Since DW and I are parents of several Millennials, this is a constant discussion for us. But at the end of the day, we love our kids and they love us, so it is all good.
My personal observations:
- DW and I went to an Ivy League school whose cost (tuition + room + board) was around $6K when wen graduated in the late 70s. The school currently costs close to $60K. The cost has far outpaced inflation.
- One thing to consider, though, is not just the cost, but the availability of scholarships and non-loan financial aid. I believe it is much greater now, particularly for certain majors, than it was when we were in colleges. Schools like my alma mater will cover the full cost for admitted students if their household income is below a certain level - thought it is MUCH more competitive to get in now; 10-12% acceptance rate in the late 70s, now somewhere around 6-8% with more than twice as many applicants.
- There seems to have been an explosion in college majors, than, frankly I can't figure out how those who choose those major expect to earn money.
- My starting salary at Megacorp, in a technical engineer position in the late 70s, was around $16K My first apartment was a 1 bedroom with a kitchen/dining area, living room, and large walk-in closet was $350/month. That roughly equates (in CPI inflation ) to $52K salary and $1140/month today. So perhaps we did have an advantage when it came to housing and living on our own.
- There were fewer "personal" things to spend on. No cellphone, enough free broadcast TV so that cable wasn't needed, no internet, no personal computers (which when they first came out were relatively more expensive than they are today). It gets back to "'want do you really need" vs. "what do you want".
- Maybe, being the children of immigrants and minorities, we were more "hungry" to succeed, do well, and be independent. In college we worked for better grades and majored in subjects that we did not necessarily "like" but knew there were good job/career prospects. At our school we ran into more than few "connected" classmates who were there just to get their degree and didn't care about the major or grades, since their job prospects where already taken care of based on their name and/or wealth connections. This attitude baffled us at the time.
- While the traditional "join a company, work for them for 30 years, get a pension" stereotype is pretty much gone, overall there seem to be more employment options available to those willing to seek what is needed vs. what they want to do. Honestly, whenever I hear someone describe their main job as a "blogger", I have to smirk. My observation is that folks perhaps are less patient with taking order from others, and combined with less civility towards authority more people want to work at what they desire - even if that doesn't provide the opportunity to save for the future. My personal example: I was a DJ at my college radio station for many years, and even after I graduated as a hobby. A couple of years after starting at Megacorp was contacted by a radio station who heard my air check and was interested in hiring me. My desire was certainly to be on the radio - but for financial reasons I knew Megacorp and the IT industry at the time would offer more long-term opportunity with less financial risk.
- A global economy, now brings challenges and opportunities. Many jobs pay less due to increase global supply (for example, programmer). However, work opportunities are now global, both in employment and, if you strike out on your own, potential clients.