How Boomers Shaped Millennial and Gen Z Money Problems and What We Can Learn From It
It’s no secret that Millennials and Gen Z feel squeezed financially rising costs, stagnant wages, and a housing market that feels out of reach. Many point the finger at Baby Boomers, claiming they had it easier and left behind a system stacked against younger generations. But like most things in money and history, the truth is more complicated.
Boomers and Financial Struggles
Millennials and Gen Z aren’t wrong to feel frustrated. They’re facing record levels of debt, higher living costs, and fewer traditional paths to wealth. Meanwhile, many Boomers built their wealth during a time of affordable housing, expanding job opportunities, and cheaper education. The irony is that some of the very systems Boomers created like easy access to credit or the push for college degrees helped shape the challenges younger generations face today.
The College Degree Explosion
Boomers were the first generation to make higher education a cultural expectation. In the early 1960s, about 44% of high school graduates went to college. By the early 1980s, that number jumped to 73%. The problem? College tuition soared along the way. Millennials followed the same advice their parents gave “go to college, get a degree, and you’ll succeed” but ended up buried under student loans. What was once a ticket to stability has become a lifelong financial burden for many.
The Rise of Self-Care and Its Costs
Boomers often took pride in “toughing it out.” Self-care and mental health were rarely discussed. Millennials and Gen Z, in contrast, prioritize mental health, therapy, and work-life balance a positive shift, but one that also comes with its own financial challenges. Wellness products, therapy apps, and gym memberships can add up quickly. The key difference isn’t just priorities it’s how each generation values time, health, and emotional well-being.
The Normalization of Debt
One of the biggest legacies Boomers left behind is the normalization of debt. Before the mid-20th century, borrowing money for anything other than a house was seen as irresponsible. But Boomers came of age as credit cards, personal loans, and consumer financing became mainstream. Borrowing was no longer taboo — it was expected. This mindset trickled down to Millennials and Gen Z, who grew up in a culture where credit cards, student loans, and car payments felt like a normal part of life.
The Housing Market Divide
Perhaps the most visible financial divide between generations is homeownership. Boomers bought homes in the 1970s and 1980s for prices that would make today’s buyers cringe and often with single incomes. Today, Millennials and Gen Z face skyrocketing real estate prices, limited supply, and high mortgage rates. Many younger buyers want homes that match the lifestyle their parents achieved but face far steeper barriers to get there.
Different Expectations, Different Realities
Boomers tended to live within their means modest homes, family road trips, and fewer luxury purchases. Millennials and Gen Z, however, came of age in a world of social media and endless comparison. The constant exposure to luxury travel, designer goods, and influencer lifestyles can warp expectations. It’s not that younger generations are reckless it’s that the baseline for what’s “normal” has shifted dramatically.
What Millennials and Gen Z Can Learn From Boomers
While it’s easy to criticize, Boomers also got some things right. They valued saving, worked consistently, and lived simply. Younger generations can learn from that especially when it comes to building long-term wealth. The lesson isn’t to mimic the past, but to merge the best of both worlds: combine the discipline and patience of Boomers with the adaptability and tech-savvy of Millennials and Gen Z. Understanding the roots of today’s challenges can help the next generation build a better financial future one based on balance, not blame.
All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.
