Lorraine Williamson
For many young Spaniards, higher education has become less a pathway to prosperity and more a stepping stone to financial uncertainty.
Despite earning more degrees than any previous generation, Millennials and Generation Z in Spain are finding it harder to achieve the financial stability that was once almost guaranteed for their parents.
The gap between education and financial reality has never been wider. Low wages, insecure contracts, rising rents and an unforgiving housing market have left many in their 20s and 30s unable to afford the very milestones that defined adulthood for earlier generations.
University degrees no longer guarantee stability
While Spain has seen a surge in university graduates over the past few decades, academic qualifications no longer carry the same weight in the job market. A significant proportion of highly educated young Spaniards now work in roles that don’t require their degrees, with more than a third considered overqualified for their positions.
Temporary contracts and precarious work are widespread. Many young workers are employed on short-term or part-time contracts, offering little in the way of job security, career progression or long-term financial planning. According to Eurostat data, 30-year-olds in Spain today earn around 20% less than their parents did at the same stage of life, even after adjusting for inflation.
Youth unemployment remains one of the highest in Europe, hovering close to 25%, and entry-level salaries often fall far short of rising living costs.
Independent living increasingly out of reach
The difficulties extend beyond the workplace. Soaring rents and housing prices have made it increasingly difficult for young Spaniards to move out of the family home. According to the Spanish Youth Council, less than 15% of young people are financially independent — a figure not seen since before the 2008 financial crisis.
Those hoping to buy a home face even greater obstacles. Rising property prices require potential buyers to save for many years simply to afford a deposit. On current trends, a young person would need to put aside 16% of their salary every year for two decades just to raise the down payment.
In the rental sector, prices surged again in early 2025, climbing more than 12% in the first quarter alone. For many, renting has become a long-term necessity rather than a stepping stone to home ownership.
Minimum wage rises, but self-employed still struggle
Although Spain’s minimum wage has risen to €1,184 per month in 2025 (spread across 14 annual payments), many young workers — particularly the self-employed — continue to struggle. Roughly one in three self-employed young people earn less than this amount, making it difficult to cover even basic living expenses.
The promise of entrepreneurship and flexible work has, for many, failed to deliver financial security.
The growing wealth divide between generations
The most striking contrast lies in asset accumulation. While older generations have seen their wealth grow steadily, younger Spaniards are being left behind. Research by the Banco de España shows that Spaniards born around 1960 had accumulated around €200,000 in net wealth by their mid-40s. By contrast, Generation X managed just over €100,000. Many of today’s under-40s have built up very little in the way of savings or assets.
Debt levels have also climbed, while access to affordable credit remains limited for younger borrowers. The gap between older and younger generations is widening, with rising inequality not just in wages but also in home ownership, savings and long-term investment potential.
A generation with limited prospects
What was once considered a predictable path to adulthood — completing education, securing stable work, buying property, and starting a family — is now becoming increasingly elusive.
Young Spaniards are entering a world marked by economic instability, rising inflation, stagnant wages and limited opportunities. For the first time, many feel they are likely to be poorer than the generation before them, despite being better educated and more qualified.
Unless major structural reforms address the housing crisis, job insecurity and wealth inequality, Spain risks seeing an entire generation permanently shut out of financial stability.
Spaniards least worried about defence, prioritise education