Get Rich, Millennial-Style

Different generations have different spending habits. Boomers typically create their own path, especially when it comes to finances. Millennials tend to be more conservative with their money, keeping it in the bank or in small investments.

Boomers who spend significantly more on food, transportation and clothing can learn from the more thrifty Millennials, says Anika R. Khan, an economist at Wells Fargo Securities, LLC. “This may show that [Millennials] have far more conservative spending habits.”

She adds that Boomers were in their prime earning years before the recession hit. As a result, Millennials “have surely mastered Newton’s law of inertia: what goes up must come down.”

What can Boomers learn about managing money from Gen Y? Finance experts suggest focusing on growing savings as opposed to investments and, if you have 

bad spending habits, try setting up an automatic transfer with your bank. 

Millennials tend to spend only what they have. Many avoid building up debt by making a budget and only using available cash, as they know credit card interest build-up can affect their credit score.

All generations can benefit from learning about low risk investments like government bonds, CDs and money market accounts as a way to grow that nest egg without depending on the volatile market.

Bonus PINK Link: Millennials now make up one-third of the workforce. Here’s why you want to hire them.

By Muriel Vega

“People first, then money, then things.”  Suze Orman