Census Data Suggests That $74,000 Is The Average Middle-Class Income In America, But He’s Explaining Why Gen Zers Disagree And Believe You Have To Earn A Lot More To Live Comfortably
When you think of someone being ‘middle class,’ what do you think is the minimum amount of money they make per year?
After analyzing Census data, it’s been said that around $74,000 is the average income for a middle-class American.
However, one TikTok user recently explained why people belonging to Generation Z disagree with that number and feel that to live comfortably in the middle class, you should be making a lot more.
“Gen Z doesn’t agree that $74,000 is middle class,” says Freddie Smith, a realtor and TikTok content creator, at the start of his video, citing a Newsweek article.
“No kidding; it’s not even close. Check this out.”
Freddie then begins to break down the hypothetical monthly expenses of a 25-year-old member of Gen Z who has a bachelor’s degree and makes $74,000 annually.
However, even this is a somewhat rare scenario, as Frankie says most members of Gen Z are making between $40,000 to $60,000.
“The take-home after taxes, 401k, and health insurance is $4,300,” explains Freddie.
Freddie then explains that the average student loan payment is around $500 monthly, knocking down the take-home amount to $3,800.
HBS – stock.adobe.com – illustrative purposes only, not the actual person
“Let’s say this person is financially responsible and decides to split a two-bedroom apartment in a medium-sized city like Orlando so that their payment is $1,200 a piece [and] $200 for utilities.”
The take-home amount has now been knocked down to $2,400. Freddie assumes this person doesn’t want to live off “Lucky Charms and peanut butter and jelly,” so they spend around $600 on healthy groceries.
Then, Freddie adds a $400 car payment, $200 insurance payment, and $150 for gas money. However, you can’t forget the $100 cellphone bill and $300 for social fun.
“They’re left with only $650,” says Freddie.
“A bachelor’s degree, $74,000 salary. You are living in a two-bedroom apartment with a friend and only have $650 left [each] month. It would take you years to save up to $30,000 that you would need for a down payment on a house with the closing cost.”
Freddie finishes his video by mentioning that the “goal post” for the middle class has moved from $70,000 to $120,000 in the past two years.
Many TikTok viewers expressed their frustrations with how much their income is actually getting them in the comments on Freddie’s video.
“Living on my own, I feel like I have less money at $100k than I did [when] my parents [were] making $45k,” commented one TikTok user.
If you’re part of Gen Z and working full time, do you think you qualify as middle class?
@fmsmith319 Gen Z doesn’t agree 74k is middle class
Sign up for Chip Chick’s newsletter and get stories like this delivered to your inbox.
More About:News