Was life really harder for our parents?

Older Filipinos often recount stories of walking long distances to school, living without modern conveniences and raising large families on modest incomes. On the other hand, younger generations argue that buying a home, owning a car and raising children have become far more difficult today.

So, who is right? The answer: both and neither.

Financial life was undoubtedly more difficult for our parents and grandparents in many ways. Yet when it comes to achieving major financial milestones such as buying a house, owning a car or raising a family, younger generations may actually face challenges that previous generations did not encounter to the same extent.

The distinction lies in understanding the difference between poverty and affordability.

As far as income is concerned, according to World Bank data, the Philippines’ gross national income (GNI) per capita was only about $230 in 1962. It rose to $240 in 1970, $780 in 1980, $820 in 1990 and $1,150 in 2000. By 2025, GNI per capita had climbed to about $4,850, classifying the country as an upper middle-income society.

In other words, the average Filipino today lives in an economy where income per person is more than four times higher than it was at the turn of the century and more than 20 times higher than it was during the early post-war decades. This transformation reflects decades of economic growth, rising incomes and improvements in living standards.

At the same time, average life expectancy also increased from about 57 years in 1960 to more than 70 years today. Educational attainment has also improved while access to information has become nearly universal.

Yet, why do many young Filipinos still feel financially poor? Because higher incomes do not automatically translate into greater affordability.

For example, many Baby Boomers purchased homes during a period when land was relatively abundant, urban populations were smaller and property markets were less speculative.

Although mortgage rates were often high, house prices relative to income were generally more manageable.

Today, housing prices in major urban centers have increased far faster than incomes. Studies by the Philippine Institute for Development Studies and other researchers have consistently identified housing affordability as one of the country’s major economic challenges.

Many of our parents purchased their first vehicles when roads were less congested, land values were lower and transportation costs consumed a smaller share of household budgets.

Today, car ownership remains attainable for many families, but it often imposes a heavier burden on household finances than it once did.

Many households in previous generations survived on a single income. Today, dual-income households are increasingly the norm. While this partly reflects greater opportunities for women and broader workforce participation, it also suggests that maintaining a middle-class lifestyle often requires more earning power than before.

College education was inaccessible to many families at the time of our parents and grandparents simply because schools were unavailable or admission opportunities were scarce.

Today, more Filipinos can attend college than ever before. However, the costs associated with quality education have increased substantially. Many parents feel compelled to invest in private schools, technology, transportation and extracurricular activities to help their children remain competitive.

Older Filipinos remember a time when incomes were low, consumer choices were limited and financial hardship was common. They are absolutely correct when they say life was difficult.

Younger Filipinos look at property prices, tuition fees and living costs, and conclude that achieving financial security has become more challenging. They are also correct.

The difference is that previous generations struggled primarily because they had less money.

Today’s generation struggles because the cost of achieving traditional middle-class goals has risen dramatically.

Perhaps the better question is not which generation had it harder, but what lessons can be learned from each.

The older generation demonstrated remarkable resilience, discipline and sacrifice despite limited opportunities. The younger generation, while richer, must navigate a more complex financial environment characterized by rising costs, longer life expectancies and rapidly changing economic conditions.

The tools have changed. The challenges have changed. But the fundamental principles of personal finance remain the same: spend less than you earn, save consistently, avoid unnecessary debt, protect adequately against risks to life, health and property, invest prudently and focus on long-term goals.

Every generation faces its own financial obstacles. The task is not to compare burdens but to understand them and to adapt accordingly.

Send questions via “Ask a Friend, Ask Efren” free service at personalfinance.ph, SMS, Viber, Twitter, LinkedIn, WhatsApp, Instagram and Facebook. Efren Ll. Cruz is a registered financial planner and director of RFP Philippines, seasoned investment adviser, bestselling author of personal finance books in the Philippines and a YAMAN Coach. To subscribe to the My PF App, email masterclass@personalfinance.ph. To learn more about personal financial planning, attend the 117th RFP Program this August 2026. To inquire, e-mail info@rfp.ph or text at 09176248110.