HOW OUR DIFFERENT GENERATIONS VIEW MONEY AND THE EVENTS THAT DEFINED THEM
My grandmother saved paper twist ties and aluminum foil. I mostly throw them away. No doubt, the generation in which you’re born shapes how you view life, including money.
The word “generation” is generally about 20–30 years, when a group of people were born and lived around the same time and share similar historical, cultural, and social experiences.
Before we look at money across generations, here’s a snapshot of how we view money as we entered the new year, according to a ConsumerWise survey from McKinsey & Company.
We felt optimistic about the economy in the first quarter of 2025.
Nearly 46% of consumers felt optimistic in the first few months of the year. However, half also said that rising prices were their biggest worry.
We’re watching our pennies.
Three-quarters of those surveyed said they traded down—or made purchasing decisions based on affordability rather than for brand prestige or quality.
Baby boomers saved while millennials spent.
Only 20% of baby boomers said they intended to splurge, but millennials said they intended to buy, with 63% of high-income millennials purchasing things like travel and jewelry.
HOW DIFFERENT GENERATIONS VIEW MONEY—HOW TO SPEND IT, SAVE IT, INVEST IT
Remember, these are broad strokes within each generation. No two views on money will ever be the same.
What characteristics resonate with you?
BABY BOOMERS
About
Between 61 and 79 years old, baby boomers were once the largest generation in the U.S., surpassed by millennials in 2019.
While there’s talk of the Great Wealth Transfer, boomers are increasingly holding on to their money to compensate for increased daily living costs and to plan for healthcare and other long-term care needs.
Seems they want to have fun too. According to a Charles Schwab study, high net worth boomers say they would prefer to use their money on themselves rather than share it with their children now or leave behind an inheritance when they die.
Some formative experiences: Kennedy assassinations, the Civil Rights Movement, Vietnam war, Beatles, Elvis
Saving
You tend to make savings a priority and invest conservatively.
Many of you have a “pay-with-cash” mentality.
Investing
The largest portion of your wealth lies in stocks and bonds.
The next largest portion is from owning real estate.
Spending
You’re a health-conscious group, spending on products and services that keep you feeling well and moving.
While known for your hard work and ability to save, you’ll spend on nonessentials that enhance your lifestyle, like travel, and health and wellness.
GEN X
About
Born between 1965 and 1980, this generation was among the first to use debit cards, ATMs and cell phones—and the first to largely “self-manage” retirement through 401(k) plans.
Increasingly, the Gen X generation is supporting both aging parents and children. Because of this, you tend to view money and future security with some degree of stress. In fact, only about 14% of Gen Xers felt they had saved enough for retirement, according to a 2024 Investopedia survey.
Saving
You’re known for being careful savers in favor of long-term financial security, including retirement planning.
Investing
You tend to favor low-risk investments, such as real estate and more conservative portfolios.
Spending
You’re a group that doesn’t like to hold debt and strives to repay it through aggressive strategies, like higher monthly payments.
Some formative experiences: Watergate, the energy crisis, fall of the Berlin Wall, rise of personal computer
MILLENNIALS
Millennials surpassed baby boomers and are now the largest generation in the U.S., with an estimated population of 72.7 million. Born between 1981 and 1996, millennials are more value-oriented than previous generations and view money to further social issues, like sustainability and human rights.
They’re also motivated to achieve financial stability, having witnessed their parents struggle financially but are more distrustful of financial institutions, with many millennials starting their first jobs during the Great Recession.
Saving:
You started saving earlier than other generations, at 24, according to a Voya Financial survey.
While over half of you are saving, you’ll also dip into it for travel. (Again, experiences and supporting what you value drive your money habits more so than other generations.)
Investing:
While you’re steadily paying off “the past,” including hefty college loans, you’re also saving for the future.
About 64% of you are invested, favoring cryptocurrency (38%) and stocks (37%), according to an Investopedia Financial Literacy Survey.
Spending:
For you, money gains rewarding life experiences—to enrich life now versus waiting until you’ve built an adequate nest egg.
Millennials also value experiences and flexibility. They are less focused on traditional wealth accumulation and more on designing a life that feels rich in every way.
Some formative experiences: 9/11, computers/technology, the rise of social media, school violence
GEN Z
About
Born between 1997 and 2012, this generation believes that their financial health directly impacts their mental and physical health. They’re even willing to work additional hours (“side hustles”) to diversify revenue sources to improve their overall financial well-being. This is the first generation influenced by peer recommendations and social media when making financial decisions.
Saving:
You value responsible spending habits that reflect your lifestyle and values, prioritizing affordability with some allowance for spending on experiences and self-care.
Investing:
You’re investing at a younger age compared to previous generations, with many starting in the late teens or early 20s.
You embrace new investment avenues and technologies but also prioritizing ethical and sustainable investments.
Spending:
While more financially practical than older generations, you, too, value spending on experiences but do so with a value-driven mindset (making more mindful cost-conscious purchases to offset a splurge).
In what’s called “loud budgeting,” you’re not embarrassed to share spending budgets with friends to help stay within your means.
Some formative experiences: COVID pandemic, the Great Recession, gun/school violence, smartphones
Working with clients of every generation is one of the most rewarding parts of our job. To learn more about how we can help, contact us today.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
