From Boomers to Gen Z: A Generational Look at Money Habits and Financial Choices

What financial habits have helped you most in life?

Which ones have held you back?

No matter how you answer those questions, your money habits have a lot to do with how you grew up.¹

They also can be shaped by when you grew up.

That’s because each generation can have a distinct perspective and different experiences shaping their approach to money and financial choices.

With that, every generation can bring its own strengths and vulnerabilities to the table when it comes to both personal finance and generational wealth building.

Here’s why, along with a closer look at how money habits and mindsets can vary by generation.

Baby Boomers: The Traditionalists

Born 1946–1964

Baby Boomers tend to make savings a top priority, with an eye toward conservative investments. Often disciplined and experienced at saving up for big-ticket items, many Boomers have a “pay-with-cash” mentality, looking to avoid new debt whenever possible, even if it means waiting to buy something until they can pay for it in full.

Boomer Financial Strengths

1. Tend to have a higher degree of financial literacy from years of experience.
2. Value stability, often building equity through homeownership.

Potential Vulnerabilities

• May be reluctant to try or adopt new financial technologies.
• May struggle with rising healthcare costs and outliving retirement savings.

Most likely to: Have used a piggybank and a checkbook.

Gen X: The Balancers

Born 1965–1980

Sandwiched between parents and children, Gen Xers tend to have several irons in their financial “fire,” such as balancing debt with an eye toward the future. With that, Gen Xers often value financial independence and knowledge while being open to new opportunities, as long as they aren’t too risky.

Gen X Financial Strengths

1. Savvy with credit and handling competing financial responsibilities.
2. Willing to adapt and learn new strategies for wealth building.

Potential Vulnerabilities

• May carry significant debt, including credit cards, student loans, and mortgages.
• May shortchange their own retirement savings to take care of what’s deemed to be more “immediate” needs.

Most likely to: Have used the first mobile banking apps.

Millennials: The Digital Pioneers

Born 1981–1996

Valuing experiences over material possessions, Millennials tend to put their money where their values are, taking the time to learn about different investment options. They’re also technologically proficient and open to new opportunities, especially when they have the chance to “get in first” — even if that means a little more risk is involved.

Millennial Financial Strengths

1. Tend to be early adopters of new fintech and apps.
2. Often advocate for their values with their financial choices and investments.

Potential Vulnerabilities

• May face challenges in becoming homeowners.
• May experience delayed wealth-building opportunities.

Most likely to: Own cryptocurrency and/or other digital currencies.

Gen Z: The Hustlers

Born 1997–2012

Embracing side hustles, the gig economy, and influencer culture, Gen Zers typically have an eye toward early financial independence. They’re willing to try new ventures, including “hacks” that can get them ahead.

Gen Z Financial Strengths

1. Starting financial planning earlier than previous generations.
2. Exceptionally tech-savvy, leveraging multiple apps and platforms for investing, budgeting, and saving.

Potential Vulnerabilities

• May have limited experience with personal finance.
• May rely too much on digital mechanisms, possibly increasing exposure to scams and other risks.

Most likely to: Use mobile pay (i.e., use their phone to pay for items).

Better Money Habits & Choices at Every Generation

How different generations view, handle, and think about money can all be valuable in their own ways — and none of them are “good,” “bad,” or “better.”

Instead, they can show us alternatives to how we approach finance, helping us reflect on our money habits and possibly see new options to refine our choices for better outcomes.

Another effective way to get a fresh perspective and experienced support for bigger financial decisions, regardless of your generation, is to work with a trusted financial professional.

Sources

1. Consumer Finance, 2021 [URL: https://www.consumerfinance.gov/consumer-tools/educator-tools/youth-financial-education/learn/financial-habits-norms/]

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