3 Money Habits Millennials Have That Are Different From Their Parents’
Written by
Jake Safane
Edited by
Jenna Klaverweiden
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Millennials have taken a lot of heat over the years about their financial habits, with some thinking that the generation is prone to making frivolous purchases rather than focusing on their personal finances. The reality, however, is that many differences can be explained by the broader economic circumstances, like soaring costs of housing and education.
For example, while the cost of electronics has plummeted since 1990, college tuition has risen over 400%, while costs of other critical areas, like housing, healthcare and daycare, have risen faster than median wages, according to a 2024 analysis by the U.S. Department of the Treasury.
Still, millennials are finding ways to respond to these circumstances. “Millennials are redefining financial wellness by prioritizing adaptability, financial transparency and systemic awareness in ways that set them apart from previous generations,” said Lindsay Bryan-Podvin, LMSW, a financial therapist and founder of Mind Money Balance.
Specifically, they’re embracing the following money habits that differ from how their parents approach personal finance.
Also see the four worst mistakes millennials can make with their money — and how to avoid them.
Utilizing Technology
Coming of age in the internet era, millennials are often utilizing technology more in their financial lives than their parents do. For example, millennials are utilizing automation, such as autopay and autosaving features, along with budgeting apps and digital banking tools, according to Bryan-Podvin.
Millennials are also utilizing peer-to-peer payment apps to send money quickly to friends, as well as technology like buy now, pay later (BNPL), she said.
That’s not to say that technology like BNPL is always advantageous, but if used wisely, it can be more affordable than going into credit card debt.
Being Socially Conscious With Purchases
Another key differentiator is that millennials are often using their purchasing power to align with different values.
“Millennials prioritize spending on experiences over things, a shift from their boomer parents, who valued homeownership and accumulation of ‘stuff’ as markers of success,” Bryan-Podvin said. “While the boomer generation may turn their nose up at it, millennials are willing to pay more to purchase from values-driven stores and companies.”
Pushing for Systemic Change
Lastly, some millennials are pushing for systemic change to help overcome some of the broad barriers this and younger generations face.
“Millennials are more likely to side-eye the old ‘pull yourself up by your bootstraps’ narrative. This generation recognizes external factors like wage stagnation, housing affordability and student loan debt aren’t just personal challenges but systemic issues,” Bryan-Podvin explained.
In fact, according to an October 2024 survey from Independent Center, millennials and Gen Z are reshaping the American Dream to align with more current challenges and opportunities, citing an increased difficulty for younger generations to buy a house, start a family and save for retirement.
Learning From Your Parents
Despite systemic factors, millennials have to play the hand they’re dealt to some extent — and they can potentially utilize those cards better by also incorporating some lessons from their parents.
“Since time-traveling and being born into a more financially prosperous time isn’t an option, here are a couple of things millennials can borrow from their boomer parents to help them financially,” Bryan-Podvin said.
One is to scrutinize whether something that is “on sale” is really worth the money at all, she explained. Even if you can’t always cut your way to financial success, there can still be some truth to people falling into the trap of overspending.
“I remember spending my restaurant hostessing money on new clothes from the mall, excitedly telling my mom I ‘saved’ because they were on sale. Her retort was almost always a version of ‘you aren’t saving money when you’re spending it.’ Irritating? Absolutely. But as an adult, I find myself turning to her wisdom when I add another thing to my cart because it’s ‘on sale.'” Bryan-Podvin said.
Another tip is to invest early and consistently.
“While a pension can seem like financial lore, boomers benefited from small, consistent investments over time. Millennials can and should start investing in their figure via an employer retirement plan or contributing to their own IRA. Even $25 per month compounds over time and can make a large difference in their future,” Bryan-Podvin explained.
Lastly, consider the role of jobs and longevity in certain positions could help finances.
“While I’m not suggesting that anyone stick out a toxic job, boomers stayed with their employers longer. There’s a balance between job-hopping and strategically maximizing benefits and stability; for millennials, it’s worth considering the financial security of a less-than-ideal job before leaving,” Bryan-Podvin said.
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