“You just don’t get it!”
This phrase has been uttered by nearly every parent and child. Sometimes our differences can simply be attributed to what generation we grew up in. Each generation displays its own personality. Consider these differences when it comes to money and debt:
The Silent Generation (1925-1954) – Grew up influenced by The Great Depression and WWII. Not surprisingly, they are cautious savers. They prefer to pay cash rather than go into debt.
Baby Boomers (1946-1964) – Tend to rebel against the frugality of their parents by spending more, especially using credit cards and loans. They take pride in their work ethic and spend accordingly.
Generation X (1965-1980) – Have used cash, checkbooks, and credit cards for spending. They can see money as a tangible thing (like previous generations), as well as a concept reflected in bank statements and spreadsheets (like future generations). They tend to spend more on large purchases and carry a large amount of credit card debt.
Millenials (1981-1996) – Spend less on material goods and more on experiences. Buying a home or a car is much more difficult than in previous generations. They carry quite a bit of debt and emphasize luxury and quality in their spending.
Generation Z (1997 and later) – Track their finances on apps and schedule everything. They are more reluctant to take on debt than previous generations. They are still spenders, but also conscious about saving for retirement.
There is no generation that got it all right or all wrong. Instead of gloating about our successes and making fun of others’ failures, we should be willing to listen and learn from each other. Grandparents should help grandkids learn to save; and grandkids should help grandparents use financial technology. When appropriate, parents should incorporate children into family financial decisions; and children should feel free to ask parents about money.
Americans are notoriously independent and tight-lipped about finances. It’s time we open up, tell our stories, celebrate each other’s successes, and learn from each other’s failures. Let’s normalize having healthy financial discussions so we can set future generations up for success.
Mark Olson
President/CEO
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