Disproving Gen-X’s Spendthrift Reputation

When it comes to financial matters, the adult children of baby boomers defy the traditional Gen-X “slacker” stereotype. According to the “Ameriprise Financial Money Across Generations” study, adult children of boomers are fixated on finances. In fact, 87% of the adult children of boomers said it is very important to them to assure a financially secure life. Other goals: Seventy-two percent of adult children of boomers said it is very important to them to substantially help their children or grandchildren pay for education (compared to 50% of boomers and 38% of boomers’ parents). Also, compared to their parents, twice as many adult children of boomers (60%) said that it is very important to them to preserve wealth to leave to their children.

In other insights, the study disproved Gen-X’s spendthrift reputation. For example, illustrating frugality in a difficult market, the adult children of boomers expressed the lowest level of confidence that now is a good time to make major purchases. More than one third (36%) said “now is a good time to wait” before buying, compared to 28% of both boomers and parents of boomers. What’s more, the adult children of boomers were the most likely to strongly agree with the statement, “I don't like to be in debt at any time” (80% compared to 68% of baby boomers).

However, the survey also found Gen-Xers were not confident in their own money management skills. When asked, “Do you think your generation, your parents’ generation, or your grandparents’ generation has the best money management skills?,” only 15% of the adult children of boomers said their own generation. Almost a third (31%) of Gen-Xers said their parents’ generation had the best money management skills, and 53% said the boomers’ parents’ generation is the best at handling money.

In spite of their perceived lack of money skills, the adult children of boomers are the most optimistic generation about their financial futures. Forty-six percent of the adult children of boomers said they are very optimistic about their personal financial future, compared to 39% of boomers and 28% of the boomers’ parents’ generation. Additionally, 48% of the adult children of boomers said they are very confident in their ability to reach all of their financial goals over time, while only 36% of boomers and 34% of boomers’ parents indicated they feel the same way.

This may be an interesting launching pad to talk to your adult children about money.