From putting spare change in cookie jars to using auto-savings apps on smartphones, our approach to building financial security has undergone significant changes across generations. The questions of when, why, and how people save money are just as important as how much they save.
Boomers and Gen X grew up in a world where pensions and checkbooks were common. What about millennials and Gen Z? We’re more concerned with robot advisors, finfluencers, and FIRE goals. So, how have savings habits shifted across different generations?
Let’s examine the statistics, habits, and attitudes that describe each generation’s connection with savings.
Boomers: Late Bloomers with Huge Balances
Boomers (born 1946–1964) grew up in a very different financial environment from today. It was easier to accumulate wealth back then, even without engaging in aggressive investing methods, thanks to traditional pension schemes, high savings account interest rates, and relatively affordable housing.
Still, many Boomers didn’t start saving for retirement until they were about 35 years old. This was partly because financial planning wasn’t mainstream at the time, and the 401(k) didn’t become common until the 1980s.
However, with time on their side and steady revenue during decades of economic growth, Boomers have accumulated significant savings. Today, their average 401(k) balance stands at $241,200, the highest of any generation.
Many Boomers favor outdated savings methods such as physical banks, CDs, and low-risk investments. Even though they’re not tech-driven, their long-term consistency and early economic favorability have prepared them for retirement in a way that even new generations respect (and envy).
Generation X: The Ones Squeezed in the Middle
Gen Xers (1965–1980) are in between the analog and digital worlds. They were the first to completely embrace 401(k)s, but also the first to acknowledge the end of pensions. Starting to save at age 30, they were earlier than Boomers but still faced challenges, including rising living expenses, college costs, and the 2008 financial crisis.
Their average 401(k) savings now hover at approximately $178,500, placing them in a solid middle position. However, many believe they’re falling short, particularly when it comes to retiring on time.
Gen X is the most active in prioritizing retirement savings, with 40% saying it’s their main financial objective. However, with aging parents, college-bound children, and rising inflation, many Gen Xers are dealing with much more than only compound interest.
Millennials: Financially Aware, Yet Burdened
Millennials (1981–1996) are frequently trapped in a web of economic contradictions. They started saving earlier than previous generations, around age 26, and were among the first to take advantage of auto-enrollment and digital savings tools.
However, they also came of age during two economic catastrophes: the Great Recession and the COVID-19 pandemic. Together with historically high student loan debt and overpriced housing costs, this generation is experiencing severe financial hardships.
The average Millennial’s 401(k) balance is around $59,800, and they lag behind Boomers and Gen X in total retirement savings. Nevertheless, they lead in financial education and awareness. Millennials are more likely than any other generation to seek out personal finance content, utilize budgeting apps, and prioritize emergency funds.
Around 41% are saving up for emergencies, a move motivated by life experience and economic uncertainty.
Gen Z: Digital Folks with More Financial Benefits
The idea of saving money is being redefined by Generation Z (born 1997–2012). Thanks to TikTok, YouTube, and mobile fintech apps, many have started saving money at the age of 20, and others have even begun investing while still in high school!
Their average 401(k) is only $11,300, which isn’t surprising since they’re just getting started. Remarkably, almost half of Gen-Z (47%) report saving more than 20% of their income – that is significantly higher than any other generation!
Digital access, social media trends, and a desire for financial independence, frequently spurred by the FIRE (Financial Independence, Retire Early) movement, have a significant impact on their savings habits. Gen Z is also very passionate about side hustles, passive profits, and escaping the 9–5 trap.
Their financial strategy is about escaping, not about surviving.
A Comparison by Generation
| Generation | Starting Age of Saving | Average 401(k) (2024) | Saving percentage | Significant Traits |
| Boomers | 35 | $241,200 | 18% | Stable, conventional, pension-minded |
| Gen X | 30 | $178,500 | 17% | Balancing loans & family, late savers |
| Millennials | 26 | $59,800 | 36% | Tech-friendly, vigilant, burdened with debt |
| Gen Z | 20 | $11,300 | 47% | Digital natives, go-getters, FIRE-oriented |
What’s Driving the Change?
Economic Pressure
Boomers purchased houses at a time when houses cost roughly 3 times their annual salary. Millennials and Gen Z are facing prices that are currently 8–10 times higher in many places, changing how they save and spend money.
Social Influence
Where older generations depend on in-person financial guidance, younger people are turning to finfluencers on YouTube and TikTok. Presently, more people are learning about finances at an earlier age.
Access to Technology
Millennials and Gen Z have always had personal finance at their fingertips. Apps such as Mint, Acorns, and Robinhood have made saving and investing a simple swipe-and-tap game. Boomers, on the other hand, had to call their banker to do the same!
Goals & Principles
Boomers and Gen X mainly focused on retirement and security. Millennials and Gen Z have diverse financial objectives, prioritizing flexibility, mental well-being, travel, and even early retirement. The meaning of success has changed with time, and with that, so have money habits.
A Piece of Advice for All Generations
For Boomers and Gen X: Do not undervalue younger generations simply because their numbers are lower. Many people started earlier and are saving wisely, even if they haven’t yet reached huge financial milestones. Also, don’t hesitate to adopt newer tools, such as robo-advisors or mobile apps, because they can help you save more efficiently.
For Millennials and Gen Z: Congrats on your early entry to the game, but you must make sure to stay grounded. Not all financial advice on social media is sound. Pursue real education, avoid comparison traps, and concentrate on long-term habits over viral fads.
Filling the Gap
It’s clear that each generation has faced very different circumstances and made savings choices based on the resources available to them. Boomers had time and pensions. Gen X navigated transitions. Millennials faced significant economic challenges. And Gen Z? They’re just trying to move forward with their eyes wide open.
However, despite all the quirks and differences among generations, one fact remains constant: saving money is essential for everyone. Whether you’re putting coins in a jar, maxing out your Roth IRA, or saving spare change in an ETF, you’re investing in your future self.
So, it’s never too early or too late to start saving smart, no matter your age or how much you have in your bank account!
