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Members of the baby boomer and Gen Z generations see many things through a different lens, which is not surprising considering many boomers are the grandparents of Gen Z’ers. These differences cover everything from culture and politics to money habits.
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One reason for the money divide has to do with the vastly different economic and financial times boomers and Gen Zers grew up in. Most baby boomers came of age in a post-World War II economic boom, while Gen Z’ers have already lived through a tech meltdown, banking crisis, global pandemic and various degrees of recession.
Those dynamics helped form money habits early for both generations. Emboldened by America’s economic strength and newfound status as a global superpower, boomers tended to spend freely — at least compared with their more frugal parents and grandparents.
In contrast, many Gen Z’ers, spooked by the steady flow of worrying financial news, have adopted more frugal financial habits than their elders.
Beyond that, boomers grew up in a 20th century financial world where you wrote checks to pay bills and drove to the bank to make a deposit, whereas Gen Z’ers have had access to e-commerce and digital banking their whole lives.
One result is that Gen Z’ers have eschewed many of the financial rules that governed their boomer elders. Here are five boomer money habits that Gen Z largely resists.
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1. Prioritizing Home Ownership
A survey of generational money habits conducted by financial services firm Empower found that baby boomers are the only generation to rank homeownership as a “key factor” in building wealth. Meanwhile, Gen Z was 60% less likely than other generations to view homeownership as a primary means to build wealth.
2. Visiting a Bank Regularly
Regardless of generation, nearly half of Americans (46.3%) visit their bank a few times a year or less, MarketWatch reported. While older generations, including boomers, still regularly visit physical bank locations, Gen Z is the generation most likely to have never visited a branch because of their focus on digital banking.
3. Consulting With Financial Advisors
Nearly half of baby boomers seek money advice from professional financial advisors, according to MarketWatch. In contrast, a large percentage of Gen Z’ers (43.5%) forego consulting with advisors and instead get their financial advice from social media platforms such as TikTok and Instagram.
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4. Spending Money to Reflect Social Status
Many boomers have been motivated by prestige and work accomplishments and are therefore more materialistic than other generations, according to a blog from Spero Financial, a South Carolina-based credit union. This was often a form of “quiet rebellion against the frugality [boomers] experienced growing up,” leading boomers to spend more on housing and retail purchases. That differs from Gen Z, who are the “least likely” post-boomer generation to take on unnecessary debt and are also the most likely to remain living at home.
5. Heavy Use of Credit Cards
As previously reported by GOBankingRates, baby boomers seem to be less spooked by financial worries than younger Americans. An analysis of Bank of America credit and debit card expenditures found that older households are spending money at a considerably higher rate than Gen Z and other younger generations. That includes using credit cards to make purchases.
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This article originally appeared on GOBankingRates.com: 5 Boomer Money Habits That Gen Z Resists
