Recently, I took a look at how both Gen Z and Millennials waste their money. This week, we’re going to look at Gen X with the help of ChatGPT.
Gen X is often referred to as the “forgotten generation”. Still too young to comfortably retire, but not young enough to set many trends, Gen X is currently sandwiched between caring for aging parents and supporting their almost/fully grown kids.
As a generation, they’ve been through a lot. In particular, Gen X has been unwillingly subjected to multiple recessions and a constantly rising and falling housing market. Because of this, Gen X are typically cautious when it comes to money. But that doesn’t mean they are immune to wasting it.
1. Cable AND Streaming
I thought this one was a bit silly upon reading, only to discover that Gen X spends a significant amount of money on both cable television and streaming services. While some have realized their financial mistake and cancelled one or the other, many Gen X are still spending money on redundant entertainment services.
Sometimes it seems like having more of these will give a person more options, when it really it just eats a whole in their wallet.
2. Brand Loyalty
I can’t even blame them for this one- if a brand treats me right, they’ve usually got me for life. But there is definitely a thin line between staying loyal and wasting money to avoid change. About 50% of Gen Xers stay loyal to their favorite brands.
My favorite example to use here is groceries.
Many name brand items you can buy use the same or very similar ingredients to generic and no-name brands.
You can even see this in more unconventional categories like makeup. Instead of going for the pricey face lotions at Sephora, you can find what is essentially the same product at Walmart for much less.
3. Neglected Subscriptions
Similar to millennials, Gen Xers love their subscriptions. But the difference is, Gen X seems to occasionally forget about their subscriptions. Although they have higher awareness of spending overall compared to other generations, they still have potential to forget a subscription or two.
Honestly, we’ve all been there.
4. Spending On Adult Children
Many Gen Xers are financially supporting their adult children. I don’t think anyone can blame them. As a parent, it’s a natural instinct to want to protect and support your kids.
But if it’s more of a long-term plan than a temporary solution to financial ailments, it may be time to reassess and speak with your kids. As you get older it becomes more and more detrimental to secure your financial future.
Forbes released an article detailing how Gen X is in retirement trouble — the average Gen X household only has about $150,000 in retirement savings. This is only a fraction of the suggested $1,500,000.
5. Unneeded Home Improvements
Another similarity to millennials, Gen X loves a nice looking house. As Gen X enters “peak homeowner years”, many are starting to deal with home maintenance and the costs that accompany it.
I think the solution to this is really defining which improvements are necessary and which are not. And for those that aren’t necessary — set up a sinking fund.
6. Outdated Tech
Gen X is supposedly less likely to adopt newer tech than their younger counterparts.
I thought that this one was kind of funny for ChatGPT to list off, but after reading into how much Gen X loves their brand loyalty, I was not surprised. While Gen X is fully of tech-savvy individuals, they were born during a transition between the analog and digital ages. So ultimately, I understand this one.
But sometimes, outdated tech can be more of a hassle than anything. Think cars, for example: the older the model, the harder it can be to find certain parts. And usually, those parts are more expensive.
Gen X is not known for spending in flashy or obvious ways. Their habits are much more subtle, rooted in the deep stability of doing what has always worked for them. But along the way, they occasionally develop spending habits that do more damage than good.
After spending decades being financially responsible for everyone else, maybe it’s time Gen X takes a step back and reevaluate what is really needed within their budget.
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