According to Bank of America statistics, older Americans are spending more than younger generations, which may be attributed in part to the comparatively favorable 8.7% cost-of-living-adjustment (COLA) for the recipients of Social Security this year 2023.
Boomers vs. Millennials on Spending Money (Photo: Kiplinger)
Money Habits of Boomers and Millenials
Money habits of various generations vary on the primary costs they consume on a daily basis; younger adults are more likely to encounter rising rental rates and house prices as they transport around; and boomers expressed ambiguity about whether their retirement savings were adequate to sustain them through retirement.
The age gaps were evident in data that indicated overall consumer spending has been fairly consistent, according to a published article by Kiplinger. The bank reports that while spending among millennials and Gen Z fell 1.5% in May, it grew 2.2% among baby boomers.
READ ALSO: 1 in 5 Boomers are Delaying Retirement Due to Concerns of Recession
Younger Generation overspends because of Peer Influence
Spending excess money today primarily goes into eating out, drinking out, going out on the town, traveling, taking vacations, and celebrating the birthdays of some younger generations. On occasion, people spend a lot of money on their outfits and other personal expenses. Today’s trends are so pervasive that every generation takes advantage of the chance to follow them.
According to the poll, 36% of Gen Z and millennials said they have a friend that encourages them to spend too much money. To safeguard their finances, this is leading to debt and occasionally terminating friendships.
88% of millennials and 80% of members of Generation Z who have these extravagant friends have accrued debt as a result of hanging out with them. In this manner, it is important to know our priorities, wants, and needs. Whatever generation we may belong to; every day is a challenge that we need to conquer.
READ ALSO: Let’s argue about millennial and boomer spending habits!
