Dear Monsters,

If there is one thing you probably know about me as the Millennial poster-child, is the interesting experiences with my helicopter parents. As the term “parenting” was invented in the 1970’s, parents worldwide started redefining what it actually means. From physical safety, to emotional attention, parenting has also rolled into an important aspect – financial support.

In today’s financial landscape, the influence of the “Bank of Mum and Dad” has become more significant than ever before. With rising economic uncertainty and stagnant wage growth, younger generations are increasingly relying on family wealth to secure their financial futures. This reliance has given rise to a new form of wealth distribution—inheritocracy—where financial success is determined more by inheritance than by merit. This gives way to many stereotypes about the young generation being spoiled, entitled and downright lazy, relying on their parents to solve their money issues.

But what are the unique financial struggles of Millennials and GenZers and how do they compare to the path that Baby Boomers took to accumulate their wealth? Are the older generations indeed more hard working and therefore richer?

Let’s dive into this fascinating topic and put this debate to rest once and for all.

Baby Boomers: The Self-Made Generation

Baby Boomers, born between 1946 and 1964, have often been dubbed the “self-made” generation. And this is indisputable. They grew up in a time of unprecedented economic growth, but they also faced significant challenges in their youth. Their parents, having lived through multiple wars and economic transitions, had little to pass down in terms of wealth. As a result, Baby Boomers had to build their fortunes largely on their own. They grew up in times of equal oppiortunities, as most of the people in the western world had little anyways. However, they did experience some tailwinds: Boomers benefited from a booming post-war economy, affordable housing, and steady wage growth.

While Baby Boomers have undoubtedly benefited from favorable economic conditions, they are also often blamed for the environmental and economic challenges we face today. Critics argue that the Boomers recklessly exploited natural resources, contributing to climate change and environmental degradation. Moreover, the economic policies that benefited them—such as tax cuts for the wealthy and deregulation—are seen as contributing to the financial inequalities we see today.

Of course it wasn’t all smooth sailing for the good old Boomers. Let’s be honest, they also faced their own set of challenges, from high inflation in the 1970s to the stock market crashes of the 1980s and 2000s.

Despite these obstacles, Baby Boomers accumulated a significant amount of wealth. Today, they hold the majority of global wealth, with estimates suggesting they control over 50% of it. Good for them, right? This tremendous wealth they are sitting on, is now being passed down to their children, creating generations that achieve financial security not through hard work and innovation, but through inheritance.

The Rise of Inheritocracy

Inheritocracy is the idea that financial success is increasingly determined by what you inherit rather than what you earn. This concept is becoming more prevalent as younger generations face economic conditions that are far less favorable than those experienced by their Baby Boomer parents. Property prices have skyrocketed while wage growth has stagnated, making it difficult for Millennials and Gen Z to accumulate wealth through traditional means. In many cases, the only way to secure a home or financial stability is through the help of the “Bank of Mum and Dad.”

This reliance on inherited wealth has led to a new form of inequality. While some young people are able to buy homes, start businesses, or pay off student loans with the help of their parents, others are left behind, unable to access the same financial support. The result is a growing divide between those who have access to family wealth and those who do not, exacerbating social and economic inequalities. The world of equal opportunities doesn’t seem that equal anymore. So, what does this mean to the world and to the values we are passing on to the new generations, dear Monsters?

Millennials and Gen Z: Living at Home and Borrowing for Homes

The stereotypes of Millennials and Gen Z living at home well into their 20s or 30s and relying on their parents for financial support are rooted in this new reality. With the cost of living far outpacing wage growth, many young people have no choice but to lean on their parents for help. Whether it’s moving back home to save money or borrowing from the Bank of Mum and Dad to buy a home, these generations are navigating a financial landscape that is far more challenging than that of their parents.

But this reliance on parental support also raises questions about meritocracy. In a world where success is increasingly tied to inheritance, what happens to the principles of hard work, innovation, and self-reliance? The rise of inheritocracy challenges the notion that anyone can achieve financial success through their own efforts. Instead, it suggests that those who are born into wealth will continue to prosper, while those who are not will struggle to get ahead.

In Between Blame and Responsibility

Sounds harsh, doesn’t it, Monsters? But it’s not all doom and gloom.

Many Baby Boomers are aware of the legacy they are leaving behind and are taking steps to make a positive impact. Some are using their wealth to support environmental causes, social justice initiatives, and programs that create opportunities for younger generations. This sense of responsibility is a crucial part of the conversation around inheritocracy and meritocracy.

New Age Leaders understand these challenges and are increasingly taking action to create a more equitable future. They recognize the responsibility that comes with inherited wealth and choose to invest a portion of it in causes that promote equal opportunity for new generations and protect the environment. By leveraging their resources to drive positive change, these leaders are helping to bridge the gap between inheritocracy and meritocracy, ensuring that success is within reach for everyone, regardless of their background.

Ultimately, the challenge lies in creating a society where both meritocracy and inheritocracy can coexist, providing opportunities for all while fostering a sustainable, inclusive world for future generations.