These are the 7 boomer money habits millennials left behind — and what they’re doing instead

MoneywiseSun, March 15, 2026 at 12:00 PM UTC

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An adult millennial son and senior boomer father with tablet sitting on stairs indoors at home.

Boomers have amassed a lot of wealth over the years — indeed, they’re considered the wealthiest generation to have ever lived.

About 73% of wealth in the U.S. is owned by Americans over 55 (including boomers and the Silent Generation), according to Federal Reserve data (1).

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So why doesn’t their financial advice make sense to millennials?

For boomers (those born between 1946 and 1964), “a unique historical situation — strong economic growth, affordable housing markets and booming equity markets — allowed them to build up a handsome fortune,” according to an Allianz report (2).

But millennials (those born between 1981 and 1996) have had a “rougher ride,” says the report, since “they were hit by one crisis after another.”

So what worked for boomers may simply not apply in today’s world — and that could be why there are some money habits that millennials just don’t get. Here are seven of them.

1. Buying instead of renting

Why rent when you can buy? For many boomers, “adulting” meant buying a house. Renting was seen as throwing money away.

According to a survey by Clever Real Estate, 84% of boomers see owning a home as a symbol of financial security and 65% say owning has given them stability (3).

But when boomers began adulting, homeownership was well within reach. In 1988, when the average boomer turned 33, the median home sale price was $110,000 (4). And the median household income was $27,230 without adjusting for inflation (5).

Millennials, on the other hand, are faced with high home prices and mortgage rates (relative to income), which in many cases is pricing them out of the market — especially during a time of job instability and economic uncertainty (6).

For millennials, renting may be their only option thanks to the high cost of a down payment, but some are finding other ways to break into the valuable real estate market.

Crowdfunding platforms like Arrived are changing the game for generations that don’t want to — or can’t afford to — buy real estate. It lets you buy a stake in rental properties and earn dividends — no down payment required.

Backed by world-class investors like Jeff Bezos, Arrived’s easy-to-use platform offers SEC-qualified rental homes and vacation rentals. Their flexible investment options allow both accredited and non-accredited investors to benefit from this inflation-hedging asset class with ease.

Just browse their vetted properties and when you find one you like, you can invest in it with as little as $100.

Another great option is mogul. This real estate investment platform offers fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.

Founded by former Goldman Sachs real estate investors, the mogul team handpicks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.

Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.

Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.

Read More: Non-millionaires can now invest in this $1B private real estate fund starting at just $10

Read More: Warren Buffett’s 8 simple and repeatable rules to get rich (and stay rich) in America

2. Keeping money in ‘safe’ accounts

Many boomers keep a portion of their retirement savings in “safe” but low-yield accounts, such as certificates of deposit (CDs).

Some may even leave their money in a traditional checking account (or even in cash), since they don’t want to gamble with their money.

Perhaps this is because, about four decades ago, CDs had a much higher average percentage yield (APY). In 1984, for example, the average three-month CD rate was over 10% (7). That’s pretty much impossible these days. Instead, returns on that “safe” account may not outpace inflation, meaning the money loses its purchasing power over time.

However, there’s still value in having some money in a “safe” account, especially as a rainy day fund. And since millennials came of age as the internet did, they may be more comfortable with online and mobile tools to manage their money, including looking for the best yield rates and investment opportunities.

That’s where an online-only, high-yield account like a Wealthfront Cash Account can come in. Offering competitive interest rates and a tech-savvy platform, the account can be a great place to grow your emergency fund.

A Wealthfront Cash Account currently offers a base variable APY of 3.30%, and new clients can get a 0.75% boost during their first three months on up to $150,000 for a total APY of 4.05%. That’s more than 10 times the national deposit savings rate, according to the FDIC’s February report (8).

With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks — so your money remains “safe” while it works hard for you.

3. Relying on Social Security and pensions for retirement

The average Social Security retirement benefit reached an all-time high of $2,071 in January, according to Social Security Administration data (9).

So it makes sense that boomers might rely on their Social Security benefit and/or pension plan for a comfortable retirement.

For millennials, however, pensions are few and far between. Before they were born, the Revenue Act of 1978 introduced 401(k)s, which eventually started to replace pensions (10). Today, only about 31% of private employers offer a pension (11).

There’s also uncertainty around the future of Social Security, with potential cuts to benefits if nothing changes by 2034 (12).

As such, millennials may be more likely to build a retirement plan based on a mix of retirement savings tools, including 401(k)s, Roth IRAs and brokerage accounts.

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4. Staying at the same job until you retire

Older generations may view job-hopping by younger generations as a lack of commitment. In their time, loyalty to one company often meant job security and career advancement — and perhaps an early retirement with a decent pension.

But for younger generations, the job market is being continually disrupted — particularly by technology. Millennials are the generation most likely to switch jobs, according to a Gallup report, and six in 10 are open to new job opportunities (13).

And this strategy is paying off for millennials. Data from ADP found that Americans who switch jobs see consistently higher pay gains than those who don’t (14).

5. Spending hundreds annually on cable

Americans spend about $121 on cable and internet every month (15).

Boomers are more likely to spend money on cable TV, even if they don’t watch all of the channels they pay for. That’s not to say they aren’t embracing digital media (they are) — but they haven’t cut the cord on cable, either.

Millennials are the cord-cutting generation. Not only can they watch what they want, when they want — without ads — but streaming services are much cheaper than cable packages. However, with a plethora of streaming services available, millennials may end up paying just as much as they would for a typical cable package.

While the average American has 4.5 streaming subscriptions, millennials are the “subscription champs,” according to Bango data. Millennials typically have between six and 11 subscriptions, and they’re the most likely to spend more than $100 per month on those subscriptions (16).

With all those services to keep track of, it’s easy for the recurring charges to slip the mind. That’s where a personal finance app can come in handy.

A quick daily check-in of your accounts can show you exactly where your money is going.

An app like Rocket Money can easily flag recurring subscriptions, upcoming bills and unusual charges by pulling in transactions from all your linked accounts.

This can help you cut unnecessary costs, and then you can manually redirect savings straight into your retirement fund. No spreadsheets, no guesswork, no stress. Small habits like this can make a big difference over time.

Rocket Money’s intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders and budgeting basics, while premium features — like automated savings, net worth tracking, customizable dashboards and more — make it easier to stay on top of your retirement contributions and overall financial goals.

6. Refusing to discuss finances

Financial topics were once considered taboo — you just didn’t talk about money at the dinner table (or any other time). Indeed, more than half (56%) of Americans say their parents never discussed money with them, according to a Fidelity survey (17).

But that’s changing. Younger generations are more open to discussing everything from how much money they’re making to their investment strategies.

Thanks to social media and TikTok money talks, financial discussions are less taboo — even if millennials may still struggle to talk about money with their parents.

7. Seeking advice from professionals

Boomers are more likely to seek professional advice on financial matters, with 39% of boomers saying they would turn to a professional first if they had questions about their finances, according to the 2024 Policygenius Financial Planning Survey (18).

Younger generations often turn to other sources for financial advice, from online resources and robo-advisors to social media influencers. But this is one area where millennials may be starting to follow in their parents’ footsteps.

As they get older, some millennials are now turning to traditional advisors for more complex financial decisions, such as investments and retirement planning.

About a quarter (26%) of millennials surveyed said they received advice from a financial advisor for the first time within the last year, according to findings from Northwestern Mutual’s 2025 Planning & Progress Study (19).

While boomers and millennials may not agree on everything — especially when it comes to money matters — it seems they do agree on having a plan for financial well-being.

And this makes sense, as research from Vanguard shows that working with a financial advisor can add about 3% to net returns over time (20). That difference can become substantial.

For example, if you started with a $50,000 portfolio, professional guidance could mean more than $1.3 million in additional growth over 30 years, depending on market conditions and your investment strategy.

But finding an advisor you can trust can feel like a tedious process, which could lead to waiting until it’s too late.

Advisor.com can help simplify the process. The platform quickly connects you with licensed financial professionals in your area who can provide personalized guidance tailored to your specific needs.

A professional advisor can help you determine how many years you have left to invest before retirement and assess your comfort level with market fluctuations — two key factors in building the right asset mix for your portfolio.

Through Advisor.com, you can schedule a free, no-obligation consultation today to discuss your retirement goals and long-term financial plan — a wise move for any generation.

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Board of Governors of the Federal Reserve System (1); Allianz (2); Clever Real Estate (3); Federal Reserve Bank of St. Louis (4), (5); Realtor.com (6); OECD (7); FDIC (8); Social Security Administration (9), (12); EBSCO (10); U.S. Bureau of Labor Statistics (11); Gallup (13); ADP (14); Doxo (15); InternetRetailing (16); Fidelity (17); Policygenius (18); Northwestern Mutual (19); Vanguard (20)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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Source: “AOL Money”