Gen Z, Millennials, Gen X & Boomers Usually Spend Their Money Completely Differently
Jose Calsina | Shutterstock Looking at the numbers helps explain why your parents, your kids, or even your friends may have very different financial priorities.
Whether you have a shopping addiction (like me) or won't spend a dime, statistics show that every generation spends its money a little differently from the others. These trends tend to reflect the economic conditions each generation grew up in, as well as broader social trends. If you find that your parents are spending more than you, there's probably a reason for it. Here is how every generation is spending their money.
Gen Z, Millennials, Gen X & Boomers usually spend their money completely differently:
Boomers usually spend more money online and on the things they enjoy
Boomers are among the wealthiest generations and have more spending power than younger generations. They have the highest income of any generation, and they are looking to spend it. Many Boomers are retired or nearing retirement. Because of that, many Boomers are spending more, and, according to Goodman Global, they are single-handedly driving growth in industries such as travel, luxury, and health and wellness.
Another surprising finding is that Boomers have embraced technology. In fact, since 2021, the number of boomers using TikTok has increased by 57%. They're also more likely to shop online than Gen Z. So, maybe think twice before you reply to someone with "Ok boomer" online.
Although boomers spend the most money online of any generation, they don't feel represented in the media. According to GWI, 90% have reported that they don't feel businesses are targeting them. Ouch.
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Gen X usually spends the most because they're supporting everyone else
While Gen X is sometimes called “the Forgotten Generation,” their spending habits are certainly not.
Gen X is actually spending the most money out of all the generations. According to the World Economic Forum, Gen X is at an age where they are supporting their families (both kids and parents), which means most of their expenses go toward this. In 2021, the average American spent $60,000, while Gen Xers spent $83,000.
Housing is the largest expense across all age groups, accounting for 30% of total annual spending for every generation. Gen X puts most of their money towards healthcare, child care, and elder care. This is part of why Gen X is behind on retirement savings and chooses to keep working.
On average, most Gen Xers have Gen Z kids, and almost half of Gen Z are living at home. This means their parents pay for most things (housing, entertainment, food) while Gen Z doesn't have to. While Boomers are more likely to spend on travel and luxury purchases, Gen X is spending more on raising kids, helping aging parents, and covering everyday family expenses.
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Millennials usually spend more on experiences than stuff
Millennials are more likely to spend money on experiences and education than on material things. In America, 48% of millennials have children under 2, and as they enter their new era as parents, they are being more careful with money. They are also moving into the suburbs and out of urban areas, which increases housing costs.
According to GWI, in 2026, millennials are spending more on travel and personal growth. Millennials also spend more on mental health services than older generations. Furthermore, there has been a shift in priorities. Millennials are focusing more on saving and taking care of their personal needs than societal issues. They're also more likely to invest in cryptocurrency and use payment plans for purchases. Needless to say, they're not in the same boat boomers are (yet).
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Gen Z usually spends less because money is tighter
Many of Gen Z's shopping habits are driven by their financial instability. Gen Z is graduating with student loans and few jobs available to pay them off. Therefore, they are holding off on making big life purchases. For example, only 6% of Gen Z are planning to buy a house in the next year. Those planning to get engaged are 25%, and those planning to get married are 16%. Many Gen Z adults have become careful with how they manage their money.
Additionally, Gen Z is spending less on healthcare and entertainment than older generations. A main reason for this is that Gen Z can still be on their parents' health insurance, and they are younger and, in general, have fewer health issues. They also look for ways to cut costs, including sharing streaming services with family members.
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Gen Z also cares a lot about making ethical purchases. Many Gen Z consumers believe companies should make sustainable products more affordable rather than placing the responsibility entirely on shoppers. Gen Z believes that ethical purchases shouldn't come with a price tag, and they are 8% more likely than other generations to buy secondhand.
Sophie Bagheri is a writer with a bachelor's degree in English and theatre who covers lifestyle topics.
