6 Things Boomers Continue To Waste Money On
Written by
Nicole Spector
Edited by
Cory Dudak
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Each generation has its weak spots and bad habits when it comes to spending. Millennials are known to overspend on health and wellness trends. Gen X tends to overspend on housing and Gen Z has a reputation of overspending on events. And baby boomers have their areas of excess, too.
Let’s look at six things boomers just keep wasting their money on. If only boomers could see that hanging onto these things is holding them back and possibly thwarting their retirement plans.
Landline Phones
Landline usage in the U.S. has been declining as mobile phones continue to gain widespread acceptance as our primary phones, but many boomers are still paying for landlines. Half of Americans 65 and over (50.5%) have a landline phone. A landline costs between $20 and $60 a month — a total waste if you have a reliable mobile phone.
Cable TV
Many boomers remember, however vaguely, when TV first came into their lives, replacing radios as their at-home vessel for entertainment and news. Then came cable television. By 1992, 60% of American households had a cable TV subscription package.
Thanks to the rise of streaming services, there’s a strong argument that cable TV is no longer “worth it.” You can save hundreds — possibly north of $1,000 — a year by cutting the cord. But many baby boomers don’t even want to think about parting with cable TV and are the most loyal to this service among all living generations.
Chain Restaurants
There’s a time and place for dining out. If you have the means, it can be a satisfying splurge, but if you’re regularly dining out at chain restaurants, as many boomers are, you’re wasting money. Casual dining chains have doubled in price over the past five years, while the quality of their food has remained the same, if not declined due to corporate cost cutting.
Boomers like chain restaurants because they’re traditionalists and the least open to nontraditional restaurant experiences. A recent YouGov study found that one of boomers’ most loved chain spots is The Cheesecake Factory, where a meal with dessert (but not alcohol) for two can easily exceed $80, before tax and tip.
An Unnecessarily Large Home
There are good reasons not to downsize in retirement, but they only hold up if your finances aren’t stressed and if your home is equipped to accommodate you once you lose mobility and/or become a fall risk (this is a very common occurrence, no matter how intensely we wish it wouldn’t happen to us). Many boomers own homes that were ideal for raising kids but are now unnecessarily big.
Downsizing can save you money in a number of ways. Your next home will likely be a lot cheaper (and you’ might be flush with the profit from your previous home). Additionally, you’ll likely pay less for property taxes, home insurance and maintenance.
New Gas-Powered Luxury Cars
Just as many boomers are in total denial that they’ll likely see some decline in their mobility, they’re in denial about driving. Many believe that they’ll be able to drive for the rest of their lives. And many are still loyal to gas-powered luxury cars. Why buy a new luxury car in your 60s or 70s when the recommended average age to give up driving, based on eye health alone, is 75? It makes much more financial sense to buy a used car.
Adult Kids
It’s hard to say no to our kids — even when our kids are no longer kids. Often, boomers are saying yes with their checkbooks or what’s worse, their credit cards. Half of parents with adult children provide regular financial assistance to their grown offspring.
A survey by Savings.com found that parents give adult children an average of $1,474 a month — and that’s per child. Footing the bill for grown kids can easily endanger your own financial security and can hold you back from retiring.
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