Boomers — they make up almost one-quarter of the American population. Born after the difficulties of a devastating war, they’ve lived through both economic booms and recessions.
They’ve thrived in stable economies and generated enough wealth to navigate failing ones. Perhaps most importantly, they’ve amassed massive wealth throughout the years.
If boomers have so much saved, what makes them so good at avoiding wasting money and holding on to their wealth? Keep reading to find out.
Make Money: 8 things to do if you're barely scraping by financially
1. They’re living longer
The boomer generation’s life expectancy is increasing. As they continue to live longer, they’re less inclined to make large purchases because they want financial security over the long term, making sure they have enough money for retirement.
Some boomers may worry about their future expenses, which encourages them to spend lightly in the present day.
Own a car? Here's 7 warning signs you're paying too much for car insurance. 2. They’re worried about their futures
They may fear running out of money — these days, with inflation, things like end-of-life expenses and nursing homes are extraordinarily expensive.
With a longer lifespan comes a risk of illness, so living on a tighter budget helps prevent boomers from getting caught with no funds in case of a medical emergency.
3. They’re investing instead
Rather than spending their money, some boomers have turned to investing. They invest in the stock market as it continues to grow.
With the availability of new technology, boomers have access to financial resources that can help them learn how to grow their stock portfolio and increase their wealth in other ways.
Avoid these money mistakes: 9 dumbest things smart people waste money on
4. Competing demands for money
The world we live in now is much different from the one in which the baby boomers came of age. Buying items has never been more accessible, with online marketplaces and whatever you need delivered right to your door. Some boomers may feel overwhelmed with options.
When there are too many things to purchase, some boomers decide on nothing and instead stick to what they’re comfortable with.
5. Their budget is a habit
Some boomers might not want to spend their money because they choose to live frugally, and they’ve been doing it so long that it’s now a habit. Some boomers may have other expenses, like mortgages or house repairs.
Because some boomers are already accustomed to a strict budget, they might not want to spend the wealth they have accumulated.
6. A different relationship with money
Similar to their commitment to routine, boomers may have a different relationship with money than their successors. Born in the boom after World War II, boomers spent their younger years in a strong economy and benefitted from job stability.
They’re traditionalists and believe that their hard-earned money should not be squandered and spent on immediate wants.
Get Out of Debt for Good: Try these 6 clever ways to crush your debt 7. Spreading generational wealth
Generational wealth continues to be a highly debated topic as older generations are spreading generational wealth earlier and earlier.
Spreading generational wealth while still living may positively affect younger family members but prevents boomers from making large purchases or spending liberally.
Having worked all of their lives for their money, it is no surprise that boomers want to be able to provide for their families.
8. Supporting adult children
With the state of the economy and high cost of living, some boomers may still be housing their adult children and grandchildren.
Though most boomers enjoy having their children around and family provides specific support, this may also prevent them from making large purchases. The budget may be a little tighter because there are more mouths to feed in the home.
9. Their children support them
Alternatively, some boomers may be financially supported and cared for by their children.
Boomers won’t have to worry about spending money on rent, groceries, or other costly living expenses when living with their children. They won’t be inclined to spend money on expenses such as appliances or entertainment with their needs met.
Grow Your $$: 11 brilliant ways to build wealth after 40
10. Leftover pandemic routines
The coronavirus pandemic altered the way many boomers operated, and some still have not adjusted to post-pandemic conditions.
During lockdown, many boomers strayed away from big-ticket purchases that involved close contact with others, like cruises, and some of those habits from 2020 remain.
11. They have fewer subscriptions
While younger generations overspend on streaming platforms and monthly music subscriptions, boomers have a more old-school approach.
Many boomers are still watching cable television, eliminating the need to pay multiple subscription fees to watch the show you want.
While younger generations spend over $10 a month on Spotify or Apple Music, boomers may opt for more traditional ways of listening to music, like CDs or record players. By sticking to cost-effective entertainment options, boomers spend less each month.
Bottom line
Even though boomers have a reputation for being critical of other generations and unaware of the difficulties of spending and making money for younger generations, boomers aren’t as frivolous and spendy as some may think.
Many boomers choose not to spend their massive wealth to provide themselves with peace of mind and a stress-free retirement . Will the younger generations one day accumulate riches, too?
Money tips that can work for everyone
No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.
Focus on paying off your debt. Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.
Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.
Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).
Local News
