4 Things You Can Learn From Previous Generations’ Money Mistakes
Let’s make it clear right off the bat: Your generation is the best generation, OK?
And no matter which generation you happen to belong to, there’s plenty you can learn from the financial mistakes of previous generations, who all behaved in financially unwise ways.
If you’re Gen Z, you can avoid the house-hunting regrets of millennials. If you’re a millennial, you can learn from the credit card disasters of Gen X. If you’re Gen X, there’s still time to avoid repeating the retirement mistakes of the baby boomers. And if you’re a boomer, hey, you already know everything, right?
Kidding, y’all! We’re just kidding! (Full disclosure: The writer of this piece is Gen X, so he doesn’t really matter.)
What can we learn from previous generations’ financial mistakes?
1. Gen Z? Avoid Millennials’ Regrets
If you’re Gen Z, you can avoid the house-hunting regrets of millennials.
A survey of homebuyers in 2017 found that 57% of millennial homeowners surveyed would have done something differently if they got a do-over on the homebuying process. More than a quarter — 28% — wished they’d saved more before making the purchase.
2. Millennial? Avoid Gen X’s Credit Card Hell
Every month, you make payments toward your credit card debt. But you never seem to make a dent. It’s because of those sky-high interest rates — as much as 24% interest. It can feel impossible to get ahead.
But MoneyLion could help you find offers to cut your interest rate by 70% as soon as tomorrow.
Here’s how it works: MoneyLion can match you with new loan offers at a lower interest rate — as low as 5.20% APR*. That’s 70%* lower than the average credit card interest rate. And it’s the key to finally getting ahead.
You can use this new loan to pay off all your existing credit card debt, then you’ll be left with one (cheaper) monthly payment that will help you get out of debt faster.
If you have a credit score of at least 620, you could get up to $100,000. With no collateral. And terms go up to 144 months.
Worried you won’t qualify? Take two minutes to check online and see if you could cut your credit card interest rate by 70%.
*Based on creditworthiness. Average credit card interest rate is 24.72% as of 8/14/23, according to Forbes Advisor’s weekly credit card rates report.
3. Gen Z or Millennial? Don’t Wait Too Long to Start Investing
If you’re young, here’s another thing to learn from your elders’ misguided ways. Many of them wish they’d gotten started investing back when they were your age.
For example: These days, Amazon stock is valued at around $3,700 a share. Twenty years ago, it was $14. A relatively modest investment back then would have easily made that investor a millionaire by today.
You really don’t need much to get started. Whether you’ve got $5, $100 or $800 to spare, you can start investing with Robinhood.
Yeah, you’ve probably heard of Robinhood. Both investing beginners and pros love it because it doesn’t charge commission fees, and you can buy and sell stocks for free — no limits. Plus, it’s super easy to use.
What’s best? When you download the app and fund your account (it takes no more than a few minutes), Robinhood drops a share of free stock into your account. It’s random, though, so that stock could be worth anywhere from $5 to $200 — a nice boost to help you build your investments.
4. No Matter Your Age, Think About the Next Generation
No matter what your generation — no matter what your age — this past year has made a lot of us think about our mortality.
There was a surge of interest in life insurance during the pandemic, as more Americans realized they probably need it.
Also, more people are seeking out no-exam life insurance because they don’t want to go to a doctor’s office for an in-person exam. Companies like Bestow use algorithms instead of medical exams to evaluate applicants.
Rates start at just $10 a month.* You could leave your family up to $1.5 million. The peace of mind knowing your family is taken care of is priceless.
If you’re under the age of 54 and want to get a fast life insurance quote without leaving your home, get a free quote from Bestow.
Whether you’re Gen Z, a millennial, Gen X or a baby boomer, there’s plenty you can learn from previous generations about what to do — and what not to do.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. He is a member of Generation X so, like, whatever man.
*Bestow: Policies are issued by Bestow Life Insurance Company, Dallas, TX on policy form series BLI-ITPOL. Bestow Life Insurance products may not be available in all states. Policy limitations or restrictions may apply. Not available in New York. Our application asks lifestyle and health questions to determine eligibility in order to avoid requiring a medical exam. Prices start at $10/month based on an 18-year-old male rated Preferred Plus NT for a $100k policy for a 10-year term. Rates will vary based on underwriting review.
