Let’s be real, each generation has its own unique way of spending money, and it’s honestly quite intriguing to dive into the nitty-gritty details of those differences. Thankfully, we’ve got experts who lay it all out for us without any sugarcoating.
“Generational spending differences often reflect deeper societal shifts, particularly in technology adoption and lifestyle choices,” said Dennis Shirshikov, finance professor and head of growth at Go Summer. “Gen X (those born between 1965 and 80), for instance, still prefers traditional media subscriptions, such as cable television and print newspapers.”
“They grew up in an era where these were primary sources of information and entertainment, leading to a certain loyalty or comfort with these mediums,” Shirshikov said. “In contrast, millennials (those born between 1981 and 1996) and Gen Z (those born between 1997 and 2012) are more inclined to digital solutions like streaming services and online news platforms, which offer on-demand content at often lower costs and with more personalization.”
Gen X tends to have distinct spending habits and preferences compared to the younger millennial and Gen Z demographics.
While there are certain areas of overlap, here are some services and products that Gen X consumers are more likely to invest in:
Traditional Cable TV
“Gen Xers grew up with cable TV packages as the primary source of their entertainment,” explained Kevin Huffman, personal financial expert and owner of Kriminil Trading. “They are used to paying a bundled monthly rate for a wide variety of channels.”
I’m a Gen-Xer born in the 70s and had traditional cable until late 2023. Since then, I’ve used streaming and, quite honestly, it’s been a big adjustment.
Huge.
There are so many channels and so many viewing platforms. And everything is so well categorized by genre. No wonder cable companies are increasing their rates; they’re losing customers.
The upside is I can watch so many more movies and have the flexibility to watch them whenever I choose. But the downside is that I find myself watching far less news and educational programming. There’s also a bit of program overload. There’s just so much to watch, I’ll often scan 15 minutes before finally deciding on something.
There’s a lot more to navigate.
Unlike me, millennials and Gen Z have long embraced the streaming era.
“They like the freedom to subscribe to the streaming platforms of their choice and pay only for the content they want to watch,” Huffman said.
Erik Croak, certified financial planner and president of Croak Capital, agrees with this tendency.
“Even with all the digital stuff we have now, folks in Generation X still stick to their TVs and radios,” Croak said. “But Gen Z and millennials prefer streaming on Netflix, YouTube, and Disney+ using their smart TVs, not the old-school way. Gen Z especially hardly watches traditional TV — they’re more on hanging out online and watching shows.
“Gen Xers, on the other hand, really like their cable TV and network shows because it reminds them of the old times,” Croak added. “They watch a mix of news, sitcoms, and dramas to keep entertained and informed. And radios? Gen X still enjoys listening to talk shows and classic tunes, especially during drives or while at work.”
Old habits die hard – and sometimes don’t die at all.
Landline Phones
“While landline phones are becoming a thing of the past, a lot of Gen Xers still have them for various reasons,” Huffman said. “Maybe they use them for business calls or just feel secure to have a normal phone line.”
“Millennials and Gen Z who are used to mobile communication, see the landline phones as an extra cost.”
I had a landline phone until 2011 but my mom, who is part of the Silent Generation (born between 1928 and 1945), still uses her landline as her primary phone because they have louder rings and larger touchpads, and are harder to lose versus the tiny smartphones. Moreover, she still has full use of a phone when her mobile battery dies or the local tower malfunctions.
The proliferation of cellular devices among the American populace has reached remarkable heights. Pew Research Center’s findings indicate that an overwhelming 97% of Americans now possess some form of cellular device. Furthermore, a staggering 90% own a smartphone, a substantial increase from a mere 35% in 2011 when the Center first conducted a survey on smartphone ownership.
I’m not a phone expert but it seems the old landline phones would be more secure in the event of an emergency. But, what if that emergency never happens?
Is owning a landline phone as a backup to a cell the best way to go?
Full-Coverage Auto Insurance
For many Gen Xers, carrying full-coverage car insurance, which includes both collision and comprehensive coverage, is the standard approach. The comprehensive nature of this insurance plan provides broader protection, covering not only collisions but also other potential damages or losses, such as theft, vandalism, or natural disasters. Given the financial investment and importance of their automobiles, Gen Xers tend to prioritize this level of robust coverage to safeguard their assets and ensure they are adequately protected in the event of an unexpected incident.
“Millennials and Gen Z who might own less expensive vehicles or are leasing cars might opt for more affordable liability-only coverage, especially if they tend to use rideshare services more often.”
I’ve never considered anything but full-coverage auto insurance and have no plans to abandon it.
Face-to-Face Banking
So yeah, until 2022, I was content to walk inside a bank to deposit a check even after tellers kept asking me, “Haven’t you heard of online banking?”
And because my yard service company won’t accept credit/debit, I still walk into my bank and ask them to create a bank check even though I could more easily pay those bills online. I guess it’s a force of habit.
“Gen Xers are happy to go into a bank to make a transaction or receive financial advice from a live person,” Huffman said.
Millennials and Gen Z, however, have embraced online and mobile banking and are perfectly fine with managing their money electronically, he added.
I recently heard of a money service called Zelle. Have you heard of it? Initially, I thought it was another one of those fly-by-night money transfer companies until I noticed that service was an option on Bank of America’s online platform. If Bank of America is promoting it, it’s legit and probably somewhat mainstream. How did I miss that?
Printed Newspapers and Magazines
“Gen X was the generation that was using newspapers and magazines as the main source of information and entertainment,” Huffman explained. “Many of them are still using these or buy the printed copies to get their daily routine or read any kind of articles which they love to read.”
Of course, millennials and Gen Z use digital news sources and online publications that are more convenient and mostly free.
“Underlying many of these trends is the fact that Gen X grew up in a period of economic unease and on-premise finance,” he explained, “while millennials and Gen Z came of age amid accelerated digitalization and on-demand business models — and expect their finances to be as flexible, cheap and easy as the rest of their lives.”
Croak agrees, adding, “A lot of Gen Xers have had magazine subscriptions for years and always look forward to flipping through the new pages.”
He said this preference ties back to a sense of nostalgia and tradition.
I don’t get The Washington Post anymore but still purchase magazines on occasion. But mom still loves to read magazines and looks forward to her newspaper and coffee every morning. The process is like clockwork.
I realize it’s morbid, but she reads the obituaries every morning and is often the first to tell me when a distant acquaintance has passed.
“Some even have lifetime subscriptions!” Croak said. “Maybe it sounds old-fashioned, but there’s something about the feel of paper in their hands that they love. Millennials and Gen Z? They mostly stick to online articles and get their news from social media or directly on websites. They rarely pick up a physical magazine or newspaper.”
Professional Cleaning Services
As busy professionals with possibly dual-income households, Gen Xers might be more willing to pay for professional cleaning services to save time and maintain their homes. Younger generations, however, seem to prioritize DIY approaches or use shared economy platforms for similar needs.
As the Gen X owner of a townhouse, I used a professional cleaning service twice in 2021. They were a bit pricey but I was satisfied with the results. And just last year, I started using a professional lawn service and am glad I made the transition.
In most cases, it’s all about luxury. We are paying money for time and convenience. Gen-Xers can clean the house and yard themselves but many of us would rather pay someone else to do it so our time can be freed up doing other things.
Aside from those aforementioned instances in 2021, I still manage and perform all of my house cleaning. Maybe that’ll change soon…
Can you relate to any of the above phenomena? Please leave a message below.
