Gen Z, Millennials, Gen X & Boomers Have Completely Different Ideas Of What Living Within Your Means Looks Like
RDNE Stock project | Pexels Many older generations are innately more financially stable than young people. But financial well-being also looks wildly different between Gen Zers, millennials, Gen Xers, and baby boomers.
Everyone has completely different ideas about what actually living within your means or having enough money to feel comfortable looks like.
What living within your means looks like, according to different generations
Boomers value work ethic and avoiding any kind of debt
To baby boomers, who seriously value their sacrifice and the money they earn from working hard, they're intent on saving it. They also grew up in a time when their families literally couldn't afford to waste money on unnecessary things, and pinching pennies was normal.
Compared to younger generations, they tend to steer clear of any debt, whether that's big loans or credit card balances. They make it a point to pay off what they owe, and don't spend money buying what they don't need.
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They also believe that in order to live within your means and save for the future, you have to make sacrifices. There's something honorable about cutting back on things you enjoy and having a lifestyle built by sacrifice for financial well-being, even if it's miserable.
For boomers, living within your means often comes at this expense, because they're more focused on frugality and saving, and preparing for the future.
Gen Xers are less driven by affordability, and more interested in value
Gen Xers, who are making consistently more than their younger counterparts, are most interested in spending on value. They're willing to make investments in quality products and premium services, while still considering themselves as living within their means.
Compared to boomers, they're less driven by a need to sacrifice, and are more likely to cut back on purchases that don't directly affect their daily lifestyle.
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To them, living within their means isn't about making their daily life miserable and wearing that hardship as a badge of honor.
Instead, it's about saving consistently and being intentional about their financial choices. They also only invest in services and products that make life better.
Millennials focus most on tracking their spending and pooling resources
So many people feel stuck in survival mode today, without being able to save money for anything. For millennials, they're facing high housing costs and rising prices.
They have less money to spend on themselves, so most or all of their income goes to big things like student loans and rent. Essentially, they're unable to afford basic necessities.
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But in order to live within their means, they take steps to combat this. Millennials focus on tracking how much they spend and using the resources available to them. That may mean relying on their parents for childcare or even co-living with friends or family.
Gen Z makes space for affordable joys and soft saving
While Gen Zers are "soft savers," putting away inconsistent amounts casually, they do still believe that living within your means includes little treats and affordable micro-experiences.
They're not willing to punish themselves by taking away these parts of daily life, especially when they're not saving for any big investments like a home in the near future.
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They're not in the business of suffering for a later date, which is also why they tend to carry more debt over longer periods of time than their older counterparts.
Zayda Slabbekoorn is a senior editorial strategist with a bachelor's degree in social relations & policy and gender studies who focuses on psychology, relationships, self-help, and human interest stories.
