While it’s a mistake to pigeonhole individuals, researchers generally define generations by the years in which they were born. When we consider how different generations are spending their money, it’s reasonable to consider that people do select products and even make major purchases like cars, based on their stage in life and financial condition.
The Greatest Generation: born 1901-1924, they endured the Great Depression and served in World War II. Those who remain are well into their 90s. They value hard work and sacrifice, and they’re concerned with leaving a financial legacy for future generations.
The Silent Generation: Many from the Silent generation also served in World War II. Born 1925-1942, their nickname comes from a strong tendency toward caution and conventionality. Raised during the depression, the Silent Generation is frugal, disciplined, and values hard work and sacrifice. They keep a low profile and avoid “rocking the boat” to preserve and protect what they worked so hard to earn.
Baby Boomers: This generation has dominated culture for decades. Named for the surging post-World War II birth rate, scholars have argued that Boomers comprise two different groups: those born 1946-1954 and those born 1955-1965. The latter group, dubbed “Generation Jones” by author Jonathan Pontell in a book of the same title, derives its name from the slang term “Jonesing,” meaning yearning for something they missed out on—in their case, the idealism of the ‘60s. Characterized by dreams deferred because of economic recessions and tight job markets, this group became known as driven, competitive, and possessing a strong sense of irony. Both segments of the Boomer generation spend more on healthcare and save less than they should for retirement. They have significant credit card debt, possibly because they’ve had more time to accumulate it or because declining job opportunities cause them to rely more on credit.
Generation X: Born 1965-1979, many X’ers grew up as latchkey children of divorced parents. They didn’t experience any of the ‘60s idealism but reached maturity during the AIDS epidemic. Popular culture has depicted them as harboring an underlying sense of insecurity and ennui. They have higher incomes and spend more, but they also save a greater percentage of their after-tax income.
Millennials: Millennials are the much-maligned generation that gave us avocado toast and living in their parents’ basement. Born 1980-1994, their advanced education has saddled them with extensive student debt. They have a lower rate of homeownership than Boomers or X’ers. They experienced 9/11 in their most formative years, and they’re the first generation to grow up with the Internet. Millennials spend more percentagewise on housing, transportation, and food (including fast food and restaurants) than either Boomers or Gen X.
Generation Z: born after 2000, Gen Z is just coming into view as a cultural and consumer group. They are the first generation constantly connected through social media and mobile devices.
When it comes to how they spend money, the different generations show some general similarities within themselves, but overgeneralizing would deny the individuality of people in every generation.Read more
If you’ve decided to take the leap and use your vacation home as a rental property, you’re in for a treat. Though owning a vacation rental may take some work, you’ll definitely reap the various rewards that come with it. As more and more people recognize the advantages of using vacation rentals, understanding how to paint your rental home in the best light will become vital. Here we’ve listed some incredible tips for vacation rental owners so that you can fill up your guest book for months to come.Read more
We have a rather romantic contributed post today on how to have a cheaper Valentine's Day. Save money, but still have a great time with your Valentine! Win-win I'd say! Let us know how you're spending V-day in the comments.
It’s almost that time of the year again where we spend a whole day telling our other half how we feel about them and showing them how much we love them. Valentine’s Day is a holiday which people have been celebrating for hundreds of years, and it is often seen as the most romantic day of the entire year.
However, Valentine's Day can also be rather expensive sometimes. During these first few months after Christmas, many of us are in debt or considering credit consolidation to take care of our money. So, spending money on an expensive date or a romantic getaway is the least of your priorities.
There are luckily some ways that you can enjoy this time of the year without breaking the bank. You can still show each other how much you love the other without having to fork out a ton of money for the pleasure. Instead of going away for the weekend or booking a table in the most extravagant restaurant you can, why not spend some quality time together at home?Read more