Rising house prices and inflation are top financial concerns for young adults

There is a lot of talk these days about whether rising inflation is something temporary or likely to be persistent. What we know for sure is that inflation is already weighing on people.

I recently asked in this newsletter what the biggest money worries are for young adults. Just over 35.8% of those who responded opted for rising house prices, making it the top financial concern. No shock there – house prices jumped long before incomes.

Inflation was a close second choice as the main financial concern. If you combine the number of people who were most worried about inflation in general with those who specifically cited the costs of food, gas and rent, you get almost 31%. Inflation in general was chosen by 20.2 percent of the 417 people who responded to the survey, while rent increases were chosen by 6 percent, the cost of groceries was chosen by 3 , 8 percent and rising gasoline prices by 0.7 percent.

One can find a glimpse of why so many young adults worry about rising prices in some of the other selections for bigger money worries. Six percent said low wages worried them the most, 5.5 percent chose high debt levels and 3 percent stressed underemployment.

We also asked survey participants about their biggest financial success of the past year. Home buying took the top spot at 23.7%, which is not surprising as many millennials bought homes during the pandemic. Just over 20 percent cited finding a good job as their main achievement, and the same number cited their earnings in the stock market or with other investments.

Almost 5 percent of survey participants said their greatest success was negotiating a raise. This is a reminder that employees have unusual leverage due to a pandemic workforce shortage. People are changing jobs at a faster rate than usual and employers are finding that they have to offer something more to keep and attract workers.

Let’s take a look at a few other financial success stories that have only been mentioned a few times or once. Maybe they will inspire someone.

• I maximized my TFSA
• Entering a debt management plan
• Frugal life
• Bought a chalet
• Be literate in personal finance
• View budgeting results
• Worked hard and bought first year of college debt free

There were also angry responses to the question about last year’s biggest financial success. We understood. These are difficult times for a lot of people.

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Rob’s Personal Finance Reading List

How to manage an inheritance

Advice from the Blunt Bean Counter on taxes and other issues related to receiving an inheritance.

What happens when you buy items online and then return them

One of the most depressing things I have read in a while. Your return may end up in landfill.

For homeowners with negligent tenants

How to tell a tenant about “poor housekeeping,” which can lead to problems such as bugs and bad odors. Also some information on the responsibilities of tenants and landlords.

Three thoughts for the investor who has it all

How to invest in fine wines, litigation funding and music streaming royalties.

Ask Rob

Question: Are the Buy Now, Pay Later programs financially reasonable before the holiday season?

A: No. For expensive one-off purchases like a computer, I understand that people would choose to use this new option of many retailers of paying for things in monthly installments, often at no additional cost. But for holiday shopping, I think BNPL is a route to overspending.

Do you have a question for me? Send me. Sorry, I cannot respond to each one personally. Questions and answers are edited for length and clarity.

Today’s financial tool

That’s cool – a dividend investment calculator that helps you track how much income you could make now and in the future from dividends, with or without Dividend Reinvestment Plans (DRIPs).

The cashless zone

Michael Kiwanuka’s new song, Beautiful life, is a beauty. I have listened to it three times in a row recently.

Listen to this

The Radio-Canada program Ideas examines whether a university education still offers value. There is also a written summary.

What i wrote about

• Households That Made Money During The Pandemic Should Prepare For Financial Hardship
• These numbers show how much your parents’ wealth is a deciding factor for first-time homebuyers
• Why Variable Rate Mortgages Rule the Housing Market During a Pandemic – and Possibly After, too

More Rob Carrick cover and money

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