Money myths by generation are everywhere. Some say Gen Z doesn’t know enough, millennials can’t catch a break, and boomers stick to what they know. But the real story? It’s far more interesting than the stereotypes.
Every generation gets a label, but the details are in the data. Financial literacy isn’t just about knowing how to save -it’s about adapting to the world you’re in. Each generation faces unique challenges, shaped by the economy, technology, and access to financial education. With GWI data, we can see what’s really going on beyond the headlines to get the full picture of how people actually spend, save, and invest.
Let’s have a look at where the generational money myths end, where the data-backed truth begins, and what this means for your next strategy.
What’s the smartest money move you’ve made? And what’s the one habit you wish you could undo? The way you answer probably depends on when and where you grew up.
Every generation brings a different perspective to money. Economic booms, recessions, and tech shifts all shape how people save, invest, and manage their finances. But at the end of the day, they’re all after the same thing - financial security and a shot at building wealth. The difference? How they learn about it.
Take banking, for example. Gen Z is the most likely generation to have a digital-only bank account (52%, which is 21% more than the average consumer), while baby boomers stick with traditional banking (97% have a standard bank account, 11% more than the average consumer). When it comes to managing money online, Gen X leads the way, with 37% using the internet for financial management.
And when it comes to investing? Each generation has its own approach from millennials investing in gold to Gen Z is thinking more “virtual”(they’re 170% more likely to turn to cryptocurrency than baby boomers).
So, how do these generational money habits play out in everyday life? Let’s break it down.
Gen Z - the group born between 1997 and 2012 - has been called “The Hustlers” for a reason. They’re tech-savvy, entrepreneurial, and start financial planning earlier than previous generations. Some are even investing while still in their teens.
When it comes to learning about money, more than half of Gen Z (60%) use the internet to find financial information whether that’s a TikTok breakdown of credit scores or a deep dive into investing on YouTube. They’re comfortable using multiple platforms and apps to budget, invest, and save, making digital finance their default.
But being digital-first has its downsides. Gen Z is also the most likely to report having a low household income (39%, 24% more than the average person), and nearly half (48%) of Gen Z adults don’t have a credit card. Without traditional financial experience, they may rely too much on digital solutions. This can leave them vulnerable to scams, risky investments, and financial gaps that older generations learned to navigate offline. Student debt is another major hurdle for many, adding pressure to an already tight financial situation.
That said, they’re optimistic about their financial future. Gen Z is 15% more likely than the average consumer to believe their finances will improve in the next six months. And they’re eager to learn, too. They’re 28% more likely than average to pay for financial courses and programs online.
Right now, though, money management is still a work in progress. Only 3% of Gen Z manage budgets as part of their job, and they’re 63% more likely than average to not know how much of their income goes to expenses.
When it comes to spending, Gen Z has a cautious mindset.78% say they prefer to be careful with their money, and 71% would rather save up and wait before making a purchase. But there’s still a risk-taking side. They’re 43% more likely than baby boomers to sacrifice spending to buy a product sooner.
For millennials, money management is a balancing act. They’re saving for a home, planning for retirement, and trying to invest wisely while dealing with rising costs and economic uncertainty. Despite the outdated stereotype of reckless spending, millennials are the most investment-focused generation. They’re 7% more likely to be interested in investments than the average consumer. And when it comes to gold? 23% of millennials invest in it - 20% more than any other consumer group.
Their financial habits aren’t just about personal goals.They’re shaped by the world around them. Millennials make up 60% of global crypto users, helping drive its mainstream adoption. And for many, financial management isn’t just personal,it’s also professional. The proof? Millennials are 33% more likely than the average internet user to manage a budget as part of their job.
With this focus on financial responsibility, it’s no surprise that 39% of millennials have used banking, investment, and insurance apps in the last month. But while they’re investing in their future, homeownership remains a challenge. Since Q3 2024, there’s been no increase in the percentage of millennials planning to buy a home, reflecting the ongoing affordability crisis.
Bills and living costs continue to be a major stressor.Millennials are 8% more likely to spend between 51-75% of their salary on expenses, which makes it even harder for them to save for a home.. They’re looking for ways to navigate these challenges, with a growing demand for expert guidance. That could be why 21% of millennials prefer attending webinars run by financial experts, making them 22% more likely to choose this option compared to the average internet user.
Gen X and baby boomers may both value financial security, but they have slightly different approaches. For Gen X, financial confidence is shaky.67% say financial security is their top priority, just behind baby boomers at 70%. They’re the most likely generation to use the internet to manage their finances (37%), but they still take a cautious approach to investment and debt management.
Boomers stick to what’s tried and tested. Only 21% of baby boomers are interested in investments, making them slightly less likely than the average consumer to put their money into financial markets. Born between 1946 and 1964, they were raised in an era where paying with cash, avoiding debt whenever possible, and waiting to make purchases until they could afford them outright was the norm. This approach has helped many build financial stability over time, but it also means they’re reluctant to use mobile banking or digital finance tools.
The gap between generations becomes even clearer when looking at digital banking habits. Boomers are 27% less likely to use mobile payment systems like Apple Pay and 29% less likely to track their spending on their phones compared to Gen X. While Gen X is more adaptable to online finance, they still lack confidence in their financial situation, with many feeling more uncertain than the generations on either side of them.
Retirement planning is another area where boomers and Gen X have faced challenges. The 2008 financial crisis wiped out many boomers’ retirement savings, and low interest rates since then have made it difficult to rebuild. Economic uncertainty has led to a reluctance to reinvest, keeping many boomers in a holding pattern.
For those who did build wealth, the state of the economy at the time played a major role. Many boomers benefited from post-WWII economic growth, affordable housing, strong stock market returns, and high-interest savings. With decades of financial experience, they tend to have more overall stability than younger generations.
But stability doesn’t mean security,especially in the digital world. Boomers are less familiar with recent financial technologies and are more vulnerable to online scams. 97% of them still have a traditional bank account, so their digital finance adoption lags behind. And the risks are real.In 2023, seniors lost over $3.4 billion to financial scams, a staggering 600% increase from 2018. Investment fraud, phishing, and health insurance scams are all on the rise, highlighting the need for stronger financial education tailored to older consumers.
Gen X is facing its own digital risks. 71% of Gen Xers have experienced a financial scam or fraud, making them just as vulnerable to online deception as boomers. While they’ve had more exposure to digital tools, many grew up before the rise of social media and online banking, leading to a healthy dose of skepticism when it comes to modern finance.
The divide between digital natives and financial rookies is real,but for brands - it’s an opportunity. The key? Fintech. While financial technology has made money management easier, faster, and more accessible, not everyone is keeping up at the same pace. That’s where consumer insights come in.
For Gen Z, digital learning is second nature. 39% have learned financial concepts from social media like TikTok and YouTube, and more than 34% credit these platforms specifically. Compare that to older generations, who are more likely to rely on traditional financial education or personal experience. Even so, interest in investing spans all generations.21% of baby boomers are still interested in investments, though at a slightly lower rate than the average consumer.
So, what does that mean for your strategy? Technology is already changing how we work, invest, and manage money. Brands that offer tailored financial education, accessible digital tools, and cross-generational solutions will be the ones to win consumer trust.