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It’s been a long and wonderful journey. I have nothing to complain about, but I was reading an article that triggered a thought. Did I have it easier simply because of the years in which I grew up? Are things that much harder now? They are very different for sure.
Was I just fortunate even when things weren’t so great after all?
I grew up in an apartment with my parents and two sisters. My father was a car salesman, my mother a homemaker. They truly lived paycheck to paycheck. There were no investments of any kind and very modest savings as I learned many years later.
I graduated high school in 1961 and immediately started looking for a job, my first one lasted a week and I was fired. In November that year I was hired as a mail boy by the Company I would work for until 2010.
Four months later I was laid off, but luckily was given a clerks job in employee benefits. I was a clerk until returning from the army in 1969 when I was made a supervisor – super clerk. I didn’t obtain a college degree until 1978.
I lived at home those years before 1969 and was not required to pay rent. I was the lowest paid worker in the company when I started, $1.49 an hour – about $15.50 today, still pretty low on the pay scale.
Life was pretty boring until 1968. I spent my free time bowling and driving in sports car rallies. In February 1968 I finally got the courage to ask this girl out whom I had worked with via the phone for several years.
February 1968-first date, May 1968-called to active duty in the army, June 1968-became engaged, December 1968-married, September 1969 back to my old job, July 1970-first child (Connie stopped working), spring 1971 bought first house for $29,000, October 1971-second child, etc., etc.
We couldn’t afford a nicer house that was $35,000 so we settled for a smaller, much older one we could.
On the plus side I never lost a job again and I did receive a raise every year albeit for many years about $20 to $30 a month. When I got out of the army in 1969 we decided if I was earning $135 a week we could buy furniture for our apartment.
Except for the first year or so we have been a one income family although Connie did work very part time for her doctor for a few years when the children were in high school and college-at the same time.
I never had students loans-for myself, but used several hundred thousand dollars for our children. We paid for four weddings too.
I worked as much overtime as possible in the early years, went to school at night for nine years and had some form of side job during most of our years raising children. We never paid credit card interest. If we could not pay, we did without.
Over several decades I received promotions until 2006 when I finally reached my goal of Vice President and the compensation that went with it.
We and many others coped with mandatory military service, stock market crashes, oil embargoes and double digit inflation.
We are still married-to the same person-after 56 years and we never had a significant difference about money all those years. Even when I groused at a large purchase I eventually saw the light, like buying a new water heater.
Now here I am at 81. I have no idea of how things are for a 30 year old. I know they must be different, but are they all that much worse?
How much different because of different ideas about and priorities with spending money, needs and wants, relationships, whatever?
My husband, siblings (all female), and I range in age from 36 to 49. I would say that we haven’t had the employment stability enjoyed by previous generations, but we have been able to claw our way to financial stability through living below our means and one spouse supporting the other during a period of growth or education. However, even my parents did not enjoy employment stability, so not every Boomer can attest to that, to be sure. I think you have to be very tactical these days, and the landscape is ever-evolving! I feel like the ability of parents to both earn a living can be critical to family financial stability. It certainly comes with higher costs in terms of child care, transportation, and other items, all of which drive up the cost of living for everyone! My husband and I have always tried to live below our means and save for the future (and emergencies), albiet not always successfully. Our chosen location, vehicles, and housing–while perfectly fine!–have never been gold plated. If they had been we would have definitely struggled more than we have.
These days and for many years two incomes is a necessity for most families. Society created that need with ever increasing lifestyle demands which I find very sad.
Does “the ever increasing lifestyle demands” include a new Mercedes?
Not for an 80 year old who waited until age 70 for his first one after all family obligations were met. But generally yes.
There are no age boundaries for the poor taste of conspicuous consumption.
Would you feel better if I bought a Jeep Grand Cherokee?
No— what I object to is the fact that you have made sure that everyone who reads this blog knows that you bought the Mercedes. That to me is the definition of conspicuous consumption.
That’s your problem, not mine. If you read what I wrote from the beginning you will see that see that when I mention it, there is a broader point, not bragging.
Plus, while Mercedes is a luxury brand, the cost of different models varies greatly, many cost no more than. a Toyota, or Jeep and many such as mine, no more than many pickup trucks which are the largest selling vehicle in the U.S. Perception is not always reality.
‘Mercedes employs 13000 Americans in the U.S. plus there are 30,000 working in dealerships. They rely on conspicuous consumption even when you get a discount off the sticker price.
The Toyota RAV4 is now the largest selling vehicle surpassing the Ford F-150. Just came out a few weeks ago.
No, keep the Mercedes, the Grand Cherokees are pedestrian death machines
I think your comment is unkind. Chris
One factor making things harder today – the high cost of getting a bachelor’s degree, even from an in-state, public university.
I think many of us discussing this are unfortunately anchored in a past reality of what the country looked like as a young person. The America of 50 years ago doesn’t exist anymore, and it’s certainly not coming back. We can harp on traditional values, and hard work, and making your own luck, but truthfully many of us have benefitted from much outside of our control, chiefly from massive investment gains, which by definition were not earned, and really reflect the hard work of other people from which we benefit. How many people your age do you know who didn’t make it to retirement? Who couldn’t afford a house? Who lost it all in the dot com crash, or the great recession, or even as recently as the pandemic? We could do with a little perspective taking here. Much of the financial instability we see today is a mix of factors, some of which include higher standards of living, but also things like financialization, policy decisions, and global affairs. It is so much more complicated than the price of a house now versus then, or simply just working hard. People work hard today, people worked hard back then. It doesn’t mean all (or even most) of them were rewarded.
This little anecdote will illustrate why it is harder today, especially in High Cost of Living areas, to get ahead. I was at the local Kroger grocery last week and noticed that the price for a pack of 10 soft-top cookies had increased 20% and went over to speak to a young woman who worked in the store bakery. She seemed sharp, and the conversation turned into a discussion of how she was coping with these inflationary times.
She said that Kroger was paying her $24/hour which I mentally calculated to be around $50k/year. When I asked about that number she said no, that she never made more than $35k because Kroger wouldn’t let her get to 40 hours a week. This hours management kept her from some benefits and forced her to room with two other women in order to cover her portion of their 2br apartment rent. She had been with Kroger for 5 years. She said that she was 27 and looking for other work. Housing is very expensive here. I suggested that check into working at Costco where employees are much happier.
Not sure that illustrates your point. As you suggested she needs a better job/employer.
But not everyone gets to have a better job, or a better employer, or it is too late when they finally do. I do absolutely see your point (I’m witnessing it firsthand with my own coworkers now) but the nature of our society means that not everyone gets the chance.
RQ:
You are 6 years older than me, but we share a number of experiences.
I too grew up in an apartment, called Military quarters. My dad was career military, so there were never any “layoffs” or plans closings in our lives. We even managed to miss the typical relocation every three years, typical of most military families, because when my father reenlisted every 3-6 years, he also opted for “current duty station.” I lived in Germany from age 3 to age 15.
I graduated High School in 1968 and joined the military. I did it to honor my older brother and my dad. I joined to become a helicopter pilot, but my vision precluded that dream. I served in the Signal Corp and served in Viet Nam from 1969-1970. My older brother PFC Justin M Lynch, was KIA n Viet Nam in 1965. His name is on Panel 3E Line 25 Position 1 of the Viet Nam Memorial in DC.
Like you, I attended college while working full time. While in college, I worked at General Motors Acceptance…GM’s auto financing arm. That led me to a 28 year career in finance, but unlike you, not for one firm. I started at GMAC, but also worked for Ford Motor Company Chrysler, Nissan, Mitsubishi, and back to Ford at the end of my first career. I had two additional career, including self employment as a Nationwide Insurance & Financial Services Agency Owner for almost 110 years and a 15 year career as a college professor…teaching…you guessed it Financial and Financial Services. All told, I worked and paid taxes for 57 years, before retiring in January 2024.
Would I prefer to have been in one place, working for one firm, for 40-50 years? Not really, but it would have provided a much easier life. I had two purposes in my working lifetime…Provide for and Protect my family, and if that meant changing companies, and moving across country to do better financially, I did it.
Like you, my wife worked very early in our marriage, for the first 2-3 years. After that, she was a stay at home mom, raising our two kids. We’ve lived in 9 different states and owned 9 different homes in our 50 years together so far. Our first home was a 3 BR 1 3/4 bath, with a Car Port. It was brick. We paid $19,000 for it in 1975 and I believe the mortgage was 11-12%. We built our retirement home in 2018 on 6 acres of wooded land, 2 acres of which are cleared and our home cost @360,000. It has no mortgage payment and we are totally debt free.
My son served in the military for 4 years, serving in Iraq 2004-2005. He graduated from college in 2009. My daughter earned her Bachelor’s in 2002 and her Master’s in 2022. Both are married, but neither has provided us grandchildren. Neither child had student loans upon graduation.
My son, as a result of numerous poor decisions and certain personality traits, has not been as financial successful as I had hoped for, as he was capable of being. I have learned however, you cannot care more about a person’s situation than they do, and I will leave him to solve his issues. He is very fortunate to have a spouse who supports him and parents who have not abandoned him.
My daughter is 180 Degree opposite. She and her husband are doing well, and if they take the financial advice I gave them, they should do just fine.
I have seen the articles and all the examples of how hard Gen X and Millennials have it today, and some of those articles have validity. Most, however, compare apples and oranges, and display a “woe is me” mentality. They discuss “work life balance” and the difficulties they have in buying a home, etc. My first home was @1350 sq ft. It was not the McMansion many younger people think they deserve and “need.” My first job paid $1.65 an hour. I served in the US Army, reaching the grade of Sp/5 E-5, and earned $255 a month, including combat pay, I didn’t expect to start my first job out of college as a VP making $100K either.
I don’t want to come off as a “Boomer,” the currently popular perforative for those in my age cohort, but there is something to say in favor of hard work, persistence, and managing expectations.
The one area I do believe younger folks are at a disadvantage today is in relationships. The lack of traditional values, the acceptance of perversion being considered “normal,” and the absolute abandonment of personal responsibility is absolutely not conducive for long lasting, successful marriages.
Add to that the fact that 80% of marriages today are filed for by the woman, and family courts actually punish fathers as a matter of policy, and the future for the nuclear family looks very dark.
Add to that the choice of close to 50% of younger couple, who are married, not to have children and you have to wonder about the future of the Social Security System itself. I find that sort of ironic, as well, since the same group worried that “…it won’t be there for us…” is bringing to bear the circumstances making that a self fulfilling prophecy.
So do our kids have it harder than we did? They believe they do, and as Henry Ford said, IF you can or you think you can’t, You Are Right!”
I wouldn’t look to Henry Ford for words of inspiration since he was an antisemite.
I think you meant to say he held “traditional values.”
Well said. Ford was right.
Young adults spend a LOT on electronics today, whereas it wasn’t an option when we were in our 20s and 30s. Subscriptions for sports, movies and gaming…monthly internet and phone/watch charges…laptops, ipads, earbuds, multiple TVs…can add up to hundreds/month.
Distractions can be expensive
The thing that strikes me is not that the choices the Quinns made to have a single earner household etc but the contrast with a 21st century world where property inflation has been driven by an expectation that households are dual income and the fact that any single earner family is competing to buy against those with double the earning power.
There is a great deal of fortune in the RDQ story. Avoiding active combat, retaining a role in the same corporate for decades ( which must have been relatively benevolent to retain him in the early years), no major health or family crises, no early capital spent on IVF cycles, no forced work relocation away from support networks, the golden era of corporate perks including DB pensions.
Note I’m not saying they didn’t work hard – I don’t know how anyone has capacity for meaningful side gigs on top of demanding corporate jobs. And the more I hear about it the more I reflect that it is so very different from the experiences, travel, living in different places, rejigging work intellectually etc that has been my life.
But I do think it anachronistic for anyone reflecting on life from the run and done end of the race track to expect that anyone in the starting yards to be running the same type of race. Some of course will smash it far faster than any old timer ( those vested stock options in the unicorn startups) while I think others will struggle to keep a finishing pace as they jump from gig to gig with stumbles along the way. What I think is probably less possible is the “salaryman” slow and steady wins the race. Too risky in a ruthless hire and fire world to be a casualty at the wrong time.
Very fortunate indeed as i have often acknowledged. Life is very different today.
You have to approach things differently, like financial priorities, but there is still plenty of opportunity. You have to do what is necessary sometimes.
One of my sons works full time in a good job, but has a side home improvement business he is proud of.
Another, because of serious illness, his wife can’t work and life decisions, in addition to his job he drives a school bus. Both have degrees, one a masters.
Good post Dick. Your life was very similar to mine. I graduated from HS in 1962, went to business college for 1.5 years and then entered the work force. I worked for an airline for 14 years and most of that time was in IT. Colleges were not producing may IT grads back then. The airline administered tests to determine those suitable for IT and I must have done well because I was promoted to systems programmer in 1969. We had a large, very sophisticated computer center, and most of us did not have 4 year degrees. I went back to college for 6 years while working with a small family, and earned a BS in Accounting which helped me land IT management jobs. The degree really made a difference in my career both from a management and finance perspective.
I was also appreciative of how well my wife Judy handled our children and home while I was going to school and working full time. I remember studying at the kitchen table many times while she would be with our 5 and 2 year old children in our den. She was able to keep them quiet which I thought was quite a feat. I feel like my academic and career success was as much attributable to her as me.
Every time I read Quinn’s life story — and it’s been several times— I think his wife must be a saint! She provided all the “free work” that allowed him to work the overtime and side gigs as well as enjoy the golf games, fancy lunches, and trips. A lot of couples today embrace a more egalitarian split of career and home work. I think that’s harder but may be more satisfying to both partners.
Connie had no desire to work after we had children. She was and is devoted to her children and now grandchildren. Is that a strange concept?
She did a tremendous amount of volunteer work in the schools throughout the children’s school years. Something working mothers can’t do.
IMO she did the hardest and most important job there is.
The OT was in the early years, the gigs were all from home. I didn’t start playing golf until I was 57 and until the last four years it was all during working hours.
When the children were old enough she accompanied me on all my trips around the country and we had some amazing times.
Satisfying is doing what you most like doing, why can’t that be a mother and homemaker?
PS Since I retired I do all the grocery shopping and about 90% of the cooking.
You have a very traditional marriage relationship and it’s good you’re both satisfied. But think about the chronology. Your wife graduated from high school in the 1950s— height of June Cleaver time. The 1960s saw the rise of the feminist movement. Women wanted both motherhood and a career. And both ARE possible, though it wasn’t easy. Society changed slowly. Also we still did volunteer at our at kid’s schools, soccer games, car pools, etc. The difference is that both my husband and I split that effort.
I too am devoted to my children and granddaughter. They’re all amazing in one way or another. But I’ve also had the satisfaction of having my research published in one of the top journals in my field, taught in Denmark and the Czech Republic, and enjoyed the success of students that I’ve mentored.
You asked whether things were harder today than during your earlier life. All the other responders have been men—and they’ve focused on things like housing costs. Fair enough. But I think women’s changed expectations should also be considered.
I don’t find this any more judgmental than the original post…in fact, I find it less so. And the point about the changed expectations of women is an important, and often overlook, perspective.
Wow, how about going easy on the judgementalism.
This could go on, but let’s leave it at I disagree and you disagree.
Fine with me.
I do think it’s harder for younger folks to buy their first home today than when I did in 1994, and I don’t see that changing any time soon.
I bought three houses in my life. None of the mortgage rates were less than 9-1/2 % so that isn’t it. but more important houses are larger, with more non necessity add ons and my perception is settling for far less than you desire is out of fashion. We never had walk in closets, a family room, finished basement or even two car garage, so you may be right. Given today’s standards it probably is harder.
Dick, have you ever compared the increase in value of your home against general inflation? That would be an interesting. Data point.
What I’m getting at here is the fact that the median home price is now about 6X the median income, whereas in 1985 that ratio was about 3.5X thus making it much harder for people to afford a home. I never wanted to be house poor and the highest I ever paid for a home was about 2.3 times my income. That allowed me to save more for college expenses for my 4 kids, retirement, and the cars. At one point I owned six cars.
That is a revealing statistic Patrick. I arbitrarily looked at 1975, because that was 4 years after my high school graduation. US median home price was $39,300, median size 1,660 sq. ft., median household income was $13,720. In 2023, the numbers are $422,550, 2514 sq. ft., $80,610.
The ratio of price /income rose from 2.86X to 5.24X
But houses also increased in size by a factor of 1.5X
If I increase the square footage of the home in 1975 to 2514 sq. ft., the price/income ratio then becomes 4.3
So it seems that the median price relative to median income has increased partly due to the increase in size of homes, and partly due to price inflation.
I agree with your logic on how much to spend on a home as did much the same.
Well, in 1972, my income was $12,000. The year before we bought a small in need of repair 1918 house for $29,000. The mortgage rate was 9-1/2% and we needed 20% downpayment. We couldn’t afford a little younger house selling for $35,000, nearly 3x my income.
The other factor we need to consider is lower mortgage rates. Thanks to the resulting lower monthly payments per $100,000 borrowed, folks can afford to pay more today than they did 50 years ago, so it isn’t surprising that home prices have been bid up.
Is that not lifestyle creep? Afford to pay versus prudent to spend.
We watch HGTV regularly and I get a kick out how many homebuyers rationalize spending more than their “budget” and how many amenities are called necessities. The need for a giant bathroom is my favorite or a media room or five bedrooms and three baths when they don’t have kids yet. 🤑
Agreed – nice analysis. In my comment below I gave actual prices for the same home from 1965 to 2021. That way it eliminates differences in size and location. That house rose in value 2.5 times greater than general inflation. That was for a 56 year old house. Newer homes of similar size in that area would easily claim $150 – $250 K more.
Great analysis. Thank you.
Comparing the particulars won’t really answer your question(s).
Mainly the stickiness of wages in the price-wage inflation spiral will make it harder for lower level earners to keep up with some standard of living items over time.
But we’ve seen a massive explosion in standard of living benchmarks. I don’t think any other 100 year period has seen the level of life improvement like the last one. Globally, I think globalization and the development of the consumer economy has lifted a greater percentage of people in a shorter time than anyone had ever considered possible.
What we almost always hear is people wanting the cheaper houses, lower cost goods, abundant jobs, without the disease, wars, and a generally harder life that the past had to offer. But as I started out with, that wage stickiness, it absolutely creates greater burdens over time.
I don’t know if things are “harder”.
But, based on my children’s experiences thing sure are different.
I think ones willingness and drive to acquire additional skills and/or education as tools to advance are similar today. What seems to be different now is the ability accomplish advancement with the same employer.
You just couldn’t help mentioning the new water heater, could you Quinn?
Dick, 2 things struck me about your story. First, that you were able to get a job with a HS degree for a company that had enough positions to allow a career path for someone willing to work and learn and aspire. When I started at GE there were positions for “math techs”, people with mathematical aptitude but not engineering training. They did work that computers do today. The good ones learned on the job and assumed lead engineering positions without a degree. That would never happen today.
You worked continuously for the same firm for 49 years, in the same geographic region. That’s an amazing string of employment stability. I was able to hang on for 31 years without a layoff. During that time we were sold 3 times, and merged once. I survived 3 plant closures. My job moved 65 miles, then 3000 miles, then 400 miles. I was able to stay employed, and grow my career with a lot of travel, flexibility, luck, and help.
I’ve seen studies that showed that housing inflation since the 1960s is about 2.4 times greater than general inflation. We sold our suburban PA house in March, 2021 for $475,000. It was originally purchased by my parents in September, 1965 for $22,000. Had the value risen with inflation, it would have been worth about $185,000 in 2021.
Of course comparing things across generations is very difficult. Times and conditions are so different, Many things are better, some are worse, and some are the same. We all get one life to live. We should try to make the best of it.
Great observations and examples, Rick. You supported your concluding paragraph well. And I had never heard of “math techs” before.
This is a true story:
One morning at church the pastor brought all the children up to the front pew and put all the blue eyed kids on one side and all the brown eyes on the other of the aisle.
The Rev. proceeded to give M&Ms to all the blue eyed kids, and none the brown eyed children.
Then asked “Is this fair?”
One little blue eyed child said “NO! It is not fair!”
In wonder that the intended lesson was received by such a young innocent child the pastor asked ”Why?”
Child: “Because she got three M&M’s and I only got two”
I’d say that’s a good example of blocking opportunity.
We’re once again firmly in the land of anecdotal evidence. So, while we’re here, why don’t you tell us whether your four children’s lives have been easier than yours? And as a reality check on what you think, why don’t you have your kids review your answer?
My children are in their 50s It is not a matter of life being easier, but are the obstacles greater and opportunities less today. Life is never easy.
My children all had the same opportunities and are now in different places, based mostly on decision they made and life events beyond their control.
They certainly started out with far greater opportunities than I had, but that was 30 years ago.