10 Things Boomers Spend Money on That Millennials Don’t

Boomers vs Millennials. What are some of the major differences in how these two generational groups spend their money? A recent Bank of America study revealed that while Baby Boomers control most of the nation’s wealth, their spending habits might surprise you. Each generation spends their money differently, but in this article, we will dive into how exactly each age group approaches their hard-earned cash. Of course, there will be outliers in both categories, but that goes without saying. So let’s get into it and explore the spending habits of these two generations.

Cable TV

The Boomer generation is known to prioritize reliability in their spending. A study by Statista revealed that 40% of Baby Boomers watched cable daily, compared with just 25% of millennials. To most Boomers, the added expense of cable TV subscriptions is worth the access to the channels and programs they know and love with the perk of not having to learn new technology. So, Boomers and cable TV are bread and butter! This group often sticks to the traditional cable packages, which are known to be more expensive, from $50 to well over $100 monthly. Whereas Millennials stick with Netflix and Hulu subscriptions. Paying significantly less at around $10 to $20. 

Landlines

A report released by the CDC revealed that about 45% of people over age 65 lived in a home with only wireless phones, compared to 83-87% of Millennials. While most of the younger generations grew up with a cell phone and never experienced calling their friends via a landline telephone, it is one thing that the Boomer generation and the Millennials have in common. However, the Millennial generation only experienced the landline during their younger years. By the time most of them were teenagers, cell phones were all the rage. For Boomers, however, the landline still remains a dependable comfort and has become part of their routine. To the younger generations, spending $45 a month for something that seems redundant seems silly. but for the Boomer generation, it’s all about the added reliability and security of having a physical phone in their home. That being said, two-thirds of baby boomers own a smartphone, they just prefer to keep one foot in each era of technology. 

Print Media

45% of Baby Boomers have an active newspaper or magazine subscription compared with just 33% of digital-native Millennials. Many Boomers don’t relate to the frustrations that the younger generations feel when they have been reading (or have read) an article and go back to find it for it to only be gone. The Boomers still enjoy the tangible news offerings. From being able to complete the daily crossword by hand to experiencing a more in-depth and trusted source of information. While this habit can cost $10 to $30 a month instead of using free online options, it’s a habit that older folks enjoy.

Greeting Cards

The stereotype of getting a birthday card in the mail from Grandma still rings true even in 2024. Older adults still purchase the most greeting cards, compared to any other generation. For Boomers, a “Happy Birthday” text simply isn’t enough. This generation appreciated the more traditional practice of writing physical cards for their sentimental touch and personal gestures. And even while they buy fewer of them, Millennials are willing to spend more on each, averaging $3 to $6 per card for certain occasions. Though the preference for Millennials is to opt for an emoji-filled text or social media post, Boomers appreciate the offline connection and higher emotional value they believe physical cards offer.

Specialty Home Appliances

While Millennials stand by their $20 coffee maker and hand mixer until it inevitably breaks and they have to buy new ones, the Boomer generation tends to spare no expense on their home and kitchen appliances. This tendency may stem from a commitment to home cooking and entertaining, and a desire to possess the ideal tool for every culinary task. While Boomers are more inclined to spend extra on things like espresso machines, bread makers, and food processors, Millennials tend to opt for a more practical, cost-effective, versatile appliance, or none of the above and choose to eat out or order delivery.

Larger Vehicles

While the Millennial generation chooses to drive smaller, more economical calls, many members of the Boomer generation view their vehicles as not only means of transportation but also as a status symbol. They tend to splurge on purchasing spacious sedans and SUVs, which have a higher initial cost and tend to cost more in fuel and increased maintenance. Millennials often go for more environmentally friendly vehicles, or alternatives like public transit, cycling, scootering, or car-sharing. The younger generation is also found in the throws of parenthood, making it all the more likely for them to go for efficiency and lower cost than their older counterparts.

In-Store Shopping

Boomers also shop differently than Millennials, reflecting the environment they grew up in. Boomers tend to prefer spending more time and money on an in-person shopping experience, while Millennials tend to complete most of their shopping online. This trend of preferring an in-person shopping experience to an online one holds, whether at a department, a discount store, or even specialty stores. If it can be ordered online instead of having to get out and go into a store, you can bet your biscuits that Millennials will do just that.

Travel

Millennials are known for their love of travel, but they tend to accomplish it by scrimping and saving, or doing it on a shoestring budget. The Boomer generation, however, often spends about one-third more on each trip than Millennials do. Boomers remain the largest demographic of cruise vacationers, though the Millennials’ interest in this form of travel has been growing since 2020. While Boomers may have more money to spend on travel, that doesn’t stop Millennials from wanting to travel as well. Whether cruising, just a quick weekend trip, or an all-inclusive option for family vacations with children, everyone wants to get out there and see the world.

Checks

While older generations are more familiar with checks and more likely to use them, Millennials are not. According to a Federal Reserve Bank of Atlanta report, each year of age makes a person half a percent less likely to prefer checks. With all the electronic payment options out there like PayPal, Venmo, and Zelle, the younger generations just don’t see the purpose of having a checkbook. If you ask a Millennial when the last time they used a check was, I bet (as a Millennial, myself) they wouldn’t be able to tell you.

Bar Soap

Liquid soap didn’t actually hit its stride until sometime in the 1980s, so it’s no surprise that more Boomers use bar soap. Younger generations think that liquid soap is less messy and harbors fewer germs. Liquid soap is also easier to use with small children since it’s not as slippery as bar soap. 

Boomers Vs Millennials

While technology and trends evolve rapidly, spending habits are often ingrained by the economic realities of a generation. The Boomer generation is now reaching retirement age and is moving more towards prioritizing discretionary spending, after spending years working and saving their money. The Millennial generation is in their child-rearing, and family years, facing rising costs of living, and is learning to save effectively. The spending differences between these two generations, while different on the surface, are the same. We all spend money on the things we prioritize the most.  

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