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How Boomers and Millennials Differ on Money

Families are entering one of the largest wealth-transfer periods in history.

Cerulli Associates projects that $124 trillion will transfer through 2048, with $105 trillion expected to pass to heirs and $18 trillion expected to go to charity. Baby boomers and older generations are expected to account for most of that transfer.

That shift is not only about money. It is also about values, expectations, communication, and the way different generations define a successful financial life.

At True North Wealth Management, we help families talk through those differences so wealth can support both security and purpose.

Boomers and Millennials Often Had Different Starting Points

Baby boomers and millennials came of age in very different economic environments.

Many boomers built wealth through homeownership, long careers, pensions, retirement plans, and decades of market growth. Many millennials entered adulthood during or after the Great Recession, faced higher education costs, delayed homeownership, and built careers in a more flexible but less predictable economy.

Neither generation is “right” or “wrong.” Their money habits often reflect the financial world they experienced.

Boomers Still Hold a Large Share of Wealth

Federal Reserve data continues to show a significant generational wealth gap.

Baby boomers hold the largest share of U.S. household wealth, while millennials and younger adults hold a much smaller percentage. That imbalance affects housing, retirement, family support, inheritance expectations, and financial confidence.

For boomer parents, wealth may represent stability, sacrifice, and protection.

For millennial adult children, money may feel tied to freedom, flexibility, debt relief, experiences, and catching up after years of higher costs.

Understanding those emotional meanings can help families avoid judgment and communicate more clearly.

Millennials May Prioritize Experiences Differently

Millennials are often associated with the “experience economy”—travel, concerts, restaurants, wellness, entertainment, and once-in-a-lifetime events.

That does not always mean reckless spending. For many younger adults, experiences represent connection, identity, and quality of life.

They may ask:
“Why wait until retirement to enjoy life?”

Boomers may ask:
“How do we make sure the money lasts?”

Both questions matter.

A strong financial plan should protect long-term security while still allowing room for meaningful enjoyment along the way.

Boomers May Be Rethinking Retirement Too

The desire for experiences is not limited to millennials.

Many boomers have reached a stage where they want to travel, spend time with grandchildren, support causes they care about, start a second-act business, or enjoy hobbies they postponed during working years.

After decades of saving, some retirees struggle to give themselves permission to spend.

A retirement plan can help answer important questions:

The goal is not to hoard wealth or spend impulsively. The goal is to use wealth intentionally.

The Wealth Transfer Needs Better Communication

Many families avoid discussing money until a crisis occurs.

That silence can create confusion, resentment, or poor decisions when aging parents need care, an inheritance arrives, or adult children become responsible for settling an estate.

Healthy family financial conversations may include:

Parents do not need to disclose every dollar to have meaningful conversations. Even general guidance can help the next generation prepare.

Younger Generations Need Balance

Some millennials may lean too far into “you only live once” spending without saving enough for future needs.

That can create long-term pressure if they delay retirement contributions, ignore emergency savings, accumulate high-interest debt, or assume an inheritance will solve future problems.

A better approach balances today and tomorrow.

Younger adults can start by:

A financial plan should not eliminate joy. It should make joy more sustainable.

Older Generations Need Flexibility

Boomers may also benefit from reviewing assumptions.

Retirement planning is not only about preserving principal. It is also about using resources to support the life, family, and legacy that matter most.

That may include:

A plan can help retirees understand which goals are affordable and which choices may create unnecessary risk.

Build a Bridge Between Generations

Generational differences can create tension, but they can also create opportunities.

Boomers may offer perspective on discipline, saving, patience, and long-term planning. Millennials may bring insight into flexibility, meaningful experiences, technology, and values-based decision-making.

Families can benefit from both.

At True North Wealth Management, we help clients coordinate retirement income, investments, estate planning, tax strategy, gifting, insurance, and family financial conversations.

A thoughtful plan can help one generation enjoy what they built while preparing the next generation to manage wealth wisely.

The best financial conversations do not begin with criticism. They begin with curiosity, shared values, and a plan for the future.

Important Disclosures:
This material is for informational purposes only and is not intended as tax, legal, accounting, estate-planning, insurance, or individualized investment advice. Generational trends are broad observations and may not apply to every individual or family. Wealth-transfer planning, gifting, retirement spending, investment management, and estate strategies involve personal circumstances and changing laws. Consult qualified tax, legal, insurance, estate-planning, and financial professionals regarding your situation.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.