What Each Generation Gets Right About Money And What You Should Copy

When I look at the way different generations handle money, one thing becomes obvious: each group has at least one financial habit worth copying. And if you’re serious about building wealth, you want to steal the best lessons from all of them. Let me walk you through what Boomers, Gen X, Millennials, and Gen Z are getting right and how you can use their strengths to build a stronger and more resilient financial life.

I always start with the Baby Boomers because their greatest financial strength is something too many people overlook: consistency. Boomers save an average of 17% of their income, and it’s not because they’re getting lucky or timing the market. They automate savings, ignore the noise, and keep investing even when things feel uncertain. That’s why they’re the wealthiest generation in the country today.

They also follow the golden rule of long-term investing: don’t panic sell. Staying invested through recessions, inflation cycles, wars, and political chaos is one of the biggest reasons their portfolios continued to grow. Add in broad index funds, low fees, and smart tax strategies like Roth diversification and qualified charitable distributions, and you can see why compounding has worked so well for them.

Then you have Generation X the “squeeze generation.” They’re juggling aging parents, raising kids, mortgages, careers, and retirement all at once. But despite the financial pressure, Gen X still saves around 15% of their income, including employer matches. Their best strategy is simple but powerful: set a savings floor. They don’t let their savings rate drop below 10–12%, no matter what life throws at them.

And here’s something Gen X does that I wish everyone adopted: an annual resilience audit. They review insurance coverage, update estate documents, check emergency funds, and make sure their financial foundation is solid. When life is complicated, stability matters. And they embrace tax diversification too, relying on Roth accounts and tax flexibility the same way Millennials do.

Speaking of Millennials this generation has completely changed how we think about saving for the future. Their biggest advantage is tax flexibility. Millennials love Roth accounts, and for good reason: they trade a tax deduction today for tax-free income later. That’s going to matter when tax rates rise in the future.

They also automate everything savings, investments, retirement contributions so they don’t rely on willpower. That one habit alone helps overcome the biggest challenge in personal finance: inconsistency. Millennials also lean into Health Savings Accounts (HSAs), one of the most tax-efficient tools in the entire IRS code. Triple tax advantage today, tax-free use later if handled correctly.

Add that to what they’ve learned from Boomers (stay invested long-term) and Gen X (keep saving even during chaotic life stages), and you can see why Millennials are becoming one of the strongest financial generations.

And now, Generation Z the newest group in the workforce is already changing the game. Their greatest advantage is time. Starting early even with a modest savings rate has an enormous long-term payoff. Saving 11% in your 20s can outperform saving 20% in your 40s. The math is just on their side.

Gen Z also embraces something I wish every generation did: splitting raises. Allocating 50% of every raise toward investments helps avoid lifestyle creep and keeps wealth growing without sacrificing enjoyment.

And because they know income is the engine of wealth, Gen Z focuses heavily on skill-building, networking, and learning how to increase their earning power. Career changes, negotiations, certifications, new skills these are all levers Gen Z is already pulling.

When you step back, the real point is simple: financial success isn’t about comparing yourself to others. It’s about comparing yourself to who you were last year. Are you saving more? Earning more? Growing your net worth? Building your emergency fund? If the answer is yes even by a small amount, you’re moving in the right direction.

The best way to grow is to take one habit from another generation and make it your own. Maybe you adopt the Boomer habit of staying invested no matter what. Or the Gen X habit of shoring up your financial foundation. Or the Millennial habit of automating everything. Or the Gen Z habit of investing in skills to increase your income.

Every generation got something right. Your job is to put those strengths together and build a financial life that works for you.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.