Financial Stress – The Cases of Gen X and Millennials

Generational differences have always been the main subject of debate, but such differences are further highlighted in terms of financial status. Canadians’ spending and saving habits, in particular, widely differ. Boomers are more likely to identify as the saving generation, whereas the Millennials are postulated to be the spenders. Generation X, on the other hand, reports being the most stressed of three—in debt, spenders, and savers all at the same time. 

Millennials and Generation X are more likely to spend their income on experiences and material items, such as dinners, vacations, clothes, and electronics. Repayment of debt is also in the picture, but more so in the landscape of Generation X. 

Young professionals have also invested in retirement and emergency savings, but what makes their lives extremely stressful? Experts cite the younger generations are wary of the growing rates of career insecurity and student loans, whereas many others fear the impending recession as the aftermath of the pandemic. 

Things may be difficult for the new generation of Canadians, but things may not be as difficult as their fears and emotions dictate.

Financial Desperation: The Pleas of Generation X 

Generation X is particularly keen on earning income, as their levels of money stress have reached the boiling point of desperation. Many believe that they are experiencing the financial repercussions of a bad economy, especially in light of a pandemic. 

They believe that the playing field of career paths have been narrowed down, with reduced financial earnings. This makes them susceptible to debt, if not already dealing with difficult to pay debts. 

Despite such difficulties, many members of Generation X continue to find ways to invest in their futures, all the while enjoying the seemingly limited financial benefits their income can provide.

A Sense of Balance: The Financial Status of Millennials

The desperation of Generation X is apparent, but Millennials seem to be coping well. Most members believe that they’re experiencing life as they should, under the notion that they are somewhat financially stable. They understand that they earn more money than the rest, although the difficulties lie in their outstanding debts.

The generation’s financial woes are apparent, which comes in the form of stagnant wages, student loan debts, and of course, the inability to finance homeownership. 

What Should Be Done 

Although most of the younger generation have their futures in mind, others remain nonchalant about their future plans. This leaves little to no savings in their pockets, coupled with outstanding debt to take care of. Retirement accounts are scarce, if not non-existent. The great financial crisis may be upon the world, but the fear of the circumstances is what currently drives the younger generation. 

The key is to constantly educate especially when it comes to debt repayment. The joy of life may come in the little experiences, but responsibility should be taken. There are student loans to pay and career paths to pursue—instant gratification is warranted, but planning for the future is paramount. In the case of Millennials and Generation X,  financial fluency must be pursued—only then can the financial fear completely dissipate. 

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