7 Wildly Common Financial Mistakes Gen Z Can Learn From Millennials
Gen Z can learn a lot about what not to do with money from their elders. This young generation is just starting out, making now an ideal time to understand where millennials went wrong.
A Reddit user asked older millennials to name their biggest mistakes, and many highlighted financial blunders. Here’s a look at seven all-too-common money mishaps elder millennials admitted to making.
Check Out: 4 Things Gen Z Gets Right About Money That Boomers Often Got Wrong
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Staying Too Long in a Comfortable Job
There’s something to be said about knowing a job inside out. Staying in a role due to feeling content or not wanting to start a job search might seem reasonable, but doing so has stunted many elder millennials’ salary growth.
For existing employees, salary increases for total compensation — i.e., merit, promotions, cost of living and other adjustments — average 3.5% per year, according to Mercer as of 2025. However, a 2026 Bank of America report revealed a 6.7% average pay raise for job changes associated with lower- and middle-income households — down from 8.6% in 2025 and double-digit increases in 2021 and 2022.
Not Asking for an Annual Raise
Many elder millennials who weren’t automatically granted a wage increase from their employer regret not requesting one. Even if they only receive the standard average pay increase of 3.5% per year — according to Mercer as of 2025 — it can help keep up with the cost of living.
For example, as of April 2026, the consumer price index for all items was 3.8% higher than it was during the previous 12 months, according to the U.S. Bureau of Labor Statistics (BLS). In this economy, an ability to keep up with the cost of living isn’t something to overlook.
Not Buying a Home
In 2010 – when the oldest millennials were in their mid-to-upper 20s — the median price of existing homes was $173,000, according to the Office of Policy and Development and Research. On Dec. 30, 2010, the average interest rate for a 30-year, fixed-rate mortgage was 4.86%, according to Freddie Mac.
Since then, the housing market has seen a dramatic shift.
In March 2026, and the median sale price of a home is $358,660 — as of March 31, 2026 — according to Zillow. The average interest rate for a 30-year-fixed-rate mortgage was 6.51%, as of May 21, 2026, according to Freddie Mac.
The future of the real estate market is uncertain. If Gen Zers can find an affordable home, snapping it up could be a lucrative move.
Not Saving Enough for Retirement
Many millennials are putting money aside for retirement, but not at the rate they need for financial security. Specifically, this generation has an average 401(k) balance of $67,300 and an average IRA balance of $25,109, according to Fidelity.
Only 55% of millennials think they will be financially prepared for retirement when the time comes, according to a Northwestern Mutual survey. General speaking, the financial services company recommends saving approximately 25 times your expected annual spending.
Gen Z may already have an edge on millennials, as the average age they started saving for retirement was 22 years old, compared with 28 years old for millennials.
Not Choosing a College Major Wisely
This one is tricky, as you don’t want to choose a major that doesn’t interest you. However, it’s also important to think about earning potential when deciding on an area to base your future career.
For example, as of 2024 computer hardware engineers earn a median salary of $155,020 per year, according to the BLS. On the other hand, sports coaches and scouts earn a median salary of $45,920 per year — as of 2024 — according to the BLS.
Having an Expensive Wedding
Many elder millennials feel their pricy wedding wasn’t money wisely spent. Today, the overall average cost of a wedding is $34,200, according to The Knot 2026 Real Weddings Study.
To put this in perspective, the median sale price of a home is $358,660 — as of March 31, 2026 — according to Zillow. Hypothetically speaking, if you were to skip the expensive wedding and put the money toward a house instead, you’d have nearly a 10% down payment on a home at the median U.S. sale price.
Racking Up Credit Card Debt
More than three quarters — 78% — of millennials with a credit history have a balance, according to Experian. As of 2025, the average millennial credit card balance was $6,961.
What might seem like a few harmless credit purchases could become high-interest bills that haunt you for years. Avoid this by not charging anything you can’t pay off in full each month.
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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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