Recently, Australian millionaire Tim Gurner stated in an interview for 60 Minutes avocado toast will be the downfall of millennials and their chances of buying a house. Continuing to elaborate he explains the high expectations millennials seem to have in regards to their lifestyles and while his point frivolous spending is detrimental to ones bank account are correct, he overlooks key points about the millennial generation, as well as oversimplifies and generalizes the actions of a massive group of people.
While the grandparents of millennials indeed did not go out to eat and buy $5 dollar coffees, it was most likely because such things were not as easily accessible and readily available than it is today. He also overlooks the fact spending money on enjoyment is not a new concept created by millennials, they just have much more available to them than previous generations due to rapid changes in society. When analyzing the activities of generations we must put it into the societal context of their time, not compare and contrast how younger and older generations would interact with a time other than their own.
Gurner also seems to have put an umbrella over all millennials, which happens to be the largest generation to date. He did not factor in that not all millennials are spending their money in the way he describes, and thus shines a negative light upon an entire group. This generalization of millions of people is not only ill-mannered, it leads to wrongly depicting a generation.
While millennials have been given a bad name when it comes to money and spending, they may actually be savvier than once believed. Millenials are actually the largest group among the workforce today and are taking part in their companies 401(k) plans. Millenials also tend to have roommates, which saves them money. Many steer clear of credit cards and do not take shortcuts when it comes to retirement plans; while many have bought their first mutual funds before other generations before them.
Finally, with the average down payment on a house in San Francisco being around $246,000 dollars, comparing two such different things is not even close to comparing apples to oranges, it's well... comparing toast to houses. With an avocado toast costing around $5 and a house in the Bay Area being $712,000, his comparison just does not hold merit.
While it is understood Gurner means to say excessive spending on items for enjoyment is what he believes will lead millennials wrong, his oversight of many details and thus simplification of a large and complicated system is what leads his argument to be easily refutable and wrong. So go buy your avocado toast, but be careful, you may not have a house to eat it in.
