Gen Z, Millennials, Gen X & Boomers Have Completely Different Ideas Of What Being Frugal Means
SeventyFour | Shutterstock Each generation thinks about saving money differently, and that has a lot to do with the economy they were raised in.
This includes how each generation defines concepts like budgeting and frugality. Clipping coupons, for example, makes sense to boomers but is completely foreign to Gen Z. That doesn’t mean anyone is right or wrong. Instead, they’re just basing their opinions on what they’ve been through.
The generations aren’t on the same page when it comes to being frugal because they didn’t grow up thinking about it the same way.
Everyone, regardless of what generation they’re from, could probably agree on a general definition of frugality. The discrepancy comes up in the way that they have all applied that definition to their lives. Since inflation and the value of money don’t stay the same, that basic idea of being frugal has meant different things through the years.
Boomers valued being frugal even though the economy didn’t really require it at the time.
It’s almost like the baby boomer generation was torn between two realities. Their parents lived through the Great Depression and the financial difficulties that came along with World War II, so they knew what it was like to struggle. They naturally wanted better for their kids, so they taught them to spend their money wisely.
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At the same time, the post-war economy was strong, and companies took advantage of that by marketing their products to adults and children alike. This gave boomers the chance to learn important lessons about money, but they didn’t have to put them to use very often. The economy was stable enough for them to buy the things they wanted while still saving money.
Boomers believed in saving money, but they did it because it seemed like the right thing to do, not because it was necessary. This gave them the impression that being frugal had more to do with spending responsibly than it did with penny-pinching. This approach worked well for them because they’re estimated to have a combined $93 trillion in assets now.
Gen X faced difficult financial conditions that forced them to count their pennies.
Unlike the relatively fortunate boomers, Gen X dealt with an economy that was far from perfect. They went through hard times when the economy dipped with the creation of the internet, and again years later when the housing market collapsed. Many of them are concerned about their ability to retire.
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The prices for things that were so affordable for boomers began to go up during Gen X’s prime. This has left them with more debt than any other generation. Now, many people from this age group play a role in caring for their elderly parents and their children, who are struggling in their own right. It’s interesting that boomers were so fortunate but are now sometimes a financial burden to their Gen X kids.
These factors gave Gen X a very different view of frugality. It wasn’t just being smart with money anymore. They had to find a way to pay for more expensive things with less wealth, so they did anything that would help, like clipping coupons and shopping around. They had to be serious about being frugal instead of acting like it was some fun trend to participate in.
Millennials must be frugal as adults but didn't grow up with that notion.
This generation grew up during a time that was almost idyllic. The economy was in a great place, and there really wasn’t much that they had to worry about. All of that changed when they got a bit older and witnessed unprecedented historical and political events that culminated in the Great Recession of 2008.
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The Great Recession happened right when a lot of millennials were preparing to join the workforce. Many of them faced unemployment, which forced them to put off other milestone events like homeownership. Just when they felt like they were starting to regain their footing, they faced another recession caused by the COVID pandemic.
The stability that millennials knew in their younger years has disappeared. It’s almost like they can’t catch a break, which has forced them to move into a kind of financial survival mode. Some struggled to pay their bills, forcing them to live frugally in a way previous generations didn’t. Things like making smart purchases and using coupons seemed quaint when they had to cling to being frugal like it was a life preserver.
Gen Z is serious about being frugal because they learned from their parents’ and older siblings’ experiences.
This youngest generation has mostly been raised by Gen Xers who instilled caution in them. Instead of living up to the stereotype of young people engaging in risky behavior, Gen Z prioritized their education and is serious about their career prospects.
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For some Gen Zers, the Great Recession probably formed their earliest memories. Many had to deal with their parents losing their jobs or their adult siblings and cousins being unable to find work. They wanted to overcome those difficulties, but the economy didn’t always cooperate.
Now that Gen Z is ready to enter the workforce themselves, they’re the ones facing unemployment in the middle of a cost of living crisis. Being frugal is kind of like their default way of life at this point. They don’t overspend, and they save what they have for what’s absolutely necessary. They don’t really get a choice in the matter as older generations did. It’s just their reality.
Mary-Faith Martinez is a writer with a bachelor’s degree in English and Journalism who covers news, psychology, lifestyle, and human interest topics.
