Save like a boomer, spend like a zoomer? Decoding generational money habits

Financial planning isn’t just about crunching numbers and counting down to retirement, it’s about context. 

The generation you’re born into often shapes your views on money, risk appetite, level of trust in financial institutions, and approach to saving. From Baby Boomers approaching retirement to Gen Z entering the workforce, we all face a distinct financial situation with its own challenges, habits, and blind spots.

These generational differences should also fundamentally affect how the financial services industry adapts and tailors offerings that resonate with individuals at their specific stage of life.

Just as our personal stories shape our attitudes toward money, our stage of life influences how we plan, save, and invest. 

With pressure points and priorities shifting over time, each generation brings distinct financial behaviours to the table, offering lessons we can all learn from, no matter our age. 

Baby Boomers: Comfortable, but cautious

Born between 1946 and 1964, Baby Boomers span a broad spectrum – whether by choice or necessity, some are still working, others have already retired. While this generation typically boasts property portfolios and pension plans, many underestimated how long they’d live, or how expensive those later years would be.

Boomers are relatively under-advised. Retirement annuities (RAs) and tax-free savings accounts (TFSAs) are critical now to supplement pensions, especially for those who plan to work part-time or consult. Medical costs, estate planning and drawdown strategies are often overlooked until it’s too late.

Generation X: Squeezed in the middle

Gen X, born between 1965 and 1980, is the “sandwich generation” –  often caring for both their elderly parents and their children, while still paying off bonds. These competing financial responsibilities, coupled with high levels of personal debt, make it difficult to prioritise long-term savings.

While Gen Xers are typically at their peak earning potential, they also tend to be underfunded for retirement.  According to 10X Investments’ Retirement Reality Report, a worrying 72% of people whose retirement plans were not on track cited “not being able to save enough” as the main reason for being behind. Most contribute to pension funds through their employers, but few feel that they are able to maximise those contributions or supplement them with discretionary investments. 

Debt is a problem. Bond repayments, school fees, car finance, and even student loans taken on for children eat into disposable income. Gen Xers appear increasingly responsible for funding their children’s tertiary education. One of South Africa’s biggest student loan providers reported in 2024 that student loan demand was up by 10%. In 2022, Universities South Africa warned that student debt hit R16.5 billion, up from R14 billion in 2019, highlighting growing financial pressure on parents.

Even with all the pressures, this stage of life is often when building up retirement savings starts to matter more. Small, consistent contributions can add up over time — and while it’s not always easy to prioritise, finding room to save now can help ease future financial strain.

This generation is also more digitally fluent than Boomers but less engaged than Millennials or Gen Z when it comes to financial apps and platforms. This opens up opportunities to engage them with hybrid planning tools that blend tech with personalised services.

Millennials: Digitally savvy, financially wary

Millennials were born into uncertainty (between 1981 and 1996). They entered the workforce during or after the global financial crisis, and many are wary of traditional financial institutions. This has resulted in a generation that worries about money and educates itself online.

Millennials tend to favour accessible, flexible investment options like TFSAs and exchange-traded funds. Many use budgeting tools, banking apps, and digital platforms to manage money, but they are also grappling with delayed homeownership, the gig economy, and fluctuating income.

Many people prioritise lifestyle goals rather than saving for retirement. Their savings strategies are often shaped by a desire for flexibility, control, and autonomy. Consistent with global patterns, this younger demographic favours a digital-first approach, with 59% leaning towards mobile apps. Many also just want lower fees. Less than 2 out of 5 millennials say they are satisfied with their current investment fees.

Clearly, for the younger generation, clunky interfaces and hefty charges are so last century.

Gen Z: Raring to go

Young adults, Gen Z (born after 1997), are still developing their relationship with money. These digital natives are likely to invest early, learn from influencers, and explore fintech innovations. Favouring instant gratification, they struggle with money and lack a long-term savings mindset. Short-term goals, like travel, gadgets and lifestyle experiences, often take precedence over retirement or wealth accumulation. Still, there is growing interest in sustainable investing, ethical finance, and gig-based income models.

With youth unemployment now at 46.1%, financial planning for Gen Z must address both mindset and circumstance. Encouraging small, consistent steps will help build lifelong habits.

Each generation might have a different starting line, but the end goal is the same: financial freedom. For the industry to really deliver, it needs to understand those differences and respond to what people actually need at each stage of life.

Whether you’re a Boomer fine-tuning your retirement plan, a Gen Xer pulled in all directions, a Millennial making sense of a shaky economy, or a member of Gen Z, just finding their place in the world, there’s always a way to get on track. With the right plan – and the right advice – it’s never too late (or too early) to take control. By borrowing the best habits from each other and learning from others' mistakes, we can all build a more secure future.

Lindokuhle George  is a Junior Investment Consultant at 10X Investments. 

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