Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.<\/p>\n
Boomers have amassed a lot of wealth over the years \u2014 indeed, they\u2019re considered the wealthiest generation to have ever lived.<\/p>\n
About 73% of wealth in the U.S. is owned by Americans over 55 (including boomers and the Silent Generation), according to Federal Reserve data (1).<\/p>\n
So why doesn\u2019t their financial advice make sense to millennials?<\/p>\n
For boomers (those born between 1946 and 1964), \u201ca unique historical situation \u2014 strong economic growth, affordable housing markets and booming equity markets \u2014 allowed them to build up a handsome fortune,\u201d according to an Allianz report (2).<\/p>\n
But millennials (those born between 1981 and 1996) have had a \u201crougher ride,\u201d says the report, since \u201cthey were hit by one crisis after another.\u201d<\/p>\n
So what worked for boomers may simply not apply in today\u2019s world \u2014 and that could be why there are some money habits that millennials just don\u2019t get. Here are seven of them.<\/p>\n
Why rent when you can buy? For many boomers, \u201cadulting\u201d meant buying a house. Renting was seen as throwing money away.<\/p>\n
According to a survey by Clever Real Estate, 84% of boomers see owning a home as a symbol of financial security and 65% say owning has given them stability (3).<\/p>\n
But when boomers began adulting, homeownership was well within reach. In 1988, when the average boomer turned 33, the median home sale price was $110,000 (4). And the median household income was $27,230 without adjusting for inflation (5).<\/p>\n
Millennials, on the other hand, are faced with high home prices and mortgage rates (relative to income), which in many cases is pricing them out of the market \u2014 especially during a time of job instability and economic uncertainty (6).<\/p>\n
For millennials, renting may be their only option thanks to the high cost of a down payment, but some are finding other ways to break into the valuable real estate market.<\/p>\n
Crowdfunding platforms like Arrived<\/a> are changing the game for generations that don\u2019t want to \u2014 or can\u2019t afford to \u2014 buy real estate. It lets you buy a stake in rental properties and earn dividends \u2014 no down payment required.<\/p>\n Backed by world-class investors like Jeff Bezos, Arrived\u2019s easy-to-use platform offers SEC-qualified rental homes and vacation rentals. Their flexible investment options allow both accredited and non-accredited investors to benefit from this inflation-hedging asset class with ease.<\/p>\n Just browse their vetted properties and when you find one you like, you can invest in it with as little as $100<\/a>.<\/p>\n Another great option is mogul. This real estate investment platform offers fractional ownership in blue-chip rental properties<\/a>, which gives investors monthly rental income, real-time appreciation and tax benefits \u2014 without the need for a hefty down payment or 3 a.m. tenant calls.<\/p>\n Founded by former Goldman Sachs real estate investors, the mogul team handpicks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.<\/p>\n Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours<\/a>, with investments typically ranging between $15,000 and $40,000 per property.<\/p>\n Every investment is secured by real assets, not dependent on the platform\u2019s viability. Each property is held in a standalone Propco LLC, so investors own the property \u2014 not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.<\/p>\n Getting started is a quick and easy process. You can sign up for an account and then browse available properties<\/a>. Once you verify your information with their team, you can invest like a mogul in just a few clicks.<\/p>\n Read More: I\u2019m almost 50 years old and don\u2019t have retirement savings. Is it too late to catch up?<\/a><\/p>\n Read More: Non-millionaires can now invest in this $1B private real estate fund starting at just $10<\/a><\/p>\n Many boomers keep a portion of their retirement savings in \u201csafe\u201d but low-yield accounts, such as certificates of deposit (CDs).<\/p>\n Some may even leave their money in a traditional checking account (or even in cash), since they don\u2019t want to gamble with their money.<\/p>\n Perhaps this is because, about four decades ago, CDs had a much higher average percentage yield (APY). In 1984, for example, the average three-month CD rate was over 10% (7). That\u2019s pretty much impossible these days. Instead, returns on that \u201csafe\u201d account may not outpace inflation, meaning the money loses its purchasing power over time.<\/p>\n However, there\u2019s still value in having some money in a \u201csafe\u201d account, especially as a rainy day fund. And since millennials came of age as the internet did, they may be more comfortable with online and mobile tools to manage their money, including looking for the best yield rates and investment opportunities.<\/p>\n That\u2019s where an online-only, high-yield account like a Wealthfront Cash Account<\/a> can come in. Offering competitive interest rates and a tech-savvy platform, the account can be a great place to grow your emergency fund.<\/p>\n A Wealthfront Cash Account currently offers a base variable APY of 3.30%, and new clients can get a 0.75% boost during their first three months on up to $150,000 for a total APY of 4.05%<\/a>. That\u2019s more than 10 times the national deposit savings rate, according to the FDIC\u2019s February report (8).<\/p>\n With no minimum balances or account fees, as well as 24\/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured<\/a> by the FDIC through program banks \u2014 so your money remains \u201csafe\u201d while it works hard for you.<\/p>\n The average Social Security retirement benefit reached an all-time high of $2,071 in January, according to Social Security Administration data (9).<\/p>\n So it makes sense that boomers might rely on their Social Security benefit and\/or pension plan for a comfortable retirement.<\/p>\n For millennials, however, pensions are few and far between. Before they were born, the Revenue Act of 1978 introduced 401(k)s, which eventually started to replace pensions (10). Today, only about 31% of private employers offer a pension (11).<\/p>\n There\u2019s also uncertainty around the future of Social Security, with potential cuts to benefits if nothing changes by 2034 (12).<\/p>\n As such, millennials may be more likely to build a retirement plan based on a mix of retirement savings tools, including 401(k)s, Roth IRAs and brokerage accounts.<\/p>\n For both generations, diversifying some of their retirement savings into alternative assets like gold can help preserve wealth, especially as retirement inches closer. The appeal is simple: Unlike fiat currencies, the precious metal can\u2019t be printed at will by central banks.<\/p>\n One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals<\/a>.<\/p>\n Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, combining the tax advantages of an IRA with the protective benefits of gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.<\/p>\n To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals<\/a> on qualifying purchases.<\/p>\n Older generations may view job-hopping by younger generations as a lack of commitment. In their time, loyalty to one company often meant job security and career advancement \u2014 and perhaps an early retirement with a decent pension.<\/p>\n But for younger generations, the job market is being continually disrupted \u2014 particularly by technology. Millennials are the generation most likely to switch jobs, according to a Gallup report, and six in 10 are open to new job opportunities (13).<\/p>\n And this strategy is paying off for millennials. Data from ADP found that Americans who switch jobs see consistently higher pay gains than those who don\u2019t (14).<\/p>\n Americans spend about $121 on cable and internet every month (15).<\/p>\n Boomers are more likely to spend money on cable TV, even if they don\u2019t watch all of the channels they pay for. That\u2019s not to say they aren\u2019t embracing digital media (they are) \u2014 but they haven\u2019t cut the cord on cable, either.<\/p>\n Millennials are the cord-cutting generation. Not only can they watch what they want, when they want \u2014 without ads \u2014 but streaming services are much cheaper than cable packages. However, with a plethora of streaming services available, millennials may end up paying just as much as they would for a typical cable package.<\/p>\n While the average American has 4.5 streaming subscriptions, millennials are the \u201csubscription champs,\u201d according to Bango data. Millennials typically have between six and 11 subscriptions, and they\u2019re the most likely to spend more than $100 per month on those subscriptions (16).<\/p>\n With all those services to keep track of, it\u2019s easy for the recurring charges to slip the mind. That\u2019s where a personal finance app can come in handy.<\/p>\n A quick daily check-in of your accounts can show you exactly where your money is going.<\/p>\n An app like Rocket Money<\/a> can easily flag recurring subscriptions, upcoming bills and unusual charges by pulling in transactions from all your linked accounts.<\/p>\n This can help you cut unnecessary costs, and then you can manually redirect savings straight into your retirement fund. No spreadsheets, no guesswork, no stress. Small habits like this can make a big difference over time.<\/p>\n Rocket Money\u2019s intuitive app<\/a> offers a variety of free and premium tools. Free features include subscription tracking, bill reminders and budgeting basics, while premium features \u2014 like automated savings, net worth tracking, customizable dashboards and more \u2014 make it easier to stay on top of your retirement contributions and overall financial goals.<\/p>\n Financial topics were once considered taboo \u2014 you just didn\u2019t talk about money at the dinner table (or any other time). Indeed, more than half (56%) of Americans say their parents never discussed money with them, according to a Fidelity survey (17).<\/p>\n But that\u2019s changing. Younger generations are more open to discussing everything from how much money they\u2019re making to their investment strategies.<\/p>\n Thanks to social media and TikTok money talks, financial discussions are less taboo \u2014 even if millennials may still struggle to talk about money with their parents.<\/p>\n Boomers are more likely to seek professional advice on financial matters, with 39% of boomers saying they would turn to a professional first if they had questions about their finances, according to the 2024 Policygenius Financial Planning Survey (18).<\/p>\n Younger generations often turn to other sources for financial advice, from online resources and robo-advisors to social media influencers. But this is one area where millennials may be starting to follow in their parents\u2019 footsteps.<\/p>\n As they get older, some millennials are now turning to traditional advisors for more complex financial decisions, such as investments and retirement planning.<\/p>\n About a quarter (26%) of millennials surveyed said they received advice from a financial advisor for the first time within the last year, according to findings from Northwestern Mutual\u2019s 2025 Planning & Progress Study (19).<\/p>\n While boomers and millennials may not agree on everything \u2014 especially when it comes to money matters \u2014 it seems they do agree on having a plan for financial well-being.<\/p>\n And this makes sense, as research from Vanguard shows that working with a financial advisor can add about 3% to net returns over time (20). That difference can become substantial.<\/p>\n For example, if you started with a $50,000 portfolio, professional guidance could mean more than $1.3 million in additional growth over 30 years, depending on market conditions and your investment strategy.<\/p>\n But finding an advisor you can trust can feel like a tedious process, which could lead to waiting until it\u2019s too late.<\/p>\n Advisor.com<\/a> can help simplify the process. The platform quickly connects you with licensed financial professionals in your area who can provide personalized guidance tailored to your specific needs.<\/p>\n A professional advisor<\/a> can help you determine how many years you have left to invest before retirement and assess your comfort level with market fluctuations \u2014 two key factors in building the right asset mix for your portfolio.<\/p>\n Through Advisor.com, you can schedule a free, no-obligation consultation today<\/a> to discuss your retirement goals and long-term financial plan \u2014 a wise move for any generation.<\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Board of Governors of the Federal Reserve System (1<\/a>); Allianz (2<\/a>); Clever Real Estate (3<\/a>); Federal Reserve Bank of St. Louis (4<\/a>), (5<\/a>); Realtor.com (6<\/a>); OECD (7<\/a>); FDIC (8<\/a>); Social Security Administration (9<\/a>), (12<\/a>); EBSCO (10<\/a>); U.S. Bureau of Labor Statistics (11<\/a>); Gallup (13<\/a>); ADP (14<\/a>); Doxo (15<\/a>); InternetRetailing (16<\/a>); Fidelity (17<\/a>); Policygenius (18<\/a>); Northwestern Mutual (19<\/a>); Vanguard (20<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Boomers have…\n","protected":false},"author":2,"featured_media":553729,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,176,186,12351,184,185,2310,2306],"class_list":["post-553728","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-au","tag-australia","tag-business","tag-federal-reserve","tag-finance","tag-millennials","tag-personal-finance","tag-personalfinance","tag-social-security","tag-social-security-administration"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/553728","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=553728"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/553728\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/553729"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=553728"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=553728"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=553728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}