While Boomers may swear by a handful of core financial values, some of these tips reveal a dated understanding of today’s job economy. Read on to learn how Millennials are paving their own way.
Save for Retirement, Even if It Means Sacrificing Now
Many boomers believe in prioritizing long-term financial security by saving for retirement, even when it comes at the expense of immediate gratification. Millennials, on the other hand, often opt for (expensive) experiences and value a healthy work-life balance over saving every penny for retirement.
Buy a House as Soon as Possible
Boomers often view homeownership as a crucial step towards financial stability and wealth building. However, millennials may face obstacles such as high housing costs, student loan debt, and a desire for flexibility that make them less enthusiastic about rushing into homeownership.
Stick with a Steady Job for Decades
Older generations tend to emphasize the importance of maintaining loyalty to a single employer because of the stability it brings. Millennials, on the other hand, value career flexibility and are more apt to seek out opportunities for growth, fulfillment, and work-life balance, even if it means changing jobs more frequently.
Don’t Rely on Social Security
While some boomers will stress the importance of saving independently for retirement — so as not to rely solely on Social Security benefits — Millennials may have concerns about whether the system can realistically continue as it exists today. As a result, they’re more likely to prioritize other forms of financial planning.
Invest in Traditional Financial Institutions
Boomers tend to have more trust in traditional financial institutions such as banks and stocks. Millennials however, were influenced by experiences like the 2008 financial crisis, and may instead lean towards alternative investment options, digital currencies, and socially responsible investing.
Avoid Taking on Debt
Though Boomers generally advocate for minimizing debt and living within one’s means, many Millennials are more familiar with high student loan debt and the rising cost of living. As a result, they may be more comfortable with strategically using debt, such as mortgages or business loans, to achieve their financial goals.
Work Hard and You’ll Be Successful
In the past, it was easy to attribute financial success to hard work and perseverance. That said, the Millennials who have witnessed economic uncertainties and inequalities, may believe that systemic factors and privilege play a significant role in determining financial outcomes.
Retire at 65
Traditionally, the retirement age has been set at 65, but Boomers may encourage earlier retirement planning. Millennials, with concerns about the affordability of retirement and longer life expectancies, may envision a different retirement timeline.
Health Insurance through Employer
In the past, Boomers often relied on employer-provided health insurance. Today, thanks to a changing job market and the rise of gig economy work, Millennials may feel more comfortable finding alternative healthcare options through the Affordable Care Act or other freelance associations.
Invest in Traditional 401(k) Plans
Previous generations often emphasized the importance of contributing to traditional 401(k) retirement plans. Millennials, seeking more flexibility and control over their investments, may prefer alternative retirement vehicles like Roth IRAs or self-directed investment accounts.
Delay Gratification for Financial Stability
Boomers value delayed gratification as a means to achieve long-term financial stability. Meanwhile, Millennials have come to be influenced by a more immediate and digital-driven culture, so they may prioritize enjoying life in the present while still planning for the future.
Pensions Provide Security
Many boomers experienced the benefits of employer-provided pensions. Millennials, facing a decline in pension availability and relying more on individual retirement savings, may view pensions as a relic of the past.
Invest in Blue-Chip Stocks for Long-Term Growth
Boomers often gravitate towards established, blue-chip stocks as a reliable long-term investment strategy. Millennials, seeking higher-growth potential, may be more inclined to invest in technology, renewable energy, or socially conscious companies.
Work Longer for a Bigger Nest Egg
Some boomers may advocate for working longer to increase their retirement savings. However, because Millennials value a healthy work-life balance and personal fulfillment, they may be less willing to sacrifice their time and well-being for the sole purpose of accumulating wealth.
Focus on Material Possessions as a Measure of Success
Boomers often associate material possessions with success and financial stability, but millennials have come to be influenced by minimalist trends. As a result, they’re more likely to focus on experiences over possessions and may place less importance on material wealth while prioritizing financial freedom and personal fulfillment.
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