Is It More Difficult for the Next Generation to Improve Their Socio-Economic Status?

Continuing from the Previous Topic

We’ve covered how people can enhance their socio-economic status nowadays. And now, we’re going to discuss how our next generations can improve their socio-economic status.

The Missing Rungs

We tell our kids to work hard, study hard, and keep climbing the ladder of success. But what if that ladder is missing its rungs? What if, no matter how fast they climb, the structure itself is shifting beneath them?

As new parents or young couples thinking about your child’s future, you’ve probably asked yourself late at night: Will my children live better than I do? Or will they inherit a treadmill — running faster just to stay in the same place?

This fear isn’t unfounded. Around the world, generations are finding that the promise of “a better life for our kids” is no longer guaranteed. Let’s unpack why.

Two Generations, Two Journeys

Imagine two fathers.

    • Father A, in the 1980s. He works in a factory, doesn’t have a college degree, but buys a modest home on one income. He pays off his mortgage in 20 years, and his kids go to university without drowning in debt.

    • Father B, today. He has a college degree, works in a professional office job, yet spends over half his income on rent. Buying a home feels like climbing Everest. His children may one day get a degree too, but the tuition bill looks more like a mortgage than an investment.

Both fathers worked hard. But the ground they’re standing on has shifted. And the truth is this is happening in the world1.

Wages vs. Cost of Living

Let’s start with the basics: income versus expenses.

    • Stagnant wages. In many developed countries, real wages have barely moved in decades. According to the U.S. Bureau of Labor Statistics2, median weekly earnings adjusted for 1982-84 dollars have remained almost flat since 2000.

    • Rising costs. Housing prices, however, have skyrocketed. CNBC2 reports that in cities like Hong Kong, Sydney, and San Jose in California, house price-to-income ratios are at record highs, making homeownership out of reach for many young families.

    • Everyday living. Childcare, healthcare, and food costs have all crept up faster than incomes. It’s not just about saving less; it’s about struggling to save at all.

So when we tell our children, “Work hard and you’ll get ahead,” are we ignoring the math?

Education Still the Golden Ticket?

For decades, education was seen as the ticket to upward mobility. But is it still?

1. The cost. A study in by CNBC3 highlights that tuition fees in the U.S. have tripled in the past 30 years (adjusted for inflation). Students graduate not only with degrees but also with debt that delays buying a home, starting a family, or even pursuing their dreams.

2. The value. Employers are now questioning the traditional degree3. Tech companies often prioritize skills and portfolios over diplomas. Meanwhile, automation is reshaping industries faster than universities can update curricula3.

So parents wonder: If I save for my child’s education, will it truly guarantee stability — or just put them at the starting line of another marathon?

Is Technology a Friend or a Foe?

Automation, artificial intelligence, and digital platforms are rewriting job markets.

    • The threat. McKinsey Global Institute4 estimates that by 2030, up to 30% of jobs could be automated. Routine office work, retail jobs, and even parts of law and medicine face disruption.

    • The opportunity. At the same time, new roles — data science, cybersecurity, renewable energy, digital health — are booming. Entire industries, from climate tech to space exploration, are opening doors our parents never imagined.4

Technology, then, is not a closed door. It’s more like a maze: it eliminates some paths while creating new ones. The challenge is preparing our children to navigate it.

The Tilted Playing Field

The gap between the wealthy and everyone else has widened dramatically.

    • Wealth concentration. According to The Guardian5, the richest 1% own nearly half of the world’s wealth. This concentration creates barriers: better schools, safer neighborhoods, and stronger networks are available to some but not most.

    • Middle class squeeze. For young couples, the dream of stable middle-class life — home, car, decent savings — is harder to secure. The ladder exists, but it feels tilted, with gravity pulling hardest on those at the bottom. And which is happening in 2025.5

This raises a haunting question: If hard work no longer guarantees mobility, what does?

The Invisible Burden

Beyond economics and education, there’s the cultural and mental toll.

    • Rising expectations. Parents and children alike face pressure to “do it all” — excel academically, pursue passions, build financial stability, and maintain mental health.

    • Mental health crisis. Studies6 point to rising anxiety and depression among young people, often linked to financial insecurity and uncertain futures.

    • Resilience shift. Unlike their grandparents, who may have measured success in stability, today’s youth are encouraged to chase self-fulfillment. But fulfillment often conflicts with economic security, leaving many torn between passion and practicality.

Does Hard Work Still Pay?

Here’s the uncomfortable truth: hard work alone no longer guarantees upward mobility.

    • A 2017 study7 by economist Raj Chetty and colleagues found that in the U.S., only 50% of children born in the 1980s earn more than their parents at the same age—down from 90% for those born in the 1940s.

    • The “American Dream,” it seems, is fraying. And similar patterns appear in Europe and Asia.

But this doesn’t mean the next generation is doomed. It means the rules of the game have changed. Instead of climbing a single career ladder, our children may need to build bridges, jump tracks, or even design entirely new ladders.

What Can Parents Do?

For new parents or couples planning a family, the challenge is real — but not hopeless.

Here are some practical ways to prepare children for a changing socio-economic landscape:

  1. Skills over titles. Encourage critical thinking, creativity, digital literacy, and adaptability — not just grades.

  2. Financial literacy. Teach kids how money works: saving, investing, and managing debt.

  3. Resilience training. Normalize failure and problem-solving as part of growth, not setbacks.

  4. Global perspective. Opportunities may not be limited to one city or even one country.

“If the old paths are blocked, perhaps it’s time we guide our children to draw new maps.”

← Back

Footnote

  1. Findings from MIT Economics, and OECD
  2. Researches from U.S. Bureau of Labor Statistics, and CNBC
  3. Findings from CNBC, Forbes, and Pegaso University
  4. Findings from Forbes, The London School of Economics and Political Science, and The New York Times Magazine
  5. Studies from The Guardian, and The Wall Street Journal
  6. Studies from University of New South Wales and University of Cambridge
  7. Findings from Science

TNT Meaning

We’re a platform that publishes enlightening articles for everyone to read & discuss. Our mission is to bring new meanings into readers’ lives through our article on every Tuesday.

Comments must not include discrimination, hatred, violence, or pornography messages. Once we find that, the comment will be deleted, and the publisher may be banned from leaving any comments permanently.

Menu

Articles
About

Social Media

Twitter Instagram