6 Surprising Money Lessons Boomers Can Learn From Gen Z and Millennials
Every generation has its wisdom and something we can all stand to learn a little something from. Take baby boomers, for instance. There are many money lessons to learn from both millennials and Gen Z.
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“Younger people often prioritize experiences over material goods, which leads to more sustainable spending,” said Rhett Stubbendeck, CEO and founder at Leverage Planning. “This mindset shift can help boomers cut unnecessary expenses and redirect funds toward savings or experiences that enrich their lives.”
Below are more surprising money lessons boomers would be wise to heed from the younger generation.
Also see lessons millennials can learn from boomers’ mistakes.
Prioritizing Digital Tools for Financial Management
“I’ve found that younger generations are adept at using digital tools for budgeting, investing, and tracking expenses,” said Justin Godur, finance advisor and founder of Capital Max.
Experts note this is a significant lesson: The savvy use of technology in managing finances. Younger generations frequently utilize mobile banking, investing apps, and financial management tools. These resources help them track their financial activities effortlessly and make informed decisions swiftly.
“By embracing apps like Mint for budgeting or Acorns for micro-investing, boomers can gain better control over their finances,” Godur said. “These tools have made my financial life more efficient, and they can do the same for others.”
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Apps for budgeting, investments and digital payments are standard tools the younger generation utilizes, which not only saves time but can significantly enhance financial accuracy and oversight.
Dennis Shirshikov, head of growth at Go Summer, said, “One key lesson that boomers can adopt from younger generations is embracing technology to manage finances. Millennials and Gen Z are adept at using financial apps for budgeting, investing and saving, which increases their financial literacy and helps them make informed decisions.
“For instance, apps like Mint for budgeting or Robinhood for investing can offer boomers new ways to optimize their financial health without requiring extensive background knowledge.”
Embracing the Side Hustle
“Many young people have embraced the idea of multiple income streams through side hustles,” Godur said. “I’ve seen how this can lead to greater financial independence. Boomers can benefit from exploring freelance work or starting small businesses, diversifying their income and building wealth outside traditional 9-to-5 jobs.”
Stubbendeck said the gig economy is a good lesson for boomers to pick up.
“Millennials and Gen Z often diversify their income through side hustles alongside their main jobs,” he said. “For example, a millennial client of mine boosted her primary income with freelance graphic design work.”
He said this approach not only increases earnings but also provides a financial safety net. “It’s a strategy that can be especially useful for boomers looking to enhance their retirement savings or extend their working years.”
John F. Pace, CPA at Pace & Associates, added, “Another noteworthy practice from the younger generation is their focus on diversified income streams.”
Beyond traditional employment, he said, many engage in gig economy roles, freelance projects and digital content creation, all of which contribute to more resilient financial portfolios.
“For instance,” he said, “numerous younger clients have leveraged platforms like Etsy or freelance coding to generate substantial secondary incomes, enriching their savings and investment plans.”
Focusing on Experience, Not Excess
“I’ve noticed that younger generations often value experiences over possessions, and this has taught me the importance of spending wisely,” Godur said. “By focusing on experiences that bring joy and cutting back on unnecessary material purchases, boomers can save money and improve their quality of life.”
Dana Ronald, president of Tax Crisis Institute, added, “They prioritize experiences over possessions, which can lead to more fulfilling and less materialistically driven lives.”
He said adopting this practice can significantly enhance financial security and wealth building for boomers.
Focusing on Social Responsibility and Impact Investing
According to Pace, there’s an inclination toward social responsibility and impact investing among the younger generations.
He said, “They often prefer to invest in companies or funds that are not just financially promising but also socially and environmentally conscious, aligning their financial goals with personal values.”
He said this perspective fosters a wider view of what wealth can accomplish beyond personal gain and promotes a holistic approach to wealth building that considers long-term societal impact.
“Boomers can learn immensely from these behaviors by integrating technology to manage their finances more effectively, considering alternative income streams to enhance financial stability, and aligning investment choices with broader social and environmental impacts to ensure a legacy that extends beyond mere financial growth,” Pace said.
Living Within Your Means
“Gen Z is not afraid to do what it takes to live within their means,” said Melanie Musson, a finance expert with Clearsurance. “They’ll move back with their parents, live in a van or share a home with several others. Their lifestyle expectations are flexible, and they are willing to sacrifice to meet their goals.”
Being Investment Savvy
According to Shirshikov, the younger generation’s approach to investing, particularly their openness to non-traditional investment opportunities like cryptocurrencies and crowdfunding platforms, is a major shift.
“Gen Z and millennials are investment savvy,” Musson said. “They’re willing to play around with investments and manage their portfolios using apps. They’re hands-on with their assets.”
Gen Z and millennials diversify their investment portfolios beyond traditional stocks and bonds, exploring cryptocurrencies and ESG (Environmental, Social, and Governance) investments.
“This broadened investment strategy can mitigate risks and potentially increase returns,” Ronald said. “In my decades of assisting individuals with tax and financial planning, I’ve observed that younger generations, particularly Gen Z and millennials, have embraced financial literacy and innovative investment strategies.”
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