10 Ways the Cost of Living Has Increased Since the Boomer Era
Life today looks vastly different than it did during the boomer era — and not just in terms of technology or fashion. Within the last few decades, the cost of living has skyrocketed in ways that would make our ancestors’ jaws drop. From housing and education to healthcare and even groceries, the financial landscape has shifted dramatically, leaving many people struggling to make ends meet — let alone splurge on luxuries like traveling or buying a home (yes, homeownership is a far-fetched dream for many of us now). Here are 10 areas in which the cost of living has ballooned since the boomer era.
1. College Tuition
In the 1960s and ‘70s, a year of college tuition cost a fraction of what it does today. Adjusted for inflation, tuition at public universities has increased by a staggering 169% since the 1980s, while private schools have seen even steeper hikes. This has left many students drowning in debt, with the average graduate now owing around $29,000 in student loans, according to U.S. News. For boomers, a part-time job alone could cover tuition costs; today, it barely makes a dent.
2. Health Care
While boomers could count on having access to health care, today it’s a luxury not everyone can afford. In recent years, medical costs have risen dramatically, with premiums, deductibles, and out-of-pocket expenses far outpacing wages and inflation. In the 1960s, health care spending accounted for about 5% of the average family’s income; it’s now closer to 20%. Even with insurance, many families face crippling medical bills, making health care one of the leading causes of bankruptcy in the U.S.
3. Childcare
The cost of childcare has become a financial burden for many families, with many parents being forced to choose between advancing their educations and careers or staying home to care for the kids. In some cities, full-time daycare can cost nearly $40,000 per year — more than in-state college tuition. For single parents or low-income families, this expense can be devastating. While boomers could often rely on affordable or family-based childcare, that’s since vanished into thin air.
4. Housing
As housing prices continue to outpace wage growth, the dream of homeownership has become increasingly out of reach for many. Just take a look at these numbers: In the 1980s, the average cost of a new home was $68,000; today, it’s closer to $400,000 ($426,000 to be exact). Rising interest rates and a lack of affordable housing have also made it even more challenging for younger generations to buy a home — or just have savings in general.
5. Groceries
The cost of groceries has also risen, with staples like milk, bread, and eggs running up much higher tabs than they did in the past. Inflation, supply chain issues, and corporate price hikes have all contributed to the squeeze on household budgets. For families already struggling with other expenses like student loans and medical debt, the rising cost of food can feel crippling.
6. Transportation
From gas prices to car payments, just getting to and fro has become more expensive. The average price of a new car has nearly doubled since the 1980s, and gas prices, while fluctuating, have trended upward over time. Public transportation costs have also risen, leaving many people with no affordable options to get around, especially if they don’t have the means to buy a car.
7. Retirement Savings
While Boomers could count on retiring comfortably at the age of 65, today’s workers face a lot more uncertainty. With stagnant wages and rising costs, saving for retirement has become a challenge for many. Pensions, which were common in the boomer era, have largely disappeared, leaving workers to rely on plans like 401(k)s and Social Security to plan for retirement.
8. Utilities and Energy Costs
The cost of keeping the lights on and the house warm has also gone up, with electricity, gas, and water bills all increasing over the years. Factors like climate change and aging infrastructure have driven up energy costs, putting additional strain on household budgets. For families already struggling with other expenses, these rising costs can be the breaking point.
9. Entertainment and Leisure
Even the cost of having fun has gone up, with everything from movie tickets to concert prices rising steeply. Streaming services, while convenient, add up quickly (not to mention Netflix having the audacity to jack up prices multiple times after gaining 18.9 million new users). For boomers, a night out was an affordable treat; today, it can be a budget-buster. Even things like dining out or getting drinks (raise your hand if you’re tired of these $20 cocktails) have become luxuries that not everyone can afford.
10. Insurance Premiums
Whether it’s health, auto, or home insurance, premiums have also skyrocketed over the years. For many families, insurance is now one of their largest monthly expenses, racking up hundreds or even thousands of dollars every year.