Millennials face financial struggles despite above-average salaries
Millennials in the Netherlands are finding themselves in a paradox: despite earning significantly above average salaries, many feel trapped by financial constraints. Rising housing costs, student loans, and increasing living expenses are forcing nearly a third of this generation to postpone major life milestones, according to recent research from ABN Amro.
The study surveyed Dutch individuals aged 25-45 who earn at least twice the gross median monthly income of 4,862.50 euros. It found that 48 percent of high-earning millennials lack financial freedom, with a disproportionate impact on younger millennials aged 25-35.
A significant portion of millennials view starting a family as a financial risk, with 40 percent of younger millennials expressing this concern. Additionally, 33 percent feel restricted by the housing market, and 27 percent report insufficient financial capacity to invest. Only 56 percent of respondents expressed confidence in their financial future.
“For many millennials, after paying rent or a mortgage, utility bills, groceries, and student loan repayments, there’s very little left of their four-figure salaries,” the report noted.
Nick, 32, one of the survey participants, described his challenges to De Stentor: “Despite my girlfriend and I earning well above average, we’re surprised by how little we have left at the end of the month. Rising costs and our spending patterns make saving more difficult than expected, even though we don’t live extravagantly. It feels like we’re more financially constrained than people with similar jobs ten years ago.”
Martijn Burger, a professor of happiness economics at the Open Universiteit and the Erasmus Happiness Economics Research Organisation (EHERO), confirmed these struggles. “In the 1990s, you could buy an average home with four times the annual median income. Today, you need ten times the median income,” he explained.
Burger added that millennials face heightened financial vulnerability due to higher debt levels, entry into the job market during economic crises, inflation, and flexible labor contracts. Many also fail to qualify for social housing, further compounding their difficulties.
Social media has exacerbated financial dissatisfaction among millennials, according to Burger. “It creates the perception that others are financially better off, leading to upward comparisons. Millennials often compare themselves to people who seem to have more, even though they’re better off than many others.”
Critics argue that millennials overspend on conveniences like dining out or specialty drinks such as oat milk lattes. However, Burger dismissed this notion as an oversimplification: “You’d have to skip an extraordinary number of oat milk cappuccinos to save enough to buy a house. Millennials aren’t victims, but the inability to build wealth makes them financially insecure.”
Burger referred to this predicament as a "golden cage," where millennials’ basic needs are met, but they lack room for savings or homeownership. “This dampens happiness, though not to the extent of causing profound unhappiness,” he said.
