10 Boomer Money Habits That Are No Longer Popular
Baby boomers grew up with financial habits that mirrored the values of their time. Back then, discipline, frugality, and a hefty preference for tangible security were paramount. Having grown up hearing harrowing tales of the Great Depression from their parents and grandparents, it’s no surprise that boomers were clinging to cash savings like their lives depended on it.
But times change. Today, many of these once-essential practices have become outdated or prohibitively restrictive. From stuffing cash in envelopes to avoiding debt like the plague, here are 10 classic boomer money habits they used to live and swear by.
1. Stuffing Cash in Envelopes or Drawers
Boomers were known to stash money at home for emergencies or recurring expenses like gas and groceries. Stemming from a general distrust of banks in the decades following the Stock Market Crash of 1929, having a cash stockpile ensured they always had access to money that wouldn’t vanish. Though inflation eroded the value of idle cash, and theft or loss was a real risk, this habit gave them peace of mind in an uncertain and volatile financial climate.
2. Using Layaway Plans
Before credit cards were the norm, layaway allowed boomers to reserve an item by paying a deposit to “lay it away” until they could pay for it in full later on. Though the plans prevented overspending, they also tied up money for weeks or even months. Unlike our modern “buy now, pay later” offers, layaway had no interest; just patience. Not a good time for shopaholics.
3. Balancing Checkbooks
Meticulously tracking every transaction kept boomers hyperaware of every penny they were spending. But while closely monitoring their checkbooks prevented overdrafts and financial surprises, it was also time-consuming and tedious. In comparison, today’s digital banking services make tracking spending, cashing checks, and making payments seamless and easy.
4. Buying Only What They Could Afford
Boomers were known for living within their means and avoiding debt above all else. This frugal mindset extended into everyday expenses and essentials, too; if they couldn’t pay cash for things like groceries, appliances, or even cars, they would go without them. While this ironclad discipline kept them out of financial trouble, it also limited their opportunities like investing in real estate or stocks. I just know I’d be kicking myself if I didn’t buy a house that was being sold for $50,000 or less.
5. Sticking With One Job for Life
Compared to today’s “job-hopping” culture, boomers minimized risk by sticking with the same employer through thick and thin. While being loyal to one company for their entire careers came with perks like pensions and pay bumps, it also limited their opportunities and income growth. In comparison, today’s workers (especially young professionals) routinely switch roles after two or three years with an employer in search of higher pay, stronger benefits, or to advance their careers.
6. Always Paying in Full
Boomers wielded credit cards like debit cards — meaning if the money wasn’t already in their checking account, that purchase didn’t happen. This “no balance left behind” mentality spared them from today’s 19% interest rates (and the outrage that came with them), but it also came at a cost: They’re essentially leaving free money on the table by ignoring modern perks like airline miles and cash-back rewards.
7. Investing Conservatively
Safe, low-yield investments were the top choice for boomers. While these safer investments (think savings bonds, CDs, and passbook accounts) protected their money from the volatility of the stock market, they also lagged behind inflation. So, while they avoided market crashes this way, they also missed out on more lucrative investment opportunities.
8. Homeownership Was Attainable
Compared to today’s economy where a cup of coffee will run you close to 10 bucks, boomers entered the housing market when a single factory paycheck could be a down payment on a home in the suburbs. These “starter homes” helped build generational wealth through a perfect storm: 30-year fixed mortgages (often under 5%), wages that kept pace with inflation, and property values that tripled during their prime earning years. Fast forward to today, and that same home now costs over a million dollars.
9. Repairing Instead of Replacing
Boomers didn’t just repair things — they kept them running for decades through sheer determination (and maybe a little elbow grease and tons of duct tape). While today’s culture thrives on “buy, break, replace,” this fix-it-first mentality was both thrifty and even sustainable. That lawnmower from 1985 that’s still running today? A badge of honor. Just ask my parents.
10. Paying Cash for Cars
If boomers couldn’t save up the full amount in their “car envelope” for a new vehicle, they just stuck to driving their old clunker around for another year or two. While this strategy kept them debt-free, it also meant missing out on low-interest opportunities (like sub-3% loans in the 2010s) that could have freed up cash for other investments.