Key Findings
- Just 35.8% of millennials feel financially secure, despite higher ownership rates of 401(k) plans, high-yield savings accounts and Roth IRAs than any other generation.
- The idea that finances are an impolite conversation is dying: 86.5% of Americans say they talk about their finances with their friends.
- Gen Z is more likely to ask their family for money than use a credit card when facing unexpected bills.
- More than one-third of both millennials (35.7%) and Gen Z (35.2%) trust financial advice they find on social media, while baby boomers are least likely to trust social media for financial advice (9.1%).
- Nearly half of baby boomers seek financial advice from financial advisors, compared to just 22.2% of Generation X.
The Disconnect Between Financial Security and Financial Responsibility
Across generations, the majority of Americans consider themselves financially responsible, but there is a disconnect between making financially responsible decisions and feeling financially secure. Americans in every generation feel financially insecure even though they believe themselves financially responsible.
Baby boomers feel the most financially responsible of the generations, with 86.3% claiming financial responsibility. The numbers were lower for Generation X (74.3%), millennials (73.0%) and Generation Z (71.8%).
More than a third (37.5%) of baby boomers who feel financially responsible also feel financially insecure, however. Gen X Americans had an even greater disconnect, with only 42.9% of those who feel financially responsible reporting feeling financially insecure as well.
Gen Z and millennials held a similar sentiment, with 38.8% of financially responsible Gen Zers feeling financially insecure and 34.5% of millennials.
Generation X Feels The Most Financially Insecure
Generation X is the most financially insecure overall, with just over half (50.2%) feeling financially insecure.
Millennials are next, with 42.9% feeling financially insecure, followed by 42.6% of baby boomers and 40.3% of Gen Z.
Millennials Are Obsessively Checking Account Balances
Perhaps as a product of being raised in the digital age, it seems younger generations are more plugged into their financial status. Even though baby boomers feel the most financially responsible, they check their account balances less frequently than other generations. Only 39.3% of baby boomers check their bank account once a day or more.
In contrast, 58.2% of millennials check their accounts at least once per day. About half of Gen Z (52.5%) and Gen X (49.9%) do the same.
Banking Practices By Generation
In addition to having differing levels of financial insecurity and attitudes about money, the generations have different practices with how they bank, the types of accounts they use and how they manage unexpected expenses.
For instance, baby boomers are generally more familiar with accounts like a Roth IRA or money market account than Gen Z. Gen Z and Gen X are the most comfortable asking friends or family for money, while millennials prefer using savings or a credit card to cover unexpected expenses.
Despite Understanding What’s Available, Few Are Actually Utilizing Accounts Like a 401(k)
It seems that the majority of Americans are familiar with at least the basics of retirement plans — though it doesn’t mean they are taking advantage of them.
Eighty-eight percent of Americans are familiar with a 401(k), but just 26.7% of those who are familiar with the concept actually have one. Overall, only 18.5% of Americans have a 401(k), a fact that might contribute to pervasive financial insecurity across generations.
Other retirement accounts seem to be less well understood. Only 41.9% of Gen Z and 53.5% of Gen X are familiar with a Roth IRA compared to 70.4% of baby boomers.
Similarly, other types of accounts — like high yield savings accounts, money market accounts and certificates of deposit (CDs) — are not being utilized in proportion to knowledge of them. More than 40% of every generation was familiar with each of these types of accounts. Still, few actually use these account types, indicating that many are not maximizing the resources available to manage their finances.
Millennials Save More than Any Other Generation
Saving money is a crucial practice for any financially independent adult, no matter their generation, though how much money each saves differs.
Don’t let the headlines about avocado toast fool you — millennials are actually saving the most on average each month of any generation. In fact, they are saving around one-third more than Gen X every month.
The average savings per month by generation are as follows:
- Millennials save the most on average every month at $535.50.
- Gen Z saves the second-most every month with an average of $489.20.
- Baby boomers save the third-most every month at $406.00 on average.
- Gen X saves the least across generations, though at a similar rate to baby boomers, with an average of $400.60 every month.
In Response to Unexpected Expenses, Gen Z is Most Likely To Turn to Family
Dealing with unexpected expenses happens to every generation, but the tools used to approach this challenge vary.
Emergency savings are the number one resource for all generations when unexpected bills or expenses come up. Credit cards, loans from family or friends and seeking additional income streams are all also utilized in tough situations, though the generations vary on their propensity for each option.
For instance, Gen Z is more likely to ask a family member for money than to use a credit card to pay an unexpected bill or expense. Millennials are the opposite, being more likely to use a credit card than borrow from family.
In-Person Banking Might Soon Be A Relic
One other banking practice with generational differences is in-person banking.
Regardless of generation, nearly half of Americans (46.3%) visit their bank a few times a year or less. Similarly, about half (47.4%) primarily access their finances through mobile or online banking, with 42.1% using a combination of in-person and digital tools and only 10.5% preferring to physically visit their bank.
On average, millennials visit their banks more often than baby boomers and Gen X. Gen Z was most likely to report having never visited a physical bank, with 7.2% of Gen Z agreeing.
Money Talk Becoming Less Taboo
The idea that talking about money is impolite could be fading into the past, as well. Most Americans (86.5%) agreed they are comfortable talking to their friends about finances at least sometimes. In fact, 68.5% of Americans trust their family and friends to give financial advice.
Younger generations are still the most comfortable having these conversations. Among Gen Z, 93.3% are willing to talk to their friends about finances, with a third (33.3%) claiming they do so all the time or frequently. Around ninety-one percent (91.4%) of millennials and 85.8% of Gen X agree they talk to their friends about finances, albeit less frequently.
Baby boomers, on the other hand, seem less eager to share their money stories. Only 76.3% of baby boomers are willing to talk to friends about finances, with most (41.5%) saying they do so rarely.
While Social Media is Generally Considered Less Trustworthy, Many Still Seek Out Online Financial Education
There are many places where Americans get their financial advice: social media, banking institutions, online resources and others.
Nearly half (48.9%) of Americans get financial advice from their family or friends while more than one-third (36.4%) say they get financial advice from banking institutions. About 32.1% say they look to online resources for financial advice.
Generally, social media is considered a less-trustworthy source, but the same can’t be said for all online advice. About 46.9% of Americans believe online resources like blogs and financial publications are trustworthy.
Across generations, friends and family were the most common source of financial advice. Baby boomers were more likely than other generations to solicit advice from a financial advisor, while 43.5% of Gen Z get financial advice from social media platforms like TikTok and Instagram.
As far as authority, most Americans agreed that financial advisors are a good source of financial advice while social media is not a trustworthy source. That said, 24.4% of Americans believe they get trustworthy financial advice from social media (including TikTok and Instagram).
Younger generations seem to be more trusting of social media advice, with more than a third of Gen Z (35.2%) and millennials (35.7%) trusting financial advice from social platforms. Only 19.1% of Gen X and 9.1% of baby boomers agreed.
Generational Banking Trends: What the Experts Say
Many factors might contribute to the differences in attitudes about financial topics among generations, including average income, financial goals (like a home purchase or retirement) and comfort with digital tools.
According to financial experts we spoke with, it makes sense that baby boomers would feel more financially secure at a later point in their financial journey or that the individual financial crises faced by millennials vs Gen Z would impact their priorities.
Generational Differences May Be In Part Due To Age Differences
Building wealth, expanding financial education and achieving financial goals take time, so it stands to reason that older Americans might have different experiences with money than younger generations.
According to Kristy L. Archuleta, Ph.D, a professor in financial planning at the University of Georgia, you’d expect that a baby boomer would be less stressed about money than a Gen Z American, on average.
“Baby boomers tend to report lower financial stress than younger generations; however, remember that they are later in life and tend to be in or facing retirement, so their financial situation looks quite different,” Archuleta said.
Jimmie Lenz, executive director of the FinTech Engineering Masters Program at Duke University, added that earnings, credit scores and acquired lifetime experiences all increase with age, all of which are instrumental in different generational attitudes.
Technology Plays a Big Role in Shaping Financial Attitudes
Financial services are increasingly digital, and as mobile banking, online financial education and other internet-focused money management become the norm, financial attitudes will change alongside the industry.
In many cases, technological advances can make financial information more accessible and put different money tools in more people’s hands. In others, it can add stress.
“While technology (e.g. social media) can get a bad rap when it comes to negative effects on mental health, technology has also allowed for efficiencies in processing all types of information, including financial information, created security measures to protect money and even increased accessibility,” Archuleta said.
She added that opening a bank account can be done completely from a cell phone, making it easier for younger generations to access accounts they may not have considered before.
At the same time, social media lends itself to comparison to others. Pitting your own financial situation against others online can make you feel behind or less financially secure. And in many cases, this perspective of others’ lives is misguided, she says.
Additionally, different generations have different comfort levels with technology and preferences for the tools they use to manage their finances.
“Every generation has had its form of technology, but it has advanced,” Archuleta said.
The Factors That Shape Financial Attitudes are Complex
While we can associate some of the differences in financial attitudes across generations to age alone, there are many other complicated factors that go into the variation. That can include race, socioeconomic status and cultural norms, Archuleta said.
Major economic occurrences in the last several decades will also impact each generation differently.
“While I normally eschew sweeping characterizations, there certainly are some events that have shaped generations that experienced them in crucial times in their lives,” Lenz said.
For instance, many millennials began their careers and financially independent lives amid the Great Recession between 2008 and 2009. Plus, the wide range of ages in generations mean there are often discrepancies even within these groups.
“Consider the difference between a child whose father fought [in] World War II versus a grandfather – quite different experiences,” Lenz said.
We May Be More Similar Than We Are Different
Experts we spoke to agreed that even though generations face different challenges and have varied attitudes towards money, Americans as a whole have many similar experiences and lessons that can be learned together.
“The different generations have some major similarities,” Archuleta said. “For example, financial knowledge tends to be low among everyone across all generations and financial stress is high among all generations.”
Lenz added that savings rates across all generations are low while use of credit is high.
These facts speak to a need for widespread financial education in our country, with a greater emphasis on its importance no matter your age or life stage. And with different generations having different financial strengths, perhaps there are some things they can learn from each other.
Final Thoughts
The generations differ in things such as their preferred source of financial information and who they talk about money with, but there are some unifying trends across age ranges as well. Notably, even Americans who feel financially responsible don’t necessarily feel financially secure, and while many are aware of the bank account types available to them, they don’t always take advantage of them.
Methodology
The MarketWatch Guides Team surveyed 2,000 Americans using Pollfish, a third-party market research and survey platform, to better understand banking trends and habits across generations. We collected survey data for this report from February 13, 2024 through February 15, 2024.
The breakdown of survey respondents by generation is below:
Generation Z: 16% of respondents
Millennials: 40% of respondents
Generation X: 27% of respondents
Baby boomers: 16% of respondents
We weighted responses to align with population demographics across age, gender, and income status to be representative of all U.S. adults (aged 18+). The margin of error is +/- 3% with 95% confidence. Silent generation respondents were excluded due to sample size.
Our Experts
Jimmie Lenz, executive director of the FinTech Engineering Masters Program at Duke University
Dr. Jimmie Lenz, a seasoned executive and educator, excels in banking, capital markets, and fintech. With over 25 years of experience, he has held senior roles in trading, risk management, and analytics. Dr. Lenz is a sought-after advisor and co-host of the “Coffee and Crypto” podcast. He holds degrees from the University of South Carolina and Washington University and actively advises and partners within the industry.
Kristy L. Archuleta, Ph.D., professor in Financial Planning at the University of Georgia
Dr. Kristy Archuleta is a professor in the financial planning program at the University of Georgia, a licensed marriage and family therapist, and a Certified Financial Therapist-I™. Before joining the UGA faculty in 2018, she was an associate professor and program director of the personal financial planning program at Kansas State University. Her research and teaching interests relate to financial therapy, couples and money, and effective mechanisms to improve financial and overall well-being.
