Credit to their generations: baby boomers
Post-war experimental attitude includes plastic
By Geoff Williams | Published: March 19, 2008
What they buy: Convenience
The baby boomers' way of thinking: Young folks catch flak for having lousy money management skills. Unfortunately, they learned it from their parents, the baby boomers, who range from 44 to 61 years old. Fortunately, the baby boomers are starting to figure things out, but will it be too late?
According to a 2005 survey by the Center for Retirement Research at Boston College, 45 percent of households are "at risk" for falling short in being financially prepared when the primary moneymakers get ready to retire. Seeing as the survey was made up of baby boomers and Generation X'ers, the country is probably in for a financial roller-coaster, fueled at least in part by easy credit.
"They tend to use credit cards in supermarkets and stores because it's easier," says financial planner Patrick Astre. "But they aren't spending wildly out of control anymore. Boomers are approaching retirement and they know that they're not retiring if they have to pay off huge debts. Unfortunately, they seem to have realized this only within the last decade or so."
The news isn't all bad for baby boomers, according to Astre: "I see a little more caution in that group. They also tend to use home equity loans or other favored and tax deductible credit for major purchases instead of credit cards."
Next: Generation X (1965-1979).
- 5 money management tips for Generation X – Even in your 40s, there's still time to master your finances ...
- 6 things to know before requesting a credit-line increase – Before you request a credit increase, think about how it will affect your credit score and why you need the added amount ...
- A second credit card: When it's wise to get one, when it's not – Adding more plastic to your wallet can be an asset, but it's not for everyone ...