Millennials have abandoned these 7 boomer habits that made them the richest generation yet — plus what they do instead
About 73% of wealth in the U.S. is owned by Americans over 55 (including boomers and the Silent Generation), according to Federal Reserve data.
So why doesn't their financial advice make sense to millennials?
For boomers (those born between 1946 and 1964), 'a unique historical situation — strong economic growth, affordable housing markets and booming equity markets — allowed them to build up a handsome fortune,' according to an Allianz report.
But millennials have had a 'rougher ride,' says the report, since 'they were hit by one crisis after another.'
So what worked for boomers may simply not apply in today's world — and that could be why there are some money habits that millennials just don't get. Here are seven of them.
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1. Buying instead of renting
Why rent when you can buy? For many boomers, 'adulting' meant buying a house. Renting was seen as throwing money away.
According to a survey by Clever Real Estate, 'more than three-quarters of boomer homeowners (76%) [are] primarily credit owning their homes for their financial security, while 86% say owning leads to a more stable home life.'
But when boomers began adulting, homeownership was well within reach. The average millennial entering their 30s faces a 53% higher home-price-to-income ratio than the average boomer did at that age, according to Home Bay.
'In 1988, when the average boomer turned 33, the median home sale price was $110,000. The median household income was $27,230 without adjusting for inflation,' Home Bay reported.
Millennials, on the other hand, are faced with high home prices and mortgage rates (relative to income), which in many cases is pricing them out of the market — especially during a time of job instability and economic uncertainty.
For millennials, renting may be their only option at the moment — but some may also choose to rent.
For example, instead of putting money aside for a down payment, they may want to invest that money in index funds rather than home equity. Or they may prefer the simplicity and flexibility of renting.
2. Keeping money in 'safe' accounts
Many boomers keep a portion of their retirement savings in 'safe,' but low-yield, accounts, such as certificates of deposit (CDs).
Some may even leave their money in a traditional savings or checking account (or even cash), since they don't want to gamble with their money.
Perhaps it's because, about four decades ago, CDs had an average percentage yield (APY) of more than 11% for a one-year term. That's pretty much impossible these days. Instead, returns on that 'safe' account may not outpace inflation, meaning the money loses its purchasing power over time.
Millennials came of age as the internet did, so it makes sense that they may be more comfortable with online and mobile tools to manage their money, including looking for the best savings rates and investment opportunities.
3. Relying on Social Security and pensions for retirement
The average Social Security retirement benefit reached an all-time high of $2,002.39 in May 2025, according to Social Security Administration (SSA) data.
So it makes sense that many boomers would rely on their Social Security benefit and/or pension plan for a comfortable retirement.
For millennials, however, pensions are few and far between. Back in 1978, the Revenue Act of 1978 introduced 401(k)s, which eventually started to replace pensions. Today, only about 15% of private employers offer a pension. There's also uncertainty around the future of Social Security, with potential cuts to benefits if nothing changes by 2034.
Millennials may be more likely to build a retirement plan based on a mix of retirement savings tools, including 401(k)s, Roth IRAs and brokerage accounts.
With uncertainty around Medicare and Medicaid, they may also want to consider health savings accounts and long-term care insurance.
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4. Staying at the same job until you retire
Older generations may view job-hopping by younger generations as a lack of commitment. In their time, loyalty to one company often meant job security and career advancement — and perhaps an early retirement with a decent pension.
But for younger generations, the job market is being continually disrupted — particularly by technology. Millennials are the generation most likely to switch jobs, according to a Gallup report, and six in 10 are open to new job opportunities.
And this strategy is paying off for millennials. Data from ADP found that Americans who switch jobs see pay gains nearly double of those who don't.
5. Spending hundreds annually on cable
Americans spend a monthly average of $122 on cable and internet.
Boomers are more likely to spend money on cable TV, even if they don't watch all of the channels they pay for. That's not to say they aren't embracing digital media (they are) — but they haven't cut the cord on cable, either.
Millennials are the cord-cutting generation. Not only can they watch what they want, when they want — without ads — streaming services are much cheaper than cable packages. However, with a plethora of streaming services available, some may end up paying as much as a typical cable package.
While the average American has 4.5 subscriptions to streaming services, millennials are the 'subscription champs,' according to a Bango report. Millennials typically have between six to 11 subscriptions and they're the most likely to spend more than $100 per month on those subscriptions.
6. Refusing to discuss finances
Financial topics were once considered taboo — you just didn't talk about money at the dinner table (or any other time). Indeed, more than half (56%) of Americans say their parents never discussed money with them, according to a Fidelity survey.
But that's changing. Younger generations are more open to discussing everything from how much money they're making to their investment strategies.
Thanks to social media and TikTok money talks, financial discussions are less taboo — even if millennials may still struggle to talk about money with their parents.
7. Seeking advice from professionals
Boomers are more likely to seek professional advice on financial matters, with 39% of boomers saying they would turn to a professional first if they had questions about their finances, according to the 2024 Policygenius Financial Planning Survey.
Younger generations often turn to other sources for financial advice, from online resources and robo-advisors to social media influencers. But this is one area where millennials may be starting to follow in their parents' footsteps.
Some millennials are now turning to traditional advisors for more complex financial decisions, such as investments and retirement planning.
About a quarter (26%) of millennials say they've received advice from a financial advisor for the first time within the last year, according to findings from Northwestern Mutual's 2025 Planning & Progress Study.
While boomers and millennials may not agree on everything — especially when it comes to money matters — it seems they do agree on having a plan for financial wellbeing.
What to read next
Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it
Here are 5 simple ways to grow rich with real estate if you don't want to play landlord. And you can even start with as little as $10
Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead
Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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