Whether we like it or not, our approach to money is heavily influenced by the time period we grew up in.
Every generation gets labelled with stereotypes, often by other generations – whether it’s about still using outdated technology like fax machines, enjoying ’80s movie marathons, prioritising self-care spending, or spending too much time on social media platforms like TikTok. In that same light, each generation has its own distinct financial habits, shaped by historical events, economic conditions, and societal expectations.
Defining Each Generation
Baby Boomers: Born 1946-1964
Generation X: Born 1965-1980
Millennials: Born 1981-1996
Generation Z: Born 1997-2012
Credit Usage Trends across Each Generation
Baby Boomers tend to have low credit utilisation ratios (which measures credit card balances against credit limits) compared to other generations because they have had many more years to accrue savings and build credit histories on average than younger generations. (Experian)
While Gen Zs have limited credit usage, often relying on debit cards. (Ernst & Young)
Spending Habits
If you’ve ever wondered what makes each generation spend their money, buckle up for the insights we gathered:
70% of brands report that loyalty was the highest in Gen X consumers. They have a high affinity for the brands they trust and are willing to pay a premium for their products. (eMarketer)
At an average of $5,700, millennials are more likely to value experiences and spending money on travel. (AFBank)
Financial Behaviour
While Boomers Prefer traditional banking methods and conservative investments (American Bankers Association), Gen Zs seek majority of their financial advice from online communities and social media.(World Economic Forum)
When we compare the financial behaviours across generations, it highlights the dynamic interplay between tradition and innovation in personal finance. As a financial startup working to democratise access to credit, Maxim continues to reshape the financial landscape. Understanding and addressing generational differences is essential in fostering financial inclusivity and empowering individuals of all ages to thrive in the digital economy.
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