Young people in the US are finding it increasingly difficult to build wealth through traditional means — MarketWatch
In the United States, Generation Z and younger millennials are finding it increasingly difficult to achieve financial stability through the traditional formula: get an education, find stable employment and buy a home. Rising living costs, the unaffordability of starter homes, consumer debt and risks to entry-level positions posed by the development of artificial intelligence are forcing young Americans to seek other ways to build capital, MarketWatch reports.
Eric Clark, 23, who graduated last year from the University of North Carolina at Charlotte with a business degree, said that after several months of searching, he accepted a sales job paying $50,000 a year. According to him, there was virtually no opportunity to earn commission because of company-set targets. He later became an account manager at a fintech company, but said he considered himself very lucky, as many of his peers face serious difficulties in the labor market.
Education and housing becoming less accessible
McKinsey partner and head of the McKinsey Institute for Economic Mobility JP Julien said that young people are entering an increasingly difficult labor market for entry-level positions amid the spread of AI, while also facing a large-scale affordability problem involving housing and other expenses. In one of the group’s studies, young people identified rising living costs as the most common obstacle to economic mobility and financial security as their main life aspiration.
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Michele Dickerson, a professor at the University of Texas at Austin School of Law, believes it is becoming increasingly difficult for young people with low and middle incomes to enter and remain in the middle class. She includes a college degree, stable employment, savings for short- and long-term goals, and homeownership among the traditional markers of that status. According to her, incomes are not keeping pace with many expenses, so earnings do not provide a sense of well-being if a person cannot buy a house or achieve other financial goals.
Side jobs and investments
In response to financial pressure, young Americans are renting housing for longer, more often living with their parents, seeking additional sources of income and starting to invest earlier. According to a 2026 LendingTree survey, about 43% of Generation Z members have a side job. More than half of them consider such work important for long-term financial security, while 35% plan to continue it until their main job provides a higher income.
According to the JPMorganChase Institute, in 2024, 37% of 25-year-olds had been transferring money to investment accounts since age 22, compared with 6% in 2015. At the same time, some young workers do not invest because they lack money or knowledge. Joseph C. Moore, author of the book “How to Get Rich in American History,” noted that regular investments in a diversified stock portfolio can be a useful way to save for retirement, but do not guarantee a financial breakthrough for those unable to set aside substantial sums.
