Millennials and Gen Z: Blaming Boomers for Economic Anxiety

The financial landscape of America is in a state of flux, and the economic anxiety felt by millennials and Generation Z is palpable. Larry Fink, the CEO of BlackRock, recently highlighted the growing concern among younger generations about their financial future. According to Fink, the current economic narrative spun by governments and companies essentially boils down to a pat on the back and a "good luck out there." This sentiment resonates deeply with millennials and Gen Z, who feel that the decisions made by baby boomers have significantly impacted their financial well-being.



The Great Wealth Transfer, where baby boomers are expected to leave over $80 trillion to their heirs, is a significant factor in this anxiety. While this transfer could benefit millennials and Gen Z in the long run, the immediate financial strain on younger generations is substantial. Many millennials and Gen Zers are responsible for their money habits but are dependent on their boomer parents for financial support, which adds to their financial anxiety. According to a survey by OnePoll on behalf of National Debt Relief, 65% of Gen Z and millennials are concerned about baby boomers’ influence on their financial future.

The financial habits and investment strategies of baby boomers differ significantly from those of millennials and Gen Z. Baby boomers tend to prioritize traditional investment vehicles such as stocks, bonds, and real estate. They view financial security as a combination of stable income streams, such as Social Security, pensions, and investments, underpinned by a solid safety net of savings. In contrast, millennials and Gen Z are more interested in alternative assets such as cryptocurrencies, private equity, non-fungible tokens, art, and collectibles. According to a 2024 Bank of America study, alternative investments and crypto comprise 31% of younger investors’ portfolios, compared to only 6% for older investors.

Moreover, millennials and Gen Z are more likely to turn to social media platforms like YouTube, Instagram, and TikTok for investment advice. This digital fluency enables them to respond swiftly to market changes, leveraging investment apps and robo-advisors that provide quick and easy access to a wide range of asset classes. Millennials, in particular, are known to use multiple platforms for their investing activities, with a significant portion holding accounts with both traditional brokers like Fidelity and newer entities like Robinhood and Cash App. This allows them to balance traditional investments with more avant-garde opportunities, such as fractional shares, digital assets secured by blockchain (e.g. tokenized real estate or art), and peer-to-peer (P2P) loans.



The differences in investment strategies have significant implications for the broader economic trends and market dynamics. The Great Wealth Transfer will likely lead to a shift in the types of investments that draw attention. Younger generations tend to favor socially responsible and tech-oriented investments. This could lead to a significant transformation in the investment landscape, with more funds flowing into sustainable and tech-driven sectors. Additionally, the influx of wealth into the real estate market could rejuvenate stagnant markets or further escalate prices in already booming areas. The expected uptick in entrepreneurship, driven by fresh capital, could significantly diversify the job market and drive innovation.

In summary, the financial habits and investment strategies of baby boomers, millennials, and Gen Z differ significantly, with baby boomers prioritizing traditional investments and millennials and Gen Z favoring alternative assets and digital platforms. These differences influence broader economic trends and market dynamics, shaping the future of investment, entrepreneurship, and consumer behavior. As the Great Wealth Transfer unfolds, it will be crucial for policymakers and financial advisors to address the concerns of younger generations and help them navigate the complex financial landscape.