The Economics of Being a Student in 2026: Why Being Young Is Getting More Expensive

Written by Kaito Le

Image source: Meeras

There is a kind of poverty that consists in having just enough money to buy something, but not quite enough to buy it without giving it a second thought.

A coffee after school. A meal out with friends. New shoes. A subscription to a streaming service. None of these things seem that extravagant in isolation, but somehow, by the end of the month, the little things have added up to quite a bit.

Being young has always meant being short on cash, but what feels different now is the sheer amount of money that one feels one needs to make in order to be able to afford the basics of an average teenager's life. We are made to feel that we need to budget more carefully, that we need to spend less and save more, but we are never given any reason to examine why the cost of getting by is so high.

Part of the answer lies behind inflation. As prices rise, the same amount of money buys less than it once did.. A student allowance may remain unchanged, however, lunch suddenly becomes more expensive, transport takes a bigger bite out of their budget, and there is less left for anything else. Unlike adults, students rarely have the freedom to negotiate a salary or increase their income whenever expenses rise. Therefore, their purchasing power shrinks while their financial independence remains limited. 

Yet money does not usually disappear through necessities alone. Social media constantly presents teenagers with trendy outfits, expensive restaurants or cafes and a seemingly endless row of perfect lifestyles. A meal with friends becomes more than just food; it becomes an opportunity to feel like you belong there. Of course, enjoying nice things is not inherently irresponsible, and social media is not the sole cause of financial pressure. However, when declining an invitation means “Fear of Missing out” (FOMO), spending can begin to feel less like a choice and more like an expectation. The real cost is not simply the money spent, but the experiences sacrificed when we cannot afford to keep up.

Naturally, budgeting can also help. Comparing prices, planning purchases ( whether you would use the product even after 3 months to see if it is deemed useful ) and saving regularly are valuable habits. However, financial discipline cannot solve everything. A student cannot save money they do not have, and cutting unnecessary expenses cannot always compensate for the rising in essential cost. Additionally, schools should teach practical financial literacy, while communities around us should make social activities more affordable. From this, young people need to learn how to manage money, but they as well shouldn’t be made to feel that every financial struggle or decision they make is their own fault.

The hidden tax of youth is paid in deferred purchases, spurned invitations and meticulous weighing up of pleasures. We should learn to spend wisely, but we must also ask ourselves why normal life has become progressively unaffordable. Youth should be a time of discovery, not of withdrawal. Maybe it is time that we stopped questioning young people about their extravagant spending habits, and started asking why everything costs so much.