Media Consumption: Baby Boomers are the biggest consumers of traditional media like television, radio, magazines, and newspaper. Despite being so traditional, 91% of baby boomers have a Facebook account. This generation has begun to adopt more technology in order to stay in touch with family members and reconnect with old friends.
Banking Habits: Boomers prefer to go into a branch to perform transactions. This generational cohort still prefers to use cash, especially for purchases under $5.
Shaping Events: Post-WWII optimism, the cold war, and the hippie movement.
What’s next on their financial horizon: This generation is experiencing the highest growth in student loan debt. While this might seem counterintuitive, it can be explained by the fact that this generation has the most wealth and is looking to help their children with their student debt. They have a belief that you should take care of your children enough to set them on the right course and don’t plan on leaving any inheritance. With more Americans outliving their retirement fund, declining pensions, and social security in jeopardy, ensuring you can successfully fund retirement is a major concern for Boomers.
Generation X
GEN X
Gen X Birth Years: 1965 to 1979/80
Current Age: 45 to 60
Generation Size: 65 million
Other Nicknames: ”Latchkey” generation, MTV generation
Media Consumption: Gen X still reads newspapers, magazines, listens to the radio, and watches TV (about 165 hours’ worth of TV a month). However, they are also digitally savvy and spend roughly 7 hours a week on Facebook (the highest of any generational cohort).
Banking Habits: Since they are digitally savvy, Gen X will do some research and financial management online, but still prefer to do transactions in person. They believe banking is a person-to-person business and demonstrate brand loyalty.
Shaping Events: End of the cold war, the rise of personal computing, and feeling lost between the two huge generations.
What’s next on Gen X’s financial horizon: Gen X is trying to raise a family, pay off student debt, and take care of aging parents. These demands put a high strain on their resources. The average Gen Xer carries $142,000 in debt, though most of this is in their mortgage. They are looking to reduce their debt while building a stable saving plan for the future.
Millennials (Gen Y)
MILLENNIALS
Millennial Birth Years: 1980 to 1994/6
Current Age: 29 to 44
Generation Size: 74 million
Other Nicknames: Gen Y, Gen Me, Gen We, Echo Boomers
Media Consumption: Most Millennials still watch TV but Netflix edges out traditional cable as the preferred provider. Cord-cutting in favor of streaming services is the popular choice. This generation is extremely comfortable with mobile devices, but 36% would choose to use a laptop to make larger online purchases of $150 or more. They typically have multiple social media accounts.
Banking Habits: Millennials have less brand loyalty than previous generations. They prefer to shop products and features first, and have little patience for inefficient or poor service. Because of this, Millennials place their trust in brands with superior product history such as Apple and Google. They seek digital tools to help manage their debt and see their banks as transactional as opposed to relational.
Shaping Events: The Great Recession, the technological explosion of the internet and social media, and 9/11
What’s next on their financial horizon: Millennials are powering the workforce, but with huge amounts of student debt. This is delaying major purchases like weddings and homes. Because of this financial instability, Millennials choose access over ownership, which can be seen through their preference for on-demand services. They want partners that will help guide them to their big purchases.
Gen Z
GEN Z
Gen Z Birth Years: 1997 to 2012
Currently Aged: 13 to 28
Generation Size: 69 million
Other Nicknames: iGeneration, Post-millennials, Homeland Generation
Media Consumption: The average Gen Zer received their first mobile phone between 10 and 13 years old. Many of them grew up playing with their parents’ mobile phones or tablets. They have grown up in a hyper-connected world and the smartphone is their preferred method of communication, spending around 4 hours a day on their mobile device.
Banking Habits: This generation has seen the struggle of Millennials and has adopted a more fiscally conservative approach. They want to avoid debt and appreciate accounts or services that aid in that endeavor. Debit cards top their priority list, followed by mobile banking.
Shaping Events: Smartphones, social media, never knowing a country not at war, and seeing the financial struggles of their parents (Gen X).
What’s next on Gen Z’s financial horizon: Learning about personal finance. They have a strong appetite for financial education and are opening savings accounts at younger ages than prior generations.
