Gen Z Is Doing 6 Things Right With Money That Boomers Wish They'd Known at 25
Boomers often say they wish they’d started earlier.
Gen Z is trying not to make the same mistake. Raised during economic uncertainty and constant access to financial information online, many people in their 20s are approaching retirement savings, side income and financial planning earlier than previous generations did at the same age.
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From negotiating salary to building multiple income streams, Gen Z is doing these six things with money that boomers wish they’d known at 25.
1. Saving Sooner
A growing number of Gen Z workers are opening retirement accounts much earlier than previous generations did at the same age.
“A lot of boomers I talk to, look back and say the same thing: They wish they had opened a Roth IRA in their 20s,” said Alex Langan, chief investment officer at Langan Financial Group.
Part of Gen Z’s advantage, Langan said, was growing up with constant access to financial information online, from investing apps to YouTube videos and podcasts focused on money management.
“They’re opening accounts earlier, contributing to employer plans sooner and actually thinking about retirement before it feels urgent,” he said.
2. Not Leaving Free Money Behind
Retirement benefits are becoming a bigger priority for Gen Z workers entering the workforce.
According to a recent Transamerica Institute survey, 76% of Gen Z workers are saving in retirement-designated plans, whether at work or independently. They also began doing so early, with a median starting point of age 20.
“One of the most important financial decisions anyone makes in their life is the decision to participate in an employer-sponsored retirement plan,” said Robert R. Johnson, a finance professor at Creighton University. “Perhaps the worst financial mistake anyone can make is turning down free money.”
3. Building Multiple Income Streams
Gen Z came into adulthood after two recessions, a global pandemic and growing concerns about automation.
Nearly two-thirds of Gen Z workers view having side gigs as a key to financial freedom, said Cody Schuiteboer, president and CEO of Best Interest Financial.
“Around 57% of Gen Z workers already have an extra job, compared to 21% of boomers,” he said. “It shows that having a side hustle is not an exception in their generation, but rather a norm.”
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4. Negotiating Beyond Salary
Salary is no longer the only thing younger workers evaluate when comparing job offers.
Gen Z workers are more likely to negotiate a full compensation package, including retirement benefits, health insurance and workplace flexibility.
“More than boomers of their age, Gen Z conducts research to see what kind of pay they deserve,” Schuiteboer said. “If they find out the offer is not competitive, they won’t take it.”
5. Stress-Testing Big Purchases
Buying a home as quickly as possible used to be a significant financial milestone.
However, Gen Z is approaching large purchases more cautiously because of higher housing costs and economic uncertainty. They’re also more likely to stress test major financial decisions before committing.
“Gen Z doesn't buy property just because everyone says so,” Schuiteboer said. “They try to evaluate if the homeownership would be beneficial financially, considering their income and current prices.”
6. Talk About Money in Relationships
For baby boomers, money conversations used to stay behind closed doors in many relationships.
But that attitude could haunt them as many are now navigating late-life divorces after decades of marriage and without a plan in place.
In many cases, couples are fighting over assets they built together over decades and losing a significant portion of their net worth to litigation, said Amanda Barron, co-founder of legal-tech company Jointly.
“Many of them tell me they wish they'd had the conversation upfront,” Barron said. “Not because they expected to divorce, but because having clarity on money would have saved them years of resentment and in some cases, saved the marriage entirely.”
She added that Gen Z is often more comfortable discussing salary, debt, spending habits and long-term financial goals openly.
“They talk about money with friends, on TikTok, with their partners,” Baron said. “They expect financial alignment the same way they expect alignment on kids or careers.”
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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