The Simple Math Behind Why Boomers Think Giving Up Daily Coffee Can Help Younger Generations Buy Homes
progressman | Canva Content creator Nick Powers took to TikTok to shed light on a common misunderstanding between older and younger generations about money, spending habits, and the skyrocketing cost of living.
One recurring piece of advice from older generations is the belief that small luxuries — like a daily Starbucks coffee — are draining young people's finances and preventing them from buying homes. But as Powers explained, this perspective overlooks a simple but crucial fact: It’s not the cost of coffee that’s the problem — it’s the soaring price of necessities, particularly housing.
The man explained how the real problem wasn't daily coffee expenses — it’s housing costs
Powers dropped some serious knowledge about the generational misunderstanding older people have about young folks and their coffee habits. Spoiler alert: It’s not about the coffee, folks — it’s about the cost of living.
According to Powers, part of the reason older generations think young people spend too much is that they don't realize how much the cost of "necessities" has shifted.
The man gave specific examples of how the cost of living has changed since the time Boomers became first-time homebuyers
For instance, in the 1950s, you could buy a TV for $495, which — here’s the kicker — was about a year’s worth of median rent. In today’s world? "You could buy a TV for $99," Powers said, but to match one month’s rent, you'd need to buy a new TV every month for almost two years.
So, yeah, that new flat-screen might be cheap, but rent? Not so much. Powers dived deeper into this misunderstanding with the ultimate coffee example.
Back in the ‘90s, a cup of Starbucks coffee cost under $4. If you were a three-cups-a-day kind of person (a real commitment to caffeine, right?), cutting that out could actually save you enough to pay rent. That certainly puts a whole new spin on why Boomers seem stuck on the notion that budgeting and saving are so simple.
Fast forward to today, though, and “if you want to cut out Starbucks to pay rent, you have to buy 10 cups of the most expensive coffee every single day." And yes, that’s every day — no weekends off.
So, unless you're a coffee-loving superhuman capable of downing 10 ventis daily, this "solution" just isn’t going to cut it.
Luxuries like a daily coffee aren't the cause of young people's financial hardships
BongkarnGraphic / Shutterstock
But why do older people seem to think cutting out coffee will solve all the problems? Powers offers a simple explanation: Older generations think luxuries like coffee are the root of young people’s financial troubles.
They don’t get that young folks are just trying to find small joys in a world that’s increasingly expensive. “Young people don’t have a spending problem,” Powers said. “It literally doesn’t matter if they buy one cup of Starbucks coffee. That’s not going to change their financial situation.”
He's not wrong. A CNBC survey from early 2024 found that although 42% of 18-34-year-olds are earning more in salary today, nearly half of those said they wouldn't have enough saved to cover one month of expenses should they suddenly become unemployed.
It’s not the lattes, people — it’s the housing market. Or the fact that young people are now living in a world where homeownership feels like winning the lottery. Or, as Powers put it, “Luxuries are so much cheaper now. It’s the cost of living that’s expensive.”
In fact, even furniture is cheaper. You could probably furnish an entire home for less than eight months of rent. But even that doesn’t fix the core problem: the runaway costs of housing, which are making it nearly impossible for young people to keep up.
So, if you’re thinking about telling a Millennial or Gen-Zer to cut back on their coffee, and that’ll help them buy a house, Powers had a suggestion: maybe try cutting back on rent instead.
Young people aren’t drowning in coffee. They’re drowning in high rent prices. So, while older generations might think it’s all about the daily latte, Powers offered a simple but blunt truth: “It’s not the coffee. It’s the cost of living.”
And if you're wondering if skipping your coffee will help you save for a house — well, don’t bother. The only thing you’ll be able to afford is a lot more coffee.
Erika Ryan is a writer for YourTango who covers entertainment, news, and human interest topics.
