driver’s licenses at all. This has been attributed to their experiencing higher rates of anxiety, financial factors, and the accessibility of ride-share options, with many Gen Zers simply rely on their parent’s cars or public transportation to get around.
10. Having a big wedding
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The Knot’s 2023 Real Weddings Study found that the average cost of planning and hosting a wedding has reach close to $35K. With such a high price tag, many Gen Z couples are instead opting to elope.
Of course, attending and being a part of other people’s weddings has also subtly become a luxury for younger generations, as bridal party members are often expected to contribute hundreds, if not thousands, of dollars for bachelorette parties, showers, trips, and gifts. Some guests are even now expected to “pay for their plate” with cash and wedding gifts.
For Gen Z parents, finding childcare for weddings can be an added expense and stressor, especially if there aren’t grandparents or other family members available to provide no cost care.
11. Expensive hobbies
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From traveling to sailing to skiing, many popular hobbies that Gen Xers had the luxury of jumping into are grossly inaccessible for younger generations. Not only do they struggle with finding the free time, with an Ernst & Young study revealing that many are working several jobs just to get by, but they don’t have the extra money to spend on gear or investing in resources.
Generally prioritizing and valuing work life balance and personal development more than Gen X, many Gen Zers have resorted to reimagining parts of their daily routines — like exercise — in a fun way, in an attempt to reap the benefits of their personal time without investing too much extra money or time.
Zayda Slabbekoorn is a staff writer with a bachelor’s degree in social relations & policy and gender studies who focuses on psychology, relationships, self-help, and human interest stories.
