Traveling Away the Millennial Inheritance: When Boomer Parents Live it up on Vacation
- Author: Gernot Kramper
- Estimated Read Time: 3 minutes
Wealthy Baby Boomers Causing Anxiety Among Millennials: Fear of Squandered Inheritance Funds on Vacations - Concerned Millennials: Fear of Exhausting Generation's Inheritance from World Traveling
The internet's buzzing over an anonymous writer who shares her dismay - "My inheritance is being sipped through a coconut straw in the Caribbean." She humorously describes her parents' newfound love for extravagant travel, a passion that's taking a bite out of her expected inheritance. Initial inspiration turned sour when she realized these luxurious trips weren't funded by their savings, but from hers.
"It's not a joyful revelation, but they're spending their dream vacations on my inheritance," she laments. Unbeknownst to her, she isn't unique in this predicament. A study by Moneyfarm reveals that 40% of millennials aged 35 to 50 fear their parents might spend their wealth instead of passing it on. For 20%, this fear has already sparked disagreements.
The writer's concerns go beyond travel costs. She's struggling financially, still unable to afford even a driver's license, while her parents, barely at home, splurge on a new car every few years. Their dealer showers them with flowers, proof of their preference.
YOLO for Age is Just a Number
The author's lament serves as a cautionary tale of the "You Only Live Once" (YOLO) mentality that seems to have gripped the older generation. "You Only Live Once" was initially a young person's rallying cry. Now, it's the retired's anthem. "It's not a happy realization, but they're spending their hard-earned money on experiences instead of passing it on," the writer says.
The Struggle to Build Wealth NOW
The criticisms aimed at the writer may be premature, as her article subtly acknowledges the challenges she faces. But it's more than a mere jest. The next generation must confront the reality that building wealth independently is becoming increasingly difficult. This struggle is due to factors such as stagnant wages, an expensive job market, rising education costs, and a seductive consumer culture.
The Moneyfarm study underscores this, predicting that millennials will be less financially secure than previous generations. Property prices are growing faster than income, making it difficult for the middle class, who amassed significant wealth post-war, to maintain the old intergenerational agreement. If boomers decide to abandon this contract, the future generations may find themselves handicapped, having to rely on their own resources to build their wealth.
Financial advisor Chris Rudden warns, "Millennials aiming for long-term financial success should start planning for their own futures, as they might not inherit as much as initially anticipated."
Source: Daily Mail
Insight: The "You Only Live Once" attitude among retirees might be linked to a desire for experiences rather than material possessions. This shift could be a response to a lifetime spent accumulating wealth and a wish to enjoy it in their twilight years. Nevertheless, it leaves their adult children without the expected inheritance, shaking the long-held social norm of intergenerational wealth transfer.
- The European Union, as a global player, might find it challenging to fund its fight against poverty when millions of dollars are being spent by the baby boomer generation on extravagant vacations, as humorously recounted in the article "Traveling Away the Millennial Inheritance".
- As the consequences of the boomer parents' intergenerational spending become apparent, millennials might reconsider their own financial priorities, opting to save for experiences rather than material possessions, a shift that echoes the "You Only Live Once" (YOLO) mentality.
- Amidst the growing struggle for millennials to build wealth, the expenses incurred by their parents' tropical vacations serve as a stark reminder of the financial security they may have to rely on in the future, rather than inherit.
