Breaking the Cycle: How Wage Discrimination and Wealth Inequality Limit Young Adults’ Savings

Saving for the future is important, but for many young working people, it can feel impossible due to low income and high expenses. Research shows that the majority of Americans live paycheck-to-paycheck, and even among that earning between $100,000 and $150,000, 29% reported the same, according to an August 1, 2022, LendingClub report.

The financial advice industry often chalks saving money up to a matter of personal choices and discipline, but according to Tori Dunlap, founder of the finance and career platform HerFirst100k, this is not the whole picture.

The reality is that wage discrimination and wealth inequality limit young adults’ capacity to save, and the financial advice industry does not always address this. Dunlap says that it is important to have an honest conversation about the way these factors limit people’s capacity to save and not to rely on universal advice that does not take individual circumstances into account.

Dunlap advises that it is important to seek out financial education that fits your circumstances, don’t let anyone make you feel bad, break down monthly spending, create financial priorities, set goals and build healthy habits, set up transfers for retirement savings, and focus on what is right for you.

Most importantly, Dunlap advises to give yourself grace, to shut out the noise, and to focus on figuring out what is right for you. Personal finances are personal, and there is no one-size-fits-all solution. Therefore, it is important to take the time to understand your individual circumstances and to make informed decisions about your finances.