Why Young People Need Discounts: Understanding Financial Challenges for Gen Z and Millennials

In recent years, the financial challenges for young people have only increased. From soaring housing prices to rising inflation, young adults face significant obstacles in building stable lives. Discounts on essential and lifestyle products are becoming less of a perk and more of a necessity for this age group. This post explores some statistics around the struggles faced by young people today, particularly in areas of housing, employment, and daily expenses.

1. The Housing Crisis for Young Adults

The dream of owning a home seems increasingly out of reach for young people. Recent statistics highlight a significant disparity between the rising costs of housing and the average salaries of young adults.

• Home Ownership Rates: Homeownership rates for people under 30 have fallen drastically compared to previous generations. In the 1980s, approximately 55% of people under 30 owned a home. Today, that number has dropped to below 35%.
• Rising Rent Costs: For those not yet able to buy a home, rent is another challenge. In the last decade, rental prices have risen by over 30%, with young people spending up to 50% of their income on rent alone.

Average Homeownership Rates by Age Group Over Time

2. The Impact of Inflation and Rising Living Costs

Inflation has increased the cost of living across the board, disproportionately affecting young adults who are still establishing their careers and savings.

• Essential Goods Price Increases: The price of essential goods—like groceries and utilities—has risen faster than wages. For instance, food prices have increased by over 20% in recent years, while the average salary has only grown by around 10%.
• Debt Accumulation: Many young people are now relying on credit or loans to cover these essential costs, with student debt still looming large. Almost 70% of Gen Z and Millennials report that they have some form of debt, making it even harder to save for future goals.

Comparative Inflation Rates and Wage Growth for Essential Goods vs. Wages Over the Past Decade

3. Employment and Wage Stagnation

Although employment opportunities have expanded, many young people find themselves in lower-wage jobs with limited growth potential. This disparity between opportunity and compensation creates additional financial pressure.

• Wage Stagnation: Despite increased productivity, wage growth has remained flat for many entry-level roles. The median income for people under 30 has grown by only 2% over the last decade, far behind the rate of inflation.
• Job Insecurity: The gig economy, while offering flexibility, often lacks benefits and stability. As a result, around 40% of young people are in jobs that are either part-time, freelance, or otherwise lack long-term security.

Wage Growth for Young Adults Compared to Inflation and Cost of Living Index

4. The Role of Discounts in Alleviating Financial Pressure

Discounts on products and services allow young adults to manage their limited budgets better, helping them access essentials, career-focused resources, and lifestyle products without straining finances. Offering discounts is more than just a promotional strategy—it’s a way to support the generation facing some of the most challenging economic hurdles in decades.

Conclusion
Understanding the financial struggles of today’s youth provides context to why discounts are essential. For brands, these offerings can foster a loyal customer base that appreciates the support during challenging times. And for young adults, discounts make life’s essentials a bit more accessible, allowing them to allocate resources toward their goals.

At Thrive, we understand the unique financial challenges faced by young people today. Rising costs, stagnant wages, and a tough housing market make it more difficult than ever for young adults to reach their financial goals. This is why we created Thrive—to provide exclusive youth discounts that make everyday essentials and lifestyle products more accessible. With our platform, you’ll find discounts tailored to help you save on everything from fashion and technology to fitness and travel. Thrive’s goal is simple: to support young people as they build their futures, one discount at a time.