Don’t worry. This isn’t a “hey boomer” scenario, but Gen Zers and millennials reading this should consider taking some financial advice from Gen X.
Not just because Gen X is considered the “cool generation. ” Don’t take my word for it. Vogue recently said as much. There are more valid reasons younger folks should consider heeding the financial wisdom of Gen X. For example, like millennials and Gen Z, Gen X had limited access to defined benefit pensions, grappled with consumer and student loan debt and for many in the older cohort, home ownership was far from a sure thing.
More so than boomers, Gen X has endured financial experiences that are relatable to the two younger demographics, implying that when the older folks speak, the youngsters should listen. Alright, perhaps that’s a bit heavy-handed, but Gen X has perspective on matters such as financial regret and not starting on retirement planning soon enough.
Speaking of Retirement Planning…
If there’s one financial issue young people should listen to Gen X about, it’s retirement planning. As in don’t delay on this critical element in one’s financial future.
The CFP Board’s Lessons Learned: A Survey of American Gen Xers indicates 95% of those polled from that age group admit their financial missteps have been expensive with 37% saying their biggest regret is not getting started on retirement planning when they were young.
“More than half (53%) of Gen X Americans wish they had planned for retirement earlier, while 43% believed they had ‘plenty of time’ to plan when they were younger — a misconception that continues to impact their sense of financial security today,” according to the survey.
Indeed, Gen Xers are worth listening to because in financial terms, they’re battle-scarred and, unfortunately, have the losses to prove it.
“The financial impact of Gen X's regrets extends far beyond retirement accounts. Nearly half (48%) estimate their financial missteps have cost them at least $100,000 over their lifetimes, with over one in ten (13%) reporting losses of $500,000 or more,” adds the CFP Board.
Gen X Says Be Informed About Myths
Gen X has some other important things to say regarding money, including the importance of myth-busting. Their perspective is relevant because some of these myths persist today and haven’t been adequately busted.
“Gen X's regrets weren't just about timing; they stemmed from fundamental misconceptions that today’s young adults may also hold,” concludes the CFP Board. “Nearly a quarter thought credit cards were a good way to fund their lifestyle (23%), or that you need a high income to build wealth (22%). Just as many dismissed the need for an emergency fund (20%), while others assumed financial setbacks only happened to other people (20%), leaving them unprepared when challenges inevitably hit. ”
Bottom line: Sometimes, it’s worth it to listen to one’s elders. So if you’re a millennial or a member of Gen Z, go find a Gen Xer. Now.
