How each generation handles their finances
You don’t bank the same way your grandparents do. Or even your parents. And it’s probably not because you’re rebelling. The simple fact is, as the economy, technology, and banking continue to change through the years, so do banking habits. Knowing more about the different thought processes and actions of each generation can help you define the strategies, products and services that will turn them into loyal customers.
From in-branch and digital choices to credit card actions and loan behaviors, get to know how each age group interacts differently with their finances and their financial institutions — as well as how you can expand your relationship with them.
BOOMER
GEN X
millennials
GEN Z
GEN A
Birth Years: 1946 to 1964
Current Age: 57 to 75
Birth Years: 1965 to 1979/80
Current Age: 41 to 56
Birth Years: 1981 to 1996
Current Age: 25 to 40
Birth Years: 1997 to 2012
Current Age: 9 to 24
Birth Years: 2012 to 2025
Current Age: 0 to 9
Very active on Facebook
Very conservative with his money
Has saved $80k for retirement
Likes using his credit union’s mobile app
Greg
67
Name:
Age:
Widowed, teaches high school, saving for retirement
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Has two kids in college
Started selling produce at farmer’s market on weekends during COVID
Studies investing, trying to rebuild her 401K for retirement
Looking for a bank that helps her do more with her money
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Annette
53
Single mom, working full-time, volunteers at a local non-profit twice a week
Expected to outnumber Boomers in 2028
say technology helps them make money through a side-hustle
Have the highest average household income at $113,455
Majority plan to work after retirement to remain socially engaged and stimulated
Lost nearly 40% of their wealth in the crash of 2008
Plan to spend the same amount as they did pre-COVID
Have the most debt and average 6X more debt than their parents
Name:
Age:
Cater to their more conservative side with good deals/discounts like free reward checking.
Analyze account data to help them find ways to reduce debt while building a stable saving plan for the future.
How to expand your relationship with this generation:
Life facts
Banking facts
U.S Population
65.2 million
make no purchases in a typical week using cash
say they’re shouldering more financial responsibilities than their parents did
34%
50%
Uses Snapchat and TikTok — YouTube for fashion and makeup tips
Attending community college to avoid student debt
Does graphic design on Fiverr to make
extra money
Is shopping for a good deal on car insurance
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Natalia
19
Living with parents, planning to become a graphic designer, wants to move to the city after school
more likely than other generations to give up personal information in exchange for personalized recommendations
More than 70% would rather go without their wallet than their phone
Have the second highest POS swipes per account
Most open up a checking account in the summer months*
Name:
Age:
Be authentic — present a strong purpose, values, and mission statement and be true to it in everything you do.
They’re wary of debt, so you want to educate them on how to borrow smart and avoid unmanageable debt loads.
How to expand your relationship with this generation:
Life facts
Banking facts
U.S Population
68 million
are banking with conventional banks rather than neobanks
still use cash on a weekly basis
90%
80%
Divorced parents, lives part-time at each parent’s home
Earns money through chores and allowance
Got his own iPad when he was six
Limited to two hours of online time per day
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Alex
8
Third-grader who plays soccer and enjoys multi-player online video games
Highly educated, technologically advanced, materially endowed, short attention span
Completely immersed in technology, their entire world depends on it
Have social media handles before birth (created by their Millennial parents)
The most digitally proficient in history
Millennial parents are intensely focused on raising them with opportunities
Projected to be both the most inclusive and divisive generation ever
Have been through consistent change (pandemic, etc.) making them unafraid of it and adaptable
Name:
Age:
Lay a solid foundation by providing their Millennial parents with resources and tools to help teach their children about financial responsibility.
Give them about 8-10 years to grow up, then offer them a flying car loan.
How to expand your relationship with this generation:
Life facts
U.S Population
48 million
79%
55%
said they'd be willing to switch to an account offered by a tech company such as Amazon
401k
is their retirement savings vehicle of choice
Uses smartphone and social media to research before shopping or eating out
Regularly attends major league sporting events
Put COVID stimulus checks into savings
Ready and eager to start spending again after pandemic
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Francis
39
Working professional with no children, lives on the edge of major urban center with dog and cat
Entering their prime credit building years
Have lower debt-to-income ratios
Saved the most of any generation leading up to 2020
Along with Gen Z, have the highest household income growth expectations
Opened the largest share of savings accounts – 40% more than Boomers
35 years old and under have more student loans than auto loans
Entered pandemic highly leveraged but with manageable debt burden
Saw the most percent change in savings balances post stimulus payments
Have the most monthly POS swipes
on average
Name:
Age:
Offer a seamless digital experience, including fully online account opening, P2P payment capability, banking apps, and mobile wallets.
Offer products and services that reward them for spending, since they currently spend the most and are projected to lead the economy into the Roaring 20s. Increase feelings of financial empowerment with options that include saving for unexpected expenses and increasing income.
How to expand your relationship with this generation:
Life facts
Banking facts
U.S Population
72.1 million
said they'd be willing to switch to an account offered by a tech company such as Amazon
use online banking at least once per week
have used loan services and 81% have paid ahead on their loan
Make up 51% of mortgage purchases (the largest share of home buyers since 2014)
68%
72%
62%
Hector & Maria
73, 71
Retired, active grandparents, concerned about rising healthcare costs
Likely to work past the age of 65 out of necessity, not desire to remain in the workforce
16% of people 50 and older live in a shared household
Name(s):
Age(s):
Analyze your account data and look for where they’re paying debt outside of your institution.
Recommend ways for them to save on their debt and optimize retirement planning.
How to expand your relationship with this generation:
Profile #2
Life facts
3X
34%
51%
said they would save up for big purchases rather than use credit
have used loan services
48%
83%
have paid ahead on their loan
have refinanced a loan
59%
19%
25%
Back to their pre-COVID spending habits
Order food on Grubhub with their iPad
Recently bought a new car and applied for loan online
Looking for ways to save on prescription medicine
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Hector & Maria
73, 71
Name(s):
Age(s):
Ken
41
Name:
Age:
Profile #2
Is studying online to finish his business degree
Remodeled his master bath during COVID
Shopping for a new car, but unsure if his ag-bank offers the best financing deal
Likes managing his money from his phone, but visits the branch frequently
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Third-generation farmer, lives on the family farm with his wife and three kids
Ken
41
Name:
Age:
Whitney
28
Name:
Age:
Profile #2
Uses Amazon Prime to auto-ship things like diapers and wipes
Is concerned about identity fraud, especially with online shopping
Curbed spending during COVID, but is now back to normal habits
Hopes to own a home after student debt is paid
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Stay-at-home mom with two kids and an elderly grandmother she cares for
Whitney
28
Name:
Age:
Isaiah
23
Name:
Age:
Profile #2
Doesn't have a Facebook account — uses LinkedIn and Instagram
Loves to travel and go to concerts
Switched banks because his old one didn't work with Apple Pay
Uses his phone or debit card to pay for things
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Recently graduated with a degree in biomedical engineering, working a paid internship
Isaiah
23
Name:
Age:
Allison
9
Name:
Age:
Profile #2
On TikTok and Instagram
Has a Greenlight debit card
Has her own smartphone
Spends most of her viewing time on Netflix and Disney+
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In fourth grade, plays the clarinet for school band
Allison
9
Name:
Age:
Unhttps://www.genzinsights.com/when-it-comes-to-money-we-should-all-act-more-like-gen-z
https://www.businesswire.com/news/home/20210504005472/en/Marqeta-Survey-9-Out-of-10-of-Gen-Z-Use-Traditional-Banking-Options-but-Many-Have-Their-Eye-on-Big-Tech
https://www.livingfacts.org/
https://www.beckershospitalreview.com/consumerism/gen-x-most-likely-to-use-mobile-apps-to-manage-medical-conditions-survey-finds.html
https://www.americanbanker.com/opinion/older-generations-use-digital-banking-too
https://www.bankrate.com/pdfs/pr/20190605-side-hustles-survey.pdf
https://www.aarp.org/money/credit-loans-debt/info-2015/gen-x-interesting-finance-facts.html
https://www.businessinsider.com/typical-gen-x-debt-net-worth-income-earnings-caregiving-stress-2021-8?op=1#but-the-average-gen-x-household-earns-more-than-any-other-generational-household-does-113455-thats-because-theyre-in-their-prime-working-and-earning-years-6
*Kasasa Analytics
Sources
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Second highest mortgage holders
More likely to carry credit card debt today than ever before
More than 1/3 said they wouldn't open an account at a branchless institution
More than half use mobile check deposit
Hold the most deposit dollars, but saw the least balance change during COVID
CDs still remain a popular choice
Household net worth may never recover
from Great Recession
Banking facts
say technology improves the lending process
received Social Security
or pension income in 2018
79%
83%
U.S Population
71.6 million
still buy books in
brick-and-mortar stores
more likely to turn to social media for product recommendations than their parents
