a stylish boomer couple raising their arms and smiling in a luxury car <\/p>\n
Boomers have amassed a lot of wealth over the years \u2014 indeed, about half of total household wealth in Canada is held by boomers, with an average net worth of almost $1.2 million, according to Statistics Canada<\/a>.<\/p>\n So why doesn\u2019t their financial advice make sense to millennials?<\/p>\n Boomers (those born between 1946 and 1964) are often considered the wealthiest generation. \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<\/a>.<\/p>\n But millennials 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, \u2018adulting\u2019 meant buying a house. Renting was seen as throwing money away.<\/p>\n Seventy-eight per cent of Canadian boomers believe home ownership is a good investment, according to a Royal LePage survey<\/a>.<\/p>\n \u201cThe boomer generation strongly values home ownership, for good reason. Real estate has been very, very good to them,\u201d said Phil Soper, president and CEO of Royal LePage, in an article about the survey \u201cMost are still working and their home equity has become the bedrock of retirement security.\u201d<\/p>\n Millennials, on the other hand, are faced with much higher home prices (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.<\/p>\n For millennials, renting may be their only option at the moment \u2014 but some may also choose to rent. For example, instead of putting money aside for a down payment, they may want to invest that money in index funds rather than home equity. Or they may prefer the simplicity of renting.<\/p>\n Many boomers keep a portion of their retirement savings in \u2018safe,\u2019 but low-yield, accounts, such as guaranteed investment certificates<\/a> (GICs). Some may even leave their money in a traditional savings or checking account (or even cash), since they don\u2019t want to gamble with their money.<\/p>\n But returns on those \u2018safe\u2019 accounts may not outpace inflation, meaning their money loses its purchasing power over time.<\/p>\n Millennials came of age as the Internet did, so it makes sense that they may be more comfortable with online and mobile tools to manage their money, including looking for the best savings rates<\/a> and investment opportunities.<\/p>\n Boomers know that free is fantastic, unless paying a fee gets you access to bigger, better and more rewarding opportunities. For Boomers, retirement is about freedom \u2014 and they start with financial tools that give them more of it, such as a premium credit card.<\/p>\n For example, Westjet RBC Mastercard cardholders pay just $119 for a companion ticket, while RBC British Airways Visa Infinite gives you a free companion flight or 50% off a single ticket each year. Plus, almost all premium cards also offer robust travel insurance coverage, as well as airline perks such as lounge access or first-bag checked for free.<\/p>\n To make your dollars work harder \u2014 upgrade your credit card today. The RBC\u00ae British Airways Visa Infinite<\/a> offres a first-year value of $1,176! Find out by comparing more than 140 cards in just 5 seconds<\/a> \u2014 your future self will thank you!<\/p>\n Read more: \u2018You\u2019re going to live on beans and rice\u2019: This senior told Dave Ramsey she has debt and zero savings \u2014 here’s his response plus 3 retirement saving tips to get you back on track<\/a><\/p>\n When it comes to retirement, 72% of Canadian boomers expect to rely on their pension plan to fund their golden years, according to a 2024 Manulife financial resilience and longevity report<\/a>.<\/p>\n The defined benefit (DB) pension was \u201cthe gold standard when boomers dominated the workforce\u201d in Canada, according to BNN Bloomberg<\/a>.<\/p>\n For millennials, however, a pension isn\u2019t a given.<\/p>\n As of 2021, 22.9% of private-sector workers in Canada were covered by a registered pension plan, compared to 86.6% of public-sector workers, according to data compiled by Fraser Research<\/a>.<\/p>\n Millennials may be more likely to build a retirement plan based on a mix of retirement savings tools, including RRSPs, TFSAs<\/a> and brokerage accounts.<\/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. And to get ahead, job hopping may be necessary.<\/p>\n The average Canadian worker between ages 18 to 65 holds 10 different jobs throughout their career, according to data from Randstad<\/a>. Younger generations are \u201cmore prone to restlessness,\u201d with 66% of millennials contemplating a career change in the following 12 months.<\/p>\n But this strategy could be paying off for millennials. Data from Hays<\/a> indicates that job seekers who changed jobs saw a salary bump of 10% to 20%.<\/p>\n Cable is the \u201cpreferred type of TV service\u201d for boomers, according to a Media Technology Monitor (MTM) report<\/a>. 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 About 80% of younger boomers and 70% of older boomers have at least one subscription service, such as Netflix, Amazon Prime, Crave or Disney+, according to the MTM report, more than three in five subscribe to both subscription and cable TV.<\/p>\n Millennials are the cord-cutting generation. Not only can they watch what they want, when they want \u2014 without ads \u2014 streaming services are much cheaper than cable packages. However, with a plethora of streaming services available, some may end up paying as much for multiple services as a typical cable package.<\/p>\n Eight in 10 (82%) millennials, the \u201cfirst to recognize the value of subscription streaming services\u201d, subscribe to at least one streaming service, according to Abacus Data<\/a>.<\/p>\n Financial topics were once considered taboo \u2014 you just didn\u2019t talk about money at the dinner table (or any other time). But that\u2019s changing.<\/p>\n Younger generations are more open to discussing everything from how much money they\u2019re making to their investment strategies. Thanks to social media and TikTok, 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 than younger generations. A survey from Edward Jones and Cerulli Associates<\/a> found that boomers trust advisors, but millennials trust themselves.<\/p>\n Younger generations often turn elsewhere 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 Some millennials are now turning to traditional advisors for more complex financial decisions, such as investments and retirement planning.<\/p>\n Younger millennials (46%) and older millennials (50%) are \u201cinterested in receiving personal finance information regarding investment strategies,\u201d according to the BMO Real Financial Progress Index<\/a>. They\u2019re also interested in advice about alternative revenue streams.<\/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 wellbeing.<\/p>\n 1. Statistics Canada: <\/a>Distributions of household economic accounts for income, consumption, saving and wealth of Canadian households, 2019 (Jun 26, 2020)<\/p>\n 2. Allianz: <\/a>Financial assets: Surprising relief<\/p>\n 3. Royal LePage: <\/a>Survey says 3.2 million boomers in Canada considering buying a home within the next five years<\/p>\n 4. Manulife: <\/a>Baby boomer retirement planning\u2014how employers can help ease the transition (Apr 22, 2025)<\/p>\n 5. BNN Bloomberg: <\/a>Millennials in a pension pickle as they overtake boomers by Dale Jackson (Feb 23, 2024)<\/p>\n 6. Fraser Research Bulletin: <\/a>Comparing Government and Private Sector Compensation in Canada, 2023 Edition by Milagros Palacios, Nathaniel Li and Ben Eisen (2023)<\/p>\n 7. Randstad: <\/a>Is staying in a job too long hazardous to your career? (Dec 11, 2023)<\/p>\n 8. Hays: <\/a>Hays reveals job seekers who switch jobs can see a significant salary increase despite economic uncertainty (Feb 7, 2023)<\/p>\n 9. Media in Canada: <\/a>The latest findings on Baby Boomers and tech by Patti Summerfield (Feb 26, 2024)<\/p>\n 10. Abacus Data: <\/a>Consumer Spotlight: Streaming Services in Canada by Megan Ross (Nov 28, 2019)<\/p>\n