You’re telling me the American Dream is still within a young person’s reach? OK, Boomer. 🤪 Tell us again how much we can save by making coffee at home. We’re waiting for your generous down payment donation. 🫡💵
When it comes to financial habits, Boomers play by their own set of rules. How much of that playbook are Millennials running? 🤔
Here’s Five Fast Facts on how Boomers and Millennials manage their finances:
- 🏘️ Home Sweet Home - House with a white picket fence? A Boomer dream. Unfortunately, an increase in mortgage rates and skyrocketing home prices have Millennials bowing out. Although many Boomers locked in mortgages at rates above today’s mid-6%, Millennials just don’t have the same kind of cash flow. For that reason, they’re renting for much longer and buying their first homes in their mid-30s.
- 📱 High Tech - Millennials and Gen Z were raised on technology and grew up with the internet. They’re much more likely than Boomers to explore mobile apps and online trading platforms to manage their money. Kickin’ it old school with a traditional financial advisor still happens, but the younger generations are far more open to their robo-advisor counterparts.
- 📈 Stock Jocks - To grow their nest eggs, Boomers put money into annuities, CDs, and savings accounts. Millennials do too, but they also tend to start dipping into market investing at an earlier age than their parents. Think: target date funds inside retirement accounts and low-cost index funds.
- 💰 Money Tree - If you whacked a Millennial over the head with a pension, would they even know what hit them? The Boomer generation was far more likely to get a job with a pension (AKA lifetime income). In today’s world, only 15% of private-sector jobs come with that perk.
- 💼 Bigger Better Deal - Staying at the same job for life was common in Boomerville. However, Millennials don’t feel that same kind of loyalty. They’re much more likely to job hop to pick up new skills, fancier titles, and bigger paychecks. Today, median job tenure sits at under four years.
🔥Bottom line: As Boomers pass the torch to the younger generations, we salute you. And throw a little of that financial legacy our way! Regardless of age, if you’re a homeowner, surprise home repairs are a real pain in the rump. Need tips for handling them without breaking the bank? Check out the goodies in this article.
What’s your favorite healthy money habit?
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