How America created a Damaged Generation destined to go Broke

Table of Contents

Stats and Facts that Keep People Broke

Every generation swears by specific brands. From Millennials to their bitter rivals, baby boomers, to the newest rivals Gen Z, and forgotten Gen X.

The king of media today is likely DISNEY with NETFLIX bowing out, however, the true ozone destroyer and landfill regulator is Amazon. According to a Morning Consult study, we all can’t stop the constant easy shipments to our homes.

According to the Consumer Expenditure of 2018 (updated September 2019), the average household income (pre-tax) in the United States hovers around $78,635, with average expenses of $61,224. After taxes, that’s pretty much breakeven for most people. But what if your household isn’t keeping up?

Going Beyond Average Indebtedness

$137,063 is the average debt that an American Household is carrying from year to year, and it’s rising.

The average personal debt (excluding mortgage) by generation: Gen Z & younger millennials (ages 18-24): $22,000; Older millennials (ages 25-34): $42,000; Gen X (ages 35-49): $39,000; and, Baby boomers (age 50+): $36,000. Ever wonder where you stand? ⇠Free Personal Capital Referral, Get $20 Amazon Bucks for completion.

According to 2016 NerdWallet statistics, the average American household carries $16,061 in credit card debt. There are many carrying up to 10 credit cards with balances. Many of whom don’t know what their annual total interest fees are. Do you know?

So when did it all get this bad?

Many are dealing with a new reality. All that glittered wasn’t all gold. Travel is the new materialism. And the closet is filled with brands of fast fashion that are now going out of business. Our idea of stuff and experiences are supported by the power of credit.

This is leaving most millennials struggling with unset depression, loneliness, and a host of other mental issues. At this rate, mental health is the new materialism.

I’m not even sure if millennials are ready and even able to age by 50, let alone retire.

Time is fair in its cruelty when it comes to savings and investments. There is a difference between 50+ and stable vs 50+ and struggling.

The Rise of Consumerism and Branding Power

Companies work hard for consumer attention and market shares. This is why there is a Starbucks or Dunking Donuts on almost every city block in the Northeast. There are ADs on every Youtube video and/or streaming service. Even Ads on SoundCloud.

Over the last five years, Coca–Cola has spent an average of 3.8 billion dollars a year on advertising worldwide. Spending in the United States accounts for over 20 percent of that cost, totaling $899 million U.S. dollars in 2017. And that’s a recognizable brand for decades. Other companies are throwing big bucks into their Ad campaigns too.

The best brands have the best slogan (instantly recognizable jingles or saying), for example:

Allstate – You’re in good hands
American Express – Don’t leave home without it
Campbell’s Soup – Mmm, mmm good!
De Beers – A diamond is forever
Dunkin’ Donuts – America runs on Dunkin’
Energizer – It keeps going… and going… and going
Frosted Flakes – They’re grrrrrrreat!
Gatorade – Is it in you?
Kay Jewelers – Every kiss begins with Kay
McDonald’s – I’m lovin’ it
Rice Krispies – Snap! Crackle! Pop!
Skittles – Taste the rainbow
Sprite – Obey your thirst
Trix Cereal – Trix are for kids
Verizon Mobile – Can you hear me now?

So What Got Us? (The Cause)

We were the first true generation who experienced the advent of CREDIT CARDS as well as long segments of television viewership. The one slogan that defined our financial troubles since the 90s and onward:

VISA, everywhere you want to be. I bet you heard the voice in your head. And I bet you repeated it for good measure.

On top of Burger King’s Have It Your Way, Nike’s Just Do It, CapitalOne’s What’s in your wallet?” we were doomed to fail. The slogans are extremely popular and can be recalled with little thought like the freecreditreport.com jingle. These are not just catchy, repeated enough, they become low-grade societal hypnosis.

Once ingrained, they are pretty hard to forget. Eventually, modern storytellers (or musical artists) sing and translate these ideas into imagery that support the general narrative of spending until you look Rich and Affluent. Drake’s You Only Live Once (YOLO) all put affirms the idea of living your best life today with no idea or earthly clue about the imminent tomorrow. Kanye’s Can’t Tell Me Nothing bolstered our resolve; we were truly unstoppable swag surfers. *I love both songs wholeheartedly.

This is not a research paper.

This is not a sharp critique of how anyone particularly lives their life. Just a reminder of how much repetition goes into our own mind that creates our spending impulses which chauffeurs us right into debt and depression. Begs the question: