I’m a Financial Planner: 7 Ways Millennials and Boomers Handle Money Differently (And Which Is Better)

The ways millennials and boomers manage money differently is often a source of snarky content for online memes and clickbait articles. But have you ever stopped to ponder exactly how these differences play out?

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GOBankingRates spoke with Stoy Hall, a certified financial planner and the CEO of Black Mammoth , to get the lowdown of the actual ways both generations spend their money. Keep reading for a deep dive into the differences and find out which generation handles money better .

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Houses

According to Hall, many boomers bought houses when they were young.

“Houses were cheap compared to how much they made,” he added.

They also planned to live in their homes for 30-50 years and had higher interest rates, but lower house prices. In comparison, not as many millennials are buying houses.

“Houses cost way more now compared to salaries,” said Hall. “Many millennials rent instead of buying,” facing not only high house prices but high interest rates too.

Who’s Doing It Better?

“Right now, renting might actually be smarter for millennials,” said Hall. “They can’t afford the huge house prices, and renting gives them more flexibility.”

Still, Hall noted that owning a home can be good in the long run.

“It’s a tough situation for millennials,” added Hall.

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College

When it comes to higher education, Hall said that most boomers went to college. Back when they were graduating, a college degree almost always led to a good job

Hall said, “College was cheap — only a few thousand dollars a year.”

Many millennials, on the other hand, still go to college, but it’s a lot more expensive than it used to be.

According to Hall, “College can cost tens of thousands of dollars for just half a year.”

For this reason, some millennials are choosing trade schools or learning skills online instead.

And unfortunately, Hall said, “Not all college degrees lead to good jobs anymore.”

Who’s Doing It Better?

Hall gave millennials the edge here because they’re thinking carefully about whether college is worth the cost.

“Learning trades or other skills can be smart because they don’t have to spend so much money on school,” said Hall.

Still, Hall said to keep in mind that “… college can still be good for some jobs.”

Kids

As Hall explained, baby boomers had a lot of babies — usually around 4 or 5. And raising children was much cheaper back then.

Nowadays, millennials tend to only have 1 or 2 kids and wait longer than boomers did to have children. This could be because of how much childcare costs have gone up.

Hall said it would be “about $200,000 to raise [one] kid until they’re 18.”

Who’s Doing It Better?

“It’s hard to say one way is better,” noted Hall. “Millennials are being careful because everything costs so much now. They’re thinking about whether they can afford kids.”

Taking costs into account is always smart, but Hall also warned it could mean missing out on having a large family (if something they want).

Jobs

Boomers and millennials handle careers differently too.

“Boomers often stayed at the same job for their whole life,” said Hall.

They received good benefits and sometimes pensions, were loyal to their companies and didn’t always get big raises.

Millennials, Hall explained, do more “job hopping” (switching jobs more often). They don’t usually get pensions, are less loyal to companies and more focused on their own careers. They also often get bigger raises when they switch jobs.

Who’s Doing It Better?

“Millennials might have the right idea here,” said Hall. “By switching jobs, they often get more money and better opportunities.”

But Hall also said, “there’s value in the loyalty boomers showed too.”

The best approach might be somewhere in the middle — stay at a job if it’s good but be willing to leave when better opportunities arrive.

Saving vs. Spending

According to Hall, boomers like to save a lot of money for retirement. Rather than spend their money in their youth, they focused on creating a big nest egg for their future.

Millennials, on the other hand, are able to save some, but also spend on experiences in the “now.” They enjoy traveling and trying new things, and are worried they might not live long enough to enjoy retirement savings

Who’s Doing It Better?

Both groups can learn from each other, said Hall.

“Boomers are right that saving is important. But millennials have a point — life is short, and it’s good to enjoy it now too,” continued Hall. “The best way might be to save some for later, but also use some money to enjoy life now.”

Cash vs. Cards

Another key difference, said Hall, is that Boomers like to use cash or checks. They sometimes don’t trust new payment methods, generally preferring to see and feel their money.

“Millennials use all sorts of ways to pay — credit cards, phones even crypto,” added Hall.

They’re also more comfortable with digital payments and enjoy the convenience of not carrying cash.

Who’s Doing It Better?

Hall doesn’t find either way to be better, just different.

“Millennials have more choices because of new technology,” said Hall. “This can be more convenient, but it’s also easier to overspend when you’re not handling real cash.”

The best approach, he noted, might be to use the new tech while also keeping careful track of your spending.

Banking

Hall also mentioned, “Boomers usually stick with one bank for life.”

They like to build a relationship with bank and often prefer in-person banking at a local branch.

However, millennials don’t care as much about staying with one bank. They typically want banks with good technology and apps, and they prefer banks that offer investing options and new services.

Who’s Doing It Better?

“[The] millennials’ approach fits better with today’s world,” explained Hall.

Banks that offer reliable tech and financial services can help people manage their money better. But just like in their careers, boomers’ loyalty isn’t bad here either.

Hall added, “Having a good relationship with your bank can be helpful too.”

In the end, who’s really better with money — millennials or boomers? According to Hall, both groups have some good ideas.

“Millennials are often more flexible and open to new ideas, which is good in our fast-changing world. But boomers’ focus on saving and stability is important too,” said Hall. “The best way to handle money is probably to use a mix of both approaches.”

This article originally appeared on GOBankingRates.com : I’m a Financial Planner: 7 Ways Millennials and Boomers Handle Money Differently (And Which Is Better)