Stop Blaming Boomers: 13 Ways We Can We Bridge the Generational Wealth Divide Without Blaming Boomers
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Boomer resentment is like ingesting poison and hoping it hurts someone else. Resenting others for your own problems damages your well-being and negates ambition. However, if you’ve ever uttered or heard the phrase, “OK, Boomer,” then you’ve heard the sound of generational resentment. For years, Gen Xers, Millennials, and Gen Zers have used online forums to blame and express their resentment toward Baby Boomers, who they blame for the state of the world.
The younger generations have to contend with a generational wealth divide between themselves and Boomers, never mind the one percent. The younger generations are struggling with employment issues, inflation, and the surging cost of living standards in a digital world. They are experiencing problems that Boomers never had to contend with. Still, is it right to blame Boomers for the state of the current world?
Younger generations believe that Boomers were financially better off in their time and now the system is rigged against them. The Boomers made the best of their circumstances during their era. It’s time that succeeding generations make the best of their own eras. Here are 13 ways we can bridge the generational wealth divide without blaming Boomers.
1. Develop a Personal Finance Plan
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“OK, Boomer” is a generational insult towards Boomers that became trendy online in the late 2010s. The insult is predicated on the idea that Boomers hoarded too much wealth and political influence in their time. Billionaire Boomers Howard Marks criticized his generation in a November 2021 interview with Business Insider. Marks said that Boomers wrecked the economy at the “expense of future generations.”
Instead of blaming the previous generation, take a look at your financial life now. What do you want for yourself in the future? Make a household finance plan for the future. Make a list of things you want to accomplish, like getting out of debt, getting a better job and car, or starting a business. Make a list of realistic ways of accomplishing these things. Consult a financial advisor if possible.
2. Become Financially Literate (Like Boomers)
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In a March 2024 online forum, Millennials and Gen Xers complained that Baby Boomer parents and grandparents never prepared them for the harshness of life as an adult. Many complained that they were never advised to save money and never understood “interest” in finance. They said they were never taught the dangers of credit cards or to appreciate how fast time flies when making good and bad decisions.
Blaming Boomers doesn’t change the fact that only 57% of Americans are financially literate. You can’t make important financial decisions regarding bank accounts, saving, borrowing, or investing without financial literacy. There are many government and academic online guides for adults to learn financial literacy. There is no shame in being financially illiterate. The only shame is in not fixing the problem or blaming Boomers for it.
3. Get Part-Time Jobs and Start Side Hustles
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The younger generations complain Boomers had an easier time making money. The median household income in 1976, when most Boomers were in their late 20s or early 30s, was $15,000. When adjusting for inflation, that is $82,600 in today’s money. For added context, Boomers were workaholics, reinvested in their homes, saved every penny they had, worked the same type of job all of their lives, were expected to build nuclear families, and also grew up in times of economic uncertainty.
Even if you want to argue Boomers had a better time making money, which was not true for most, life only got better after they became elderly after a lifetime of saving. Younger generations have the internet, side hustles, global connectivity with others, and many advances in life that would have been akin to sci-fi for Boomers. Blaming previous generations won’t pay bills. Leverage your skills in the online gig economy. Start getting side hustles and part-time jobs to get more income.
4. Live Below Your Means (Like Boomers Did)
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Sometimes, younger generations blame older generations for their problems to distract them from the reality that they are causing them. As previously mentioned, many in the younger generations admit to being financially illiterate. Over 73% of Millennials live paycheck to paycheck. Meanwhile, 60% of Millennials are obsessed with projecting phony rich personas online to the detriment of ignoring their real finances.
$20 avocado toast became the stereotype symbol of Millennials in the 2010s; a 2018 study found that Millennials alone spent $453 million on avocados that year. Start living below your means. Cut all unnecessary expenses. Prioritize need over want in your budgets. Buy generic instead of brand-name products. You can’t blame Boomers for living above your own financial means.
5. Reduce Your Debt
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The typical Gen Zer owes $11,000 in non-mortgage debt. Millennials are burdened with $27,000 in household debt. Boomers owe about $26,000 in debts. Gen Xers owe about $33,000. While it’s easy to play a generational blame game, each generation has to make the most of the situation they find themselves in.
It could take seven years to a decade for bankruptcy or debt collections to be wiped from your credit history. Get a secured credit card and incrementally make small purchases to pay back over time to repair your credit. Consult with a financial advisor to find a debt reduction plan that suits you.
6. Start Saving Money
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The younger generations understand online banking in ways that older generations never experienced in their time. You can open an online savings account with most online banks. Auto-deposit 1%, 2%, or 5% of your paycheck into your savings account whenever you’re paid. How much you deposit is not as important as getting into the habit of savings whenever possible.
If there is one thing Boomers can’t be accused of, it’s not saving money whenever possible. The One-Percenter and working-class Boomers will transfer up to $90 trillion via inheritances to the younger generations within the next 20 years.
7. Create a Budget (Update When Necessary)
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Create a household budget and keep to it. Make a consumer diary and keep track of everything you buy based on need and want. List your income, expenses, and bills on your budget. Update your budget whenever your finances change. Maintaining a budget will help you understand responsible and irresponsible financial habits you may be blinding yourself to.
8. Create an Emergency Fund
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An emergency fund self-initiated financial insurance plan to protect against unexpected financial, employment, and medical emergencies. Life is not fair. Sometimes the worst things happen at the most moments when you least expect it. Over 44% of Americans don’t have an emergency fund or couldn’t cover a $1,000 emergency if it occurred. Allocate a percentage of your check into a savings account and an emergency fund account.
9. Manage Finances With a 50/30/20 Strategy
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The 50/30/20 finance strategy involves using 50% of your income to pay expenses. Then, spend 30% on your preferences and wants. You can spend 20% on your bills. You can also customize the plan and make it 60/20/20 or other percentages according to your needs and so on.
10. FIRE Movement
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30% of Millennials in their early 30s have less wealth than Boomers did when they were in their 30s. Still, the same study found that 10% of Millennials possess more wealth today than the Boomers of the same age decades ago. Perspective matters when contextualizing generational gaps and wealth divides. If you’re a working-class or wealthier Millennial living below their means and saving money, then you might want to take that strategy to another level.
The FIRE Movement stands for “Financial Independence, Retire Early.” Adherents strive to save 50% to 70% of their income for as long as possible to retire as early as possible. This strategy is not practical for everyone. If this strategy suits your financial lifestyle, then you can bridge the generational wealth divide sooner rather than later.
11. Create a Business Plan
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Colonel Harland Sanders started selling chicken in ad hoc roadside diners he launched himself. When he was 65, Sanders used his meager $105 Social Security check to begin franchising KFC in the 1950s. Since Sanders was born in 1890, he was a member of the so-called “Lost Generation,” born in the shadow of the American Civil War and Reconstruction. The point is that Sanders only found success in his mid-60s, and he failed often before succeeding. Sanders blaming the state of the country for his struggles in business would not have helped him.
Once you get your personal finances in order, or if you can responsibly secure a business loan, you should consider starting a small business. Make a business plan that assesses the viability of the local market and potential consumer bases, and leverage your skills or access to resources to create a business. Big things start in small ways, so don’t rush and consult experts. 70% to 90% of businesses fail after a decade.
12. Invest (Like Boomers)
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When you become more comfortable with your finances, consider making investments according to your future plans and goals. Learn about how investing works and consult experts. Carefully research which businesses or startups have value that others can’t see before investing. Also, understand that it could take years before you see an ROI. Generating multiple income streams with a small business and investments can help you bridge the generational wealth divide.
13. Start a Retirement Fund (Like Boomers Do)
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You can start your own retirement fund bank account or dedicated fund with the help of an expert. Many employers offer employer-matching retirement funds, like a 401(k), where the employer matches employee contributions. Start a retirement fund as early as possible. It is another source of income that you can rely on when you’re older. About 45% of Boomers have $250,000 in a retirement account, money they have spent their lives saving away.
Bridge Generational Wealth Divide Without Blaming Boomers
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Instead of blaming Boomers for the state of your life, you may want to get life advice from them. Boomers were born into a financial and infrastructure-wrecked world in the long shadows of the Great Depression, WWI, and WWII. Life was not easy for most of them; most Boomers were taught to work hard all their lives to enjoy retirement. Many Boomers are financially suffering to help the younger generations now.
22% of tuition debt, or the equivalent of $336 billion, is owed by people in their 50s and 60s paying tuition for their adult children or grandchildren. Many senior citizens have their Social Security checks garnished over this issue. 19% of Americans over 65 work everyday jobs. While many older Americans are wealthy with political influence, most are not. Talk to a Boomer and learn about their life experiences instead of assuming how well off they are.
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Allen Francis is a full-time writer, prolific comic book investor and author of The Casual’s Guide: Why You Should Get Into Comic Book Investing. Allen holds a BA degree from Marymount Manhattan College. Before becoming a writer Allen was an academic advisor, librarian, and college adjunct for many years. Allen is an advocate of best personal financial practices including saving and investing in your own small business.
