KERA's Think Why young adults can’t stop spending
May 8, 2025
Journalist Claire Lampen, who writes for The Cut, discusses the financial dilemmas faced by young adults today. With rising living costs, many Gen Z individuals are opting to splurge rather than save. Claire highlights the trend of side hustles as essential income sources and the emotional toll of managing relationships amidst financial pressures. The influence of social media on spending habits is also examined, revealing how comparison culture drives impulsive purchases and exacerbates financial stress.
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Sarah's Burden of Student Debt
- Sarah took on unexpected student debt after her parent lost their job during the financial crisis.
- She graduated owing $45,000 and struggled with payments on a $27,000 yearly income in New York.
Social Media Drives Overspending
- Social media creates pressure to display an extravagant life and feel fear of missing out.
- Younger adults often compare themselves to curated, unrealistic images, fueling anxiety and overspending.
Multiple Jobs to Survive Rising Costs
- Many millennials work multiple jobs to afford rising living costs, unlike prior generations.
- High salaries no longer reliably cover basic expenses like rent and groceries in expensive cities.