The New American Dream: How Brands Are Aligning with Young People’s Aspirations | The Banking & Payments Show

Summary

Podcast Summary: Behind the Numbers: an EMARKETER Podcast

Episode: The New American Dream: How Brands Are Aligning with Young People’s Aspirations

Host: Rob Rubin (A)
Guests: Jeremy Goldman (C), Paolo Flores Marquez (B)
Date: October 14, 2025

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Brief Overview

This episode dives deep into how the traditional “American Dream” is being redefined by younger generations. The hosts, with backgrounds in marketing, retail, and consumer behavior, explore how Gen Z and Millennials face new economic realities, shifting priorities toward flexibility, fulfillment, mental health, and financial security. They examine the impact on brands, the role of social media and debt, and how marketers must respond to these new aspirations.

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Key Discussion Points & Insights

1. Redefining the American Dream (01:31–05:35)

• Classic vs. Modern Dream:
  The historic dream focused on home ownership, a stable job, college, and retirement is giving way to fluid ideals: “freedom, flexibility, fulfillment.”
• Generational Perspectives:
  • Both Jeremy and Pal draw from immigrant family backgrounds where education and financial stability were paramount.
  • There’s a recognition that generational wealth remains rare, which continues to shape these aspirations.
• College Value Erodes:
  College no longer guarantees prosperity; rising student debt often becomes “a stone around your neck.”
  • Memorable quote (B, 04:34): “Student debt is a major hurdle. It is a stone around your neck. Right. …It makes things a lot more difficult.”

2. Economic Barriers: The Dream Costs More (05:35–08:25)

• Skyrocketing Cost:
  The American dream now costs about $5 million (per Investopedia), increasingly out of reach for young people.
• Not Just Inflation:
  Paolo highlights social media's dual impact: sparking inspiration but also shame, exacerbating feelings of inadequacy.
• Instability Worries:
  Concerns now include not just affordability but also political instability and climate change.
• Changing Homeownership:
  Homeownership, once a wealth vehicle, is less practical and appealing—especially with transient, nomadic younger lifestyles.
  • Memorable quote (C, 06:52): “We're redefining what the American Dream is unofficially on the fly.”

3. Generational Shifts and Brand Response (08:25–12:17)

• Loyalty Is Fickle:
  With wealth concentrated in older generations, Jeremy argues marketers aren’t targeting prosperous Boomers and Gen Xers enough.
• Gen X: The “Forgotten” Generation:
  They are now financially dominant, positioned to inherit wealth and with more spending flexibility.
• Emerging Priorities for Young Consumers:
  • Gen Z remains interested in home ownership (73%) but places much greater value on work-life balance (71%) and the ability to avoid living “paycheck to paycheck” (77%).
  • Mental health, flexibility, and even the ability to live nomadically are major aspirations.
    • Notable quote (B, 12:10): “Part of their American dream is mental health… Like they want that ability to feel happy and to enjoy the lives that they've built, which I think is at odds with the financial stress.”

4. Quantifying the Dream: Mobility Declines (12:54–16:08)

• Social Mobility Drops:
  90% of 1940-borns outearned their parents; by the 1980s, only 50%. The expectation of upward mobility is no longer the norm.
• Debt as an Adjustment:
  Youth increasingly rely on debt as a survival strategy, not just to “get ahead.”
  • Notable quote (B, 13:47): “If you're already doomed and financially struggling, then, like, what's another, you know, $150 on the card?”
• Debt Jubilee Concept:
  Rob introduces the idea that the government may eventually have to forgive large amounts of consumer debt, referencing recent student loan forgiveness efforts.

5. Shifting Aspirations and Brand Messaging (16:08–17:36)

• Experiences Over Status:
  Jeremy notes a shift from material aspiration (e.g., luxury goods) toward “experiential” rewards and emotional resonance.
  • Quote (C, 16:08): “People will place a premium on certain things, such as experiential events, even more than they would on, like, let’s say, a status symbol bag.”
• Affordability and Dupes:
  The rise of affordable “dupes” for luxury goods reflects the new consumer mindset—status but with financial consciousness.

6. The American Dream in 2030: Predictions (17:57–20:35)

• Fulfillment as the New Core:
  Jeremy forecasts the dream will be about finding some form of work fulfillment, even if that means multiple jobs or “side hustles,” due to the reduced feasibility of early retirement.
  • Quote (C, 17:57): “The American dream is really changing… tied to finding fulfillment. …the average person is going to have something that we would previously have called a hobby that now is going to be a side hustle.”
• “Soft Life” and Self-Care:
  Paolo coins the Gen Z perspective: the dream is about “living a soft life”—security, self-care, and the freedom to pursue what you love, not just grind for accumulation.
  • Quote (B, 19:16): “The American dream is the ability to live a soft life. …to feel secure, to focus on self-care, and to do the work you love, not because you have to.”
• Security Remains Central:
  Rob summarizes: Regardless of the specifics, the American dream’s essence is—and remains—security.

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Notable Quotes & Memorable Moments (with Timestamps)

• On Generational Wealth:
  “That is the challenge. That is the dream. But not, not feas.” (B, 03:15)
• On Upward Mobility:
  “By the 1980s, that share had fallen to 50% earning more than their parents. So, you know, I'm sure it's less than that now for kids who are graduating.” (A, 12:54)
• On Debt Mindset:
  “It's a survival thing. …if it's between not eating…” (B, 15:46)
• On Mental Health as Priority:
  “Part of their American dream is mental health. …It’s non-negotiable for them.” (B, 12:10)
• On 'Soft Life':
  “I think the American dream is the ability to live a soft life. …it's because it's so versatile.” (B, 19:16)
• On Brands and Experiences:
  “You really have to try to connect at an emotional level as opposed to a logical level when you're selling these things.” (C, 16:08)

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Timestamps for Important Segments

• 01:31–05:35: Personal takes on the new American Dream, education, and generational wealth.
• 05:35–08:25: The soaring cost of the dream, impact of social media, lifestyle changes.
• 08:25–12:17: Brand strategies, Gen X & Boomer focus, young people's definitions of success.
• 12:54–16:08: Social mobility stats, rise of debt, government responses.
• 16:08–17:36: Aspiration and brand connection amid financial restraint.
• 17:57–20:35: Predicting the 2030 American Dream: fulfillment, soft life, and security.
• 20:35–20:55: Mental health, security, and generational concerns.

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Final Thoughts & Takeaways

• The American Dream is not dead, but transforming—financial security, flexibility, and fulfillment are more central than ever.
• Younger generations want work-life balance, mental health support, and the freedom to chart personal paths—even if traditional milestones remain out of reach.
• Brands must adapt by understanding shifting definitions of success and targeting both affluent older consumers and value-driven younger ones.
• Security—personal, financial, emotional—remains the underlying desire across generations.

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This episode offers a nuanced, data-backed look at how the American Dream—and marketing itself—must evolve to reflect new realities and aspirations.

Transcript

[A]

Consumers skip ads, but they don't skip rewards. Fetch drives performance. With over 12 and a half million monthly active users and over 11.5 million receipts scanned daily, capturing 88% of household spend, your brand becomes the reward, earning real engagement, verified purchases and loyalty. Fetch, America's rewards app, where brands are the center of joy. Hello, everyone, and welcome to the Banking and Payment show, an E marketer podcast made possible by Fetch rewards. Today is October 14, 2025. I'm Rob Rubin, head of business development at eMarketer and your host. Today we're talking about something big, the new American Dream. The classic idea of the American dream, home ownership, a steady job, a college education, a comfortable retirement is shifting, costs are up, values are changing, and priorities look different for Gen Z and Millennials than for boomers and even Gen X. To unpack this, I'm joined by Jeremy Goldman, who covers marketing and retail trends, and Paolo Flores Marquez, who analyzes demographic and consumer behavior changes. Here at eMarketer, this is the first time we're doing a podcast together. Hey, guys.

[B]

Hello.

[C]

Hey. I'm really excited for this. Thank you so much for having us.

[A]

Yeah, I'm really excited too, and I appreciate you guys joining. Before we start, because it's your first time, I always ask an icebreaker, and my icebreaker is, what's your personal take on the American dream in 2025? Is it still about a house with a yard or has it become something more fluid like freedom, flexibility, fulfillment? Pal, why don't you go first?

[B]

Sure.

[A]

Yeah.

[B]

I think financial stability is always the core part of the American dream. I think. I don't know. I come from an immigrant background, so, like, that was the primary driver in getting here. But now in a modern sense, I think it, a lot of it comes with living on your own terms. Right. And that may look different depending on who you are and what your passions are.

[A]

Yeah, Jeremy.

[C]

Yeah, I think that's a really good point. I'm a second generation American and, you know, it's very interesting to see how trends really shape and, you know, the history of each individual family is very different. But one thing that I notice, and we study this in the creator economy, is that there are a lot of people who value things like flexibility and fulfillment. Right. And there are a bunch of people who, if you think about the term side hustle, that exists for more and more Americans, and that's part of their dream is just to be fulfilled and to make enough. So it's these different things working in concert with one another.

[B]

Yeah. I also think that once you hit that financial stability, right. Like there are families that have already built generational wealth and they're pretty able to support like future generations. It opens up the door to sort of figure out who you are and live and like lean into those things that you may not have been able to do if you had been struggling to reach that financial stability.

[A]

But so few families have generational wealth.

[B]

Correct. That is the challenge. That is the dream. But not, not feas.

[C]

And I would argue, yeah, I think that this is where why this is such a great conversation is because the American dream for a lot of people, I think that they're kind of not even waking up to that might not be possible in the way that previous generations saw it. They're not even thinking about that as like even within the realm of consideration because so much wealth is in reality controlled by.

[A]

It also depends as what Powell was saying, it kind of. And I'll jump, we're going to jump on this. But it's sort of interesting, you know, for my family, you know, when I was growing up, it wasn't even really a question about whether I was going to college or not. I was going to college. Like that was not part of a conversation about choices. And part of that is like my parents vision of the American dream. Right. Like I have to go to college. Of course they went to college. I couldn't do worse.

[B]

Right.

[A]

But now like with my kids who are sort of, you know, gen zers, I have one still in college. We talked about you don't have to go to college.

[B]

Yeah. It's so frustrating for me because I grew up the same way. My parents both went to college in Mexico. And so for me they were like, you have to go. This is not a negotiation.

[A]

Like you're going. I'm sure Jeremy, you did too.

[C]

Oh my God. Absolutely. Yeah.

[B]

Yeah. And it's really frustrating because I love school, I love learning. I love like the act of like finding out more about the world around me. And I really think that it's something that should be available to everyone. But student debt is a major hurdle. It is a stone around your neck. Right. And if you. It's a major commitment that I don't think people fully understand when they're 18 and you're told to like be to do this and then it'll solve all your problems. And now we're seeing that it doesn't solve all your problems. If anything, it's like, it makes things a lot more difficult.

[C]

Well, and how about the fact that, you know, I cover advertising. And obviously, if a platform tries to increase its cost to you, because it works, right, then what happens is if you keep on getting that same return, you're getting a lower roi. And this is something that I think we're seeing so much with colleges, is that they've gotten so much more expensive. They haven't really been able to justify that. And I just say, you know, I don't have a kid going to college for another six years, but I'm like, it might be better to just invest in her startup and just give her the money, you know, like year by year, rather than send her there.

[A]

That was the longest icebreaker I've done, but it was great. I want to jump to our first segment, the headlines. And in headlines, I pick an article that's related to a topic that we're discussing, the American Dream Today. The impetus for this episode came from a USAA Today article. The American dream now costs $5 million, according to an Investopedia analysis. We put a link in the show notes. Basically, the American Dream costs more than ever. And for young people, home, college, retirement are drifting out of reach. So let's get into it. Like, what is driving this? Just inflation.

[B]

I don't think it's just inflation covering demographics. I cannot speak about younger generations without speaking about social media. Right. I think social media sparks inspiration and desire and also shame when you're comparing yourself to, like, what other people have and what you don't. I think it's also not just like, the financial circumstances. It's also a concern about political instability and climate change and what the future looks like. I think there's a lot of worry about, like, even if I do achieve that, is it, am I going to get to keep it?

[A]

Right? And I guess that's the thing. Is, is it less achievable? Like, is the dream less achievable or different?

[C]

Both, I think. I definitely think both. But because ultimately, like, what we're doing now is we're redefining what the American Dream is unofficially on the fly. And that's this very interesting thing where, like, if you look a little bit at some of the data about, like, home ownership, for instance, and people who feel that in reach, I mean, that has just gone by the wayside. There are a lot of people who say, I realize that home ownership was previously a way to wealth, but A, it's out of reach, and then B, will that really necessarily give me that type of flexibility? You know, is it the appreciable asset that it was? Let's say a generation ago. So I know some of the retailers that I cover who are really invested in home improvement, remodeling and so on, they are concerned about this trend because you know that obviously if people treat their homes as more transient places, then they're not going to invest as much.

[A]

In them, not going to fix them up so much.

[B]

Yeah, yeah. I think there are also people who don't see the point in buying a house if they're going to be moving constantly. Right. There are people, there's like a whole segment of our generations or these generations that are like, nomadic. Like, they love moving every once in a while. And so they don't want to be tied down to something that they can't even guarantee is going to help them in the future.

[A]

But is that just a reaction to the fact that they can't afford to get tied down?

[B]

It might be, yeah. I think, I think it's a combination. I think, I think it's a combination of not feeling beholden to the standards that came before you. So I think there is a level of rebellion.

[A]

Right.

[B]

But I think it's. And the re like, being realistic about.

[A]

Our current situation, like, defeated, almost like, I'm not going to be able to do that, so I'm going to like, blaze a new trail here.

[C]

Exactly. I think that's a really good way of putting it. If you think about the idea of also kind of like, how much wealth is being passed down, I've been looking a little bit in terms of, like, which generations are going to be inheriting how much wealth. And to me, one thing that I think most marketers are not doing is they're not investing in boomers and older consumers who have more disposable income. You know, like, if you think about the fact that you used to basically say, let's invest in younger generations and we'll keep those people, you know, buying from us for years on end. We all know loyalty is, it's, it's becoming more fickle. And it makes, I think, a lot of sense to say we don't know how much wealth is going to be transferred to younger generations. Maybe we should actually try to build loyalty with older cohorts. So that to me is like an undersold story here.

[A]

Is that how you think brands, like our marketers are responding to the tension? They're actually trying to deal with this?

[C]

I will say they're doing it a lot less than they ought to. That's why I think it's this interesting under the radar story, which is you know, frankly, think about who can buy your product. And if you think that loyalty is not necessarily dead, but it's a lot more challenged than it was like, let's say when you or I were growing up, then it makes sense to say, like, who has disposable income now? And I think that you do see that with, I think in particular luxury brands, that they are leaning into people who can actually afford to spend and still see these things as status symbols.

[B]

Yeah, I think this is a good time to mention Gen X, who always gets forgotten in a lot of these generational conversations. But Gen X right now, you know, they're heavily in their careers. If not approaching retirement, they're financially stable. They are, they have kids who are either like on their way to leading, either hitting their teens or out of the house. Right. So they have like more flexibility. And so. And they're about. They're set to be the first people to inherit the money that comes from baby boomers. So they're in a very financially opportune position. And baby boomers are like the youngest of the baby boomers. Next year will hit eligibility for retirement. So we're talking about downsizing, we're talking about more travel, we're talking about like, yes, increased medical costs, but also like, you know, the ability to pursue passions and hobbies that they didn't have a chance to before. So again, to Jeremy's point, yes, there's an untapped audience there that is not.

[C]

Being served as a Gen Xer, I have to kind of agree with that. Yeah.

[A]

As a baby boomer.

[B]

As a millennial.

[A]

Okay, boomer, what do you think? I want to ask Powell, like, how do you see younger generations redefining success then?

[B]

Oh, so this is interesting. There's a report from adolescent earlier this year. And so some of it is very traditional. Right. Like 73% of young gen zers still want homes, but like, how they get there is very different. Right. As we talked about earlier, college is not the answer. 77% define success as not living paycheck to paycheck, which I think is very like also standard to the American dream. But 32%, almost a third, still dream of having a nomadic lifestyle. So they want that freedom to travel and like get up and leave if they want to. They also 71%, which I think is high and also lovely. They rank work, life balance as a top priority. So part of their American dream is mental health. Right. Like it's non negotiable for them. Like they want that ability to feel happy and to enjoy the lives that they've built, which I think is really at odds with the financial stress that we're currently experiencing.

[A]

But I, and also at odds with the American Dream was never about feeling good. That wasn't part of the equation.

[B]

It's about grinding constantly until you keep getting more and accumulating. So it's very interesting for them to add that. And then one final point about that they mentioned in this report that I thought was fascinating was 74% say that the cost of living dictates where they live. And a facet of that is that walkability is now seen as a luxury because that means they don't have a car, which means it doesn't need maintenance, which means it doesn't need insurance, which means it's one less financial burden for them to worry about. So they're, like, kind of moving away from that necessity of having a car, which I, I, I found fascinating.

[A]

That is fascinating. I want to quantify this because the data really does tell a great story. In our final segment, Story by Numbers, we discuss a few numbers that frame the story according to an Opportunity Insights study. This is fascinating. 90% of children born in 1940 grew up to earn more than their parents. That's like the genesis of the American dream, right? Like, everybody's doing better than your previous generation. By the 1980s, that share had fallen to 50% earning more than their parents. So, you know, I'm sure it's less than that now for kids who are graduating. Are they going to be able to, at the same age, have the same earning power as their parents? I don't know. How does this economic reality reshape consumer behavior?

[B]

I think it makes debt a lot more appealing.

[A]

Right.

[B]

I think we're seeing a lot of engagement with credit cards and, like, debt just trying to keep up. And this feeling, this kind of like, if you're already doomed and financially struggling, then, like, what's another, you know, $150 on the card? Like, what's the trip?

[A]

Can I just say that I, in a previous episode, I wheeled out this term called a debt jubilee. I like to say it that way, with a higher octave. But a debt jubilee is historic. It's when a government or a state basically wipes, like, cleans the slate. Like, we're going to clean the slate. No more debt. And a good recent example is when the Biden administration tried to forgive student loan debt. That's a debt Jubilee. Jubilee. And I sort of think eventually, and this is something I said in a previous episode, we're going to have another debt jubilee and it's going to be around consumer debt and they're just going to have to write it off somehow because it's become untenable.

[C]

I mean, if you can tell me when exactly that's going to happen, Rob, that would be.

[A]

Right, so you can rack up.

[C]

Yeah, no, because. Because I think that when you look at like this whole entire idea of what people kind of think are like, what are the biggest issues? Right? And I think that, you know, cost of living, that is one of the biggest concerns, not just in the US but also for Gen Z and millennials abroad. According to a Deloitte study, in terms of US Gen Z, the economy is the biggest concern. And inflation, you know, is really like, across, like that continues actually to be a concern because it's not necessarily that the levels are so high anymore. It's just that they kind of past a certain kind of tipping point for a lot of consumers. And I think, like, all of that adds up to a conducive situation for debt where a lot of people know that. Yeah. That this is something that they shouldn't necessarily lean into, but they might have to.

[B]

Yeah, it's a survival thing. Right. Like at a certain point, like. Yeah, like if it's between not eating.

[A]

Well, that is, That's a sign is how much are people putting groceries on credit cards? You know, that's always a. That's always a tough one. Jeremy, just because I have you here, I want to ask you, are brands marketing aspiration differently now than they used to?

[C]

Yes. I mean, I think one of the key things that's really important is, and this came out of the pandemic, so one thing that we're seeing is people will place a premium on certain things, such as experiential events, even more than they would on, like, let's say, a status symbol bag. In years past, you know, like, they still absolutely do care about aspirational goods and conspicuous consumption, but it's different. You know, it becomes something where people, let's say, are going to purchase a few nice, you know, pieces of apparel that are going to reflect status, but maybe 20% less than they did before. Right. They're being a little bit more judicious in that. So people still want to find their moments. And I think for a brand, what that means is you really have to try to connect at an emotional level as opposed to a logical level when you're selling these things. And that was always true, but it's even more so now when people are being a lot more judicious about where they're going to be spending.

[A]

Yeah.

[B]

And I think you can see that in, like, the rise of dupes, the popularity of dupes of, like, luxury products. Speaking of handbags. Right. And you can see brands responding to this, Right. Like you see Coach and then Coach Outlet and the way in which they shift, like popular Coach bags into the Coach Outlet, like cycle. That makes it more affordable and more achievable. So people still can have that level of conspicuous consumption at a price that doesn't kind of dilute the brand, but is still responding to that shift in consumer behavior.

[A]

I want to, just because we have to end. This has been such a great conversation. I feel like I could go on forever. But I'd really love to have both of you give us a take on what you think the new American dream will be. Pretend you're in 2030. What's the American dream look like? Who wants to go first? Jeremy?

[C]

Yeah, I think that the American dream is really changing. And a lot of it, I think, is going to be tied to finding fulfillment. Not necessarily being able to think in terms of retiring that early, because that's one word that we really didn't talk about here. But I think that people are kind of resigned to the fact that they will be working for longer. And that's not necessarily part of it about just, you know, quitting the workforce, but finding meaning in the work that they do. And I think that, by the way, that's where a lot of the AI related concerns are coming from. It's not that people think necessarily that they won't have a job, but a lot, if you look, read between the lines, a lot of studies seem to indicate that there might be a lot of jobs that people found fulfilling that an AI can do more efficiently and then that will be taken away from you. So you do see a lot of unease in that regard. But I do think that the average person is going to have something that we would previously have called a hobby that now is going to be a side hustle. People will have multiple jobs, but at least some of those jobs will fulfill them. And they are going to have to work for a while. They're not going to have that much in the way of savings. But I think that that will be the new reality. So the dream will be kind of a little bit more achievable in that regard.

[B]

Yeah, I don't know. I don't know. The language for me is very different. I'm going to borrow from Gen Z Vernacular and be like, I think the American dream is the ability to live a soft life. I think it's the ability, yeah. Not have to worry about these day to day concerns and living paycheck to paycheck, but also like focus on yourself and self care and like do the work that you want to do because you love it and not because you have to. And I frame it in that way. I don't think it's that much different, but I think it's because it's so versatile. You know, for some people that's living in a van, going across country. For some people it's owning a tattoo shop and 10 million dogs. Like for some people it's still the white picket fence and like kids. Right. And so I think it's just having that level of security is still always going to be the American dream. The ability to make your own choices.

[A]

Right. I would say just to sum up, if we were to think about the American dream not as redefining it but raising it up altitude wise. It's always been about security. It's about feeling secure. So all of those things that were the American dream were you need to feel secure, you need to have a comfortable, you need to do all this so that you can have this comfortable retirement. The end. And I think that, that whatever the dream actually is, it's going to be whatever makes people feel secure.

[C]

Well said. I think by the way, that Edison Research and Sirius XM Media study that I put up before tied for third for leading concerns among us Gen Z was access to mental health resources. And that goes into like, how do we define secure? I think that that is for a lot of people, that's going to be more important.

[B]

Yeah, agreed.

[A]

I agree. I want to thank you guys. I'm going to have you guys back. This is me. Great.

[C]

Thank you so much. Okay.

[A]

I love this episode. So thank you for joining and I want to thank everyone for listening to the Banking and Payment show, an E marketer podcast made possible by Fetch Rewards. Also, thank you to our studio team that puts these episodes together. Our next episode will be on November 11, Veterans Day and my birthday.

[B]

Happy birthday.

[A]

Thank you. So be sure to check it out. See you then. Say goodbye, everyone. Goodbye.

[C]

Bye, everybody.

[A]

Bye.