Millennials have been through a lot. Many of the generation were young adults when the Great Recession began, and to this day, they struggle to buy homes and pay off student debt. Now these jaded millennials are sharing their wisdom with Gen Z on TikTok, posting preparation tips and no-buy lists to ease the minds of young people who could be entering their first major recession as adults. President Donald Trump’s whiplash-inducing policy changes have everyone warning about dire consequences for the US economy, from Fed Chair Jerome Powell to Goldman Sachs analysts. The Trump administration’s tit-for-tat escalation in the global trade war could lead to a recession for both the US and the world this year, JPMorgan said this month. It comes during an already unprecedented string of events for young people — people in their early 20s are earning less and have more debt, already battered by the Covid-19 pandemic and an onslaught of inflation. So, the United States might not be in a recession right now, but its youngest working adults are still anxious — and seeking advice from their older peers. When scrolling through TikTok, Sasha Whitney, 37, noticed Gen Z users shared the same feelings over an impending recession: “downtrodden, frustrated, very bleak and hopeless about the future.” It’s a stark difference from when Whitney graduated from college in 2009 during the Great Recession, before social media became as pervasive and when Barack Obama, who ran his campaign on the concept of hope, just took office. “When I talked to some of my millennial friends, they were like, ‘Yeah, we were broke. We were struggling,’” said Whitney, whose primary audience on TikTok is aged 18 to 25 years old. “However, we weren’t trying to keep up with the Joneses. You weren’t trying to portray a lifestyle for social media.” Other millennials joked on social media about the sense of community they had during the recession, sounding nostalgic for the days of cheaper liquor, wearing business casual and endless replays of feel-good recession pop. “If you want to know how we survived, yeah we blacked out,” one millennial user quipped on TikTok. But millennials did share their real financial struggles. After graduating, Whitney lived at home for a bit, then moved out, paying rent and student loans and leaving $20 a week for groceries. She worked in retail immediately out of college and figured out how to handle her finances through trial and error. “I’m buying packs of tuna, frozen vegetables, bread, putting it in the freezer. That’s when it really hit me that something’s going on,” she said. Whitney’s TikTok video walked viewers through some recession tips, including: taking whatever job you can get, living below your means, and deleting payment platforms like Klarna and After Pay. Other videos from millennials on TikTok offer recession preparation guides, such has having an emergency savings fund and updated resumes. “If I can give somebody advice, especially younger folks, that’s what I’m going to do,” Whitney said. Living below your means Many TikTokers are vowing to do one thing: limit their spending. For Imani Smith, a 29-year-old in Dallas, that means password-sharing subscriptions with her friends and cutting back on going out to eat. Beauty maintenance is also a high cost, so she buys press-on nails from Amazon instead of going to the salon. Salon owners are reporting more requests for “recession blonde,” cheaper, more low-maintenance hairstyles. And despite the famous lipstick index — the theory that small “treat yourself” purchases uptick during economic downturns — social media users have promised to cut out small purchases like expensive lip balms and candles. “I want to (save) and build a practice of doing it before I have to do it out of basic necessity,” Smith, who described herself as in between a Gen Z and millennial, told CNN. She added that she uses TikTok, like many young people, as a search engine. In a video on TikTok, she asked viewers who were adults in 2008 whether her recession plan was good enough. When people sense their budgets contracting, they have to decide what they’re going to spend on, Simon Blanchard, a professor at Georgetown University’s McDonough School of Business, said to CNN. He added it may be a good time to self-reflect if you have enough emergency savings, whether we’re in a recession or not. People tend to cut an entire category of spending rather than a little bit of everything, so it doesn’t seem like they have to downgrade on every part of their life, Blanchard said. “And maybe those small indulgences like lipstick are the things that might be first to go because they’re just non-essential,” Blanchard said. For Gen Z, more anxiety and uncertainty Despite the advice from millennials to let go and live, as all the great music of the mid-2000s encouraged, anxiety still persists among many young people. After talking to people who lived through 2008, Smith said that “they might’ve lost their jobs, but the cost of living was so low back then that they could have picked up something retail and held themselves afloat for a while,” emphasizing her worries for the job market right now. For many young people, their anxiety goes back to the Covid-19 pandemic. Smith had just started working her first corporate job when the pandemic hit, triggering the shortest recession in US history that ended after two months in April 2020. “It put me in the mindset that I need to be prepared for anything,” Smith said. “Because none of us could have anticipated Covid-19 and the lasting effects that had.” CNN’s Lacey Russell contributed to this report.
Millennials are giving Gen Z advice for their first potential recession
TruthLens AI Suggested Headline:
"Millennials Share Financial Advice with Gen Z Amid Economic Uncertainty"
CNN
7.7
TruthLens AI Summary
Millennials, who faced significant financial challenges during the Great Recession, are stepping up to offer guidance to Gen Z as they navigate potential economic uncertainties. With many millennials still grappling with student debt and housing affordability, they are using platforms like TikTok to share their experiences and tips on how to prepare for a recession. The current economic climate, influenced by unpredictable political decisions and the lingering effects of the COVID-19 pandemic, has created a sense of anxiety among young adults. JPMorgan has warned of the possibility of a recession due to escalating trade tensions, which adds to the concerns of Gen Z, who are often earning less and dealing with greater financial burdens than previous generations. Millennials like Sasha Whitney have taken to social media to address these feelings, contrasting their own experiences of economic hardship with the modern pressures of maintaining a social media presence. They reminisce about the sense of community they found during their struggles, highlighting the differences in lifestyle expectations between their generation and that of Gen Z.
In response to the looming economic fears, millennials are offering practical advice to their younger counterparts. This includes recommendations for living below one’s means, creating an emergency savings fund, and being cautious about spending habits, particularly when it comes to non-essential items. Individuals like Imani Smith are implementing strategies such as sharing subscription services and opting for cost-effective beauty solutions, reflecting a broader trend of frugality among young adults. Experts suggest that during times of economic uncertainty, individuals often reassess their spending priorities, leading them to cut out entire categories of expenses rather than making minor adjustments across the board. Despite the guidance from millennials, many Gen Z individuals remain anxious about their financial futures, shaped by their experiences during the pandemic and the perception of a fragile job market. This ongoing dialogue between the two generations highlights the shared challenges of economic instability and the importance of community support in navigating these turbulent times.
TruthLens AI Analysis
The article addresses the concerns and preparations of Millennials as they share their experiences and advice with Gen Z regarding the potential for an impending recession. It highlights the differences in economic conditions and social media influences between the two generations, emphasizing the anxiety that younger adults feel as they navigate financial uncertainty.
Generational Wisdom and Experience
Millennials experienced the Great Recession firsthand, which has shaped their financial habits and perspectives. Their current willingness to share advice on platforms like TikTok reflects a sense of community and support among individuals who faced similar challenges. The article illustrates how Millennials are using their experiences to guide Gen Z, who may be entering their first significant economic downturn. This exchange of knowledge serves to alleviate some of the anxiety that younger adults feel in the face of economic instability.
Economic Context and Concerns
The article outlines the broader economic context, including potential recession indicators stemming from political decisions and global trade tensions. The mention of influential figures like Fed Chair Jerome Powell and analysts from Goldman Sachs adds credibility to the concerns about the economy. It portrays a sense of urgency as Millennials emphasize preparedness, signaling that the economic landscape is precarious and that proactive measures are necessary.
Social Media Influence
The comparison between Millennials' experiences during the Great Recession and the current struggles of Gen Z highlights the role of social media in shaping perceptions and lifestyles. Millennials reflect on a time when social media was less dominant, suggesting that current economic pressures are compounded by the need to maintain an image online. This commentary raises questions about consumer culture and the psychological impact of social media on financial decisions.
Public Sentiment and Trust
By sharing their experiences and tips, Millennials foster a sense of solidarity with Gen Z. However, there is an underlying concern about whether this shared knowledge is enough to genuinely prepare younger individuals for the challenges ahead. The article hints at a broader societal anxiety regarding economic prospects, which could lead to a lack of trust in institutions and traditional economic narratives, creating a cycle of fear and uncertainty.
Potential Implications for Society and Markets
The concerns raised in the article could have significant implications for consumer behavior and market dynamics. If Gen Z adopts a more conservative approach to spending based on the advice from Millennials, this could lead to reduced consumer confidence, affecting businesses and stock markets. The cautious sentiment among young adults may influence sectors such as retail and real estate, where Millennials and Gen Z are key demographics.
As for the article's credibility, it appears to be grounded in real experiences and current economic discussions. However, the framing of the narrative does lean toward emphasizing anxiety and uncertainty, which could be perceived as manipulative in its appeal to emotions. By focusing on the negative aspects of financial insecurity, it may inadvertently downplay the resilience and adaptability of younger generations.
The article does not overtly suggest a manipulation of facts but rather presents a narrative that may resonate more with those who share similar experiences. The language used is reflective of a concern for the future, which could be seen as a way to mobilize younger audiences toward preparedness.
This analysis reveals a portrayal of the economic landscape that is both timely and relevant, speaking to the fears and aspirations of younger generations as they navigate their financial futures. The article successfully captures the essence of a generational dialogue about economic preparedness, albeit with a focus on the more daunting aspects of the situation.