The debate over whether baby boomers bear responsibility for today’s economic pressures on millennials and Gen Z is complex. Personal finance expert Rachel Cruze argues that while generational shifts play a role, the problems run deeper than simple blame. The reality is, financial struggles are a result of long-term economic trends and choices made by multiple generations.
Student Debt: A Systemic Shift
Data from the Bureau of Labor Statistics demonstrates a significant increase in college attendance between 1960–1964 (44% of high school grads with degrees) and 1980–1984 (73%). This surge in enrollment directly correlates with the rise in student loan debt. While boomers may have encouraged higher education, the availability of loans made it easier to defer financial consequences. A 2024 Pew Research Center survey found that 22% of Americans still believe college is worth the debt, and Parent Plus loans have surged by 75% in the last decade—from $62 billion in 2014 to nearly $110 billion in 2024. This shows both individual decisions and systemic encouragement of borrowing play a role.
The Wellness Gap: Spending Habits and Generational Values
Younger Americans prioritize self-care—physical and mental health—to a degree unseen in previous generations. McKinsey & Company estimates the U.S. wellness market at over $500 billion annually, driven largely by millennials. Boomers historically avoided these expenses, which may have led to an overcorrection among younger generations, though Cruze is careful not to assign blame. This is a cultural shift with economic implications: while boomers may have been frugal out of necessity, millennials and Gen Z are willing to spend on well-being.
Debt as the New Normal
Debt was once viewed as irresponsible, but the post-Depression era normalized borrowing. Boomers were among the first to embrace credit cards and car loans. Today, Experian data shows millennials carry an average credit card balance of $6,961, nearly matching boomers at $6,795. This suggests a continuation of debt-based lifestyles rather than a direct imposition from one generation to the next.
Housing: A Changing Landscape
The housing market was more accessible for boomers, allowing them to secure “forever homes” relatively easily. Millennials face an increasingly competitive and expensive market. The National Association of Realtors (NAR) reports that boomers still account for 42% of homebuyers, while millennials make up only 29%. Nearly half of millennials (47%) report that their income has not kept pace with housing costs, according to Leaf Home. Boomers benefited from a different economic reality, but they did not create the current conditions alone.
Contentment vs. Keeping Up: Lifestyle Choices
Cruze describes boomers as a “content generation,” often staying in stable jobs and avoiding excessive spending. Millennials, however, are more prone to unsustainable lifestyles and competitive spending. While boomers had the luxury of affordable housing and job security, millennials entered adulthood amid rising costs and economic uncertainty. Deloitte found that millennials were among the biggest groups planning increased travel spending at the end of 2024, and USA Today reports a surge in debt consolidation among the generation. These choices contribute to financial strain, independent of any specific generational legacy.
In conclusion, while generational shifts and the economic conditions experienced by boomers undoubtedly influenced today’s financial landscape, blaming one group ignores the complexity of systemic factors and individual choices. The rising cost of living, coupled with changing cultural values and the normalization of debt, all contribute to the challenges faced by younger generations.
