Boomers and millennials have followed very different financial paths as a result of the decades in which they came of age, entered the workforce, and more. Boomers built wealth with stable jobs, cheaper housing and decades on the market, then protected it with habits like paying themselves first and avoiding high-interest debt. Millennials came of age during the Great Recession, have more student loans and face higher housing costs, but they are rushing to automate, use low-cost index funds and shop for better rates from their phones.
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Here are seven boomer moves worth copying to get ahead financially, although the odds may be a little more stacked against millennials.
Boomers are much more likely than younger workers to have saved for retirement and contributed through their work plans, according to the Employee Benefit Research Institute’s 2024 Retirement Confidence Survey. Although many millennials got off to a rocky start in the early days of the Great Recession, saving for retirement should be a priority. Automate your retirement funds so you don’t have to stress when that day comes.
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Those sweet employer matching funds some companies offer can grow your savings tremendously over time. According to Vanguard, boomers are more likely than younger workers to defer more money, thus earning a greater match over time.
Plus, the older you are, the more you can contribute to save tax-deferred. Millennials can learn from their elders and increase their contributions once they turn 50 or older.
If your job is more than manageable, it may be worth holding on in the long run, especially if it puts you in position for a higher salary, better benefits, or more time to earn employer matching funds. Boomers are more likely to keep their jobs longer than millennials, according to the Bureau of Labor Statistics. Millennials may be hungry for something new, but in an economic landscape where job growth is stagnant, it might be smart to stop there.
Older generations use less available credit on average, indicating lower renewable utilization than their younger peers, while millennials’ credit card balances grew faster than any other generation in 2024, according to Experian. High-interest debt not only ties up your money in monthly payments, but it costs you more money over time in interest charges.