Is It Too Late For Young People To Get Ahead Financially?

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Edited By: Andrew Gonzales

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The biggest financial mistake you will ever make was being born after 1980, homes are unaffordable, you need a loan to go to college, jobs are scarce and financial meltdowns are common. If you are a young person you have to ask yourself, is it too late for me to ever get ahead financially?

Bill Gates, Steve Jobs, Paul Allen, Steve Balmer, Eric Schmid and Vinod Khosla all have some things in common. These men are all tech billionaires who were born in 1955. According to the author and journalist Malcolm Gladwell this is no coincidence. Gladwell argues that Bill Gates wouldn’t have founded Microsoft if he wasn’t born at just the right time. 1955 was the right time to be born if you wanted to be a tech billionaire because you would have been the right age in 1975 to capitalize on the personal computer revolution right as it was beginning. If you were born after 1980 you were the right age to start paying five figures for college tuition, six figures for a basic home and entering the job market after the dot com bust, the global financial crisis or the Covid-19 Pandemic. Gladwell noticed that people ascribe Bill Gates's success to being "really smart" or "really ambitious". He noted that he knew a lot of people who are really smart and really ambitious, but not worth sixty billion dollars.

Tech billionaires are not the only group this happens to. A common and seemingly unavoidable problem with online Role-Playing Games is that long term players who started the game when it first launched have had time to level up their characters, collect the best gear and build in game fortunes. The game developer needs new players to join the game to grow their revenue base or at minimum replace players that get bored of the game and cancel their subscriptions. New players will be competing with existing players have more actual experience behind the keyboard and have higher level characters in the game that new players just can’t compete with. Nobody wants to spend their free time getting PWNED on an old video game, so developers must choose one of two options. Option one… reduce the gap between new players and old players and risk making their most loyal customers angry, or option 2, let the level gap grow so new players can’t compete and let the game slowly die as it loses players.

Back in the real world we are being faced with exactly the same challenges and there are four big reasons why young people may never get ahead financially.

The first reason is job opportunities.

Working a job is how most people build wealth. Even people who go on to be successful business owners normally get their start in a professional career where they can build up skills, gain connections and earn enough money to go out on their own. The average age of retirement has been slowly increasing in America for a long time now, and that isn’t just affecting people at the end of their careers it’s also effecting young people. If people have to work for longer before retiring, then there is less room at the top of the corporate ladder for young people to move up into.

Despite this, millennials make more money than any other generation did at their age, but they are less wealthy because to access most high paying jobs they have been forced to work in high cost of living cities. Here they are competing with senior professionals in the penultimate years of their careers but still aren’t quite ready to retire yet. These are people who were able to buy homes in these cities before they became unaffordable. When baby boomers were around the same age as millennials are today, they controlled 22% of the nation’s wealth, compared to just 7% controlled by millennials. It’s a chicken and egg scenario, older generations need wealth to retire, and younger generations need older generations to retire in order to build wealth.

Nobody wins but young people lose.

So it’s time to learn How Money Works to find out if you’re a young person if it’s too late for you to ever get ahead financially, or if you were born before 1980, to find out how long your children will be living at home.