Saving & Spending Budgeting & Expenses

11 Reasons Baby Boomers Aren't Spending Their Massive Wealth

Is it fear, frugality, or something else stopping Baby Boomers from spending?

senior woman calculating budget at home
Updated April 30, 2025
Fact checked

Boomers — they make up almost one-fifth of the American population. Born after the difficulties of a devastating war, they've lived through both economic booms and recessions.

They've thrived in stable economies and generated enough wealth to navigate failing ones. Perhaps most importantly, they've amassed massive wealth throughout the years.

If boomers have so much saved, what makes them so good at avoiding wasting money and holding on to their wealth? Keep reading to find out.

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They're living longer

luciano/Adobe Senior woman with thumbs

The boomer generation's life expectancy is increasing. As they continue to live longer, they're less inclined to make large purchases because they want financial security over the long term, making sure they have enough money for retirement.

Some boomers may worry about their future expenses, which encourages them to spend lightly in the present day.

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They're worried about their futures

Mediteraneo/Adobe Male nurse assisting senior patient outdoor

They may fear running out of money — these days, with inflation, things like end-of-life expenses and nursing homes are extraordinarily expensive.

With a longer lifespan comes a risk of illness, so living on a tighter budget helps prevent boomers from getting caught with no funds in case of a medical emergency.

They're investing instead

InsideCreativeHouse/Adobe senior man using laptop

Rather than spending their money, some boomers have turned to investing and, as a result, have been doing better financially. They invest in the stock market as it continues to grow.

With the availability of new technology, boomers have access to financial resources that can help them learn how to grow their stock portfolio and increase their wealth in other ways.

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Competing demands for money

Jacob Lund/Adobe senior couple in park during winter

The world we live in now is much different from the one in which the baby boomers came of age. Buying items has never been more accessible, with online marketplaces and whatever you need delivered right to your door. Some boomers may feel overwhelmed with options.

When there are too many things to purchase, some boomers decide on nothing and instead stick to what they're comfortable with.

Their budget is a habit

WavebreakMediaMicro/Adobe senior couple checking their bills

Some boomers might not want to spend their money because they choose to live frugally, and they've been doing it so long that it's now a habit. Some boomers may have other expenses, like mortgages or house repairs.

Because some boomers are already accustomed to a strict budget, they might not want to spend the wealth they have accumulated. 

A different relationship with money

Юлия Завалишина/Adobe managing bank finances calculating taxes

Similar to their commitment to routine, boomers may have a different relationship with money than their successors. Born in the boom after World War II, boomers spent their younger years in a strong economy and benefitted from job stability.

They're traditionalists and believe that their hard-earned money should not be squandered and spent on immediate wants.

Spreading generational wealth

AILA/peopleimages.com/Adobe senior couple meeting their banker

Generational wealth continues to be a highly debated topic as older generations are spreading generational wealth earlier and earlier.

Spreading generational wealth while still living may positively affect younger family members, but it may also prevent boomers from making large purchases or spending liberally.

Having worked all of their lives for their money, it is no surprise that boomers want to be able to provide for their families.

Supporting adult children

Drazen/Adobe senior man fishing with son

With the state of the economy and high cost of living, some boomers may still be housing their adult children and grandchildren.

Though most boomers enjoy having their children around, and family provides specific support, this may also prevent them from making large purchases. The budget may be a little tighter because there are more mouths to feed in the home.

Their children support them

Rawpixel.com/Adobe Senior friends fishing by lake

Alternatively, some boomers may be financially supported and cared for by their children.

Boomers won't have to worry about spending money on rent, groceries, or other costly living expenses when living with their children. They won't be inclined to spend money on expenses such as appliances or entertainment with their needs met.

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Leftover pandemic routines

Halfpoint/Adobe courier delivering to senior woman

The COVID-19 pandemic altered the way many boomers operated, and some still have not adjusted to post-pandemic conditions.

During lockdown, many boomers strayed away from big-ticket purchases that involved close contact with others, like cruises. Some of those habits from 2020 remain.

They have fewer subscriptions

Celt Studio/Adobe man streaming tv programs using remote

While younger generations overspend on streaming platforms and monthly music subscriptions, boomers have a more old-school approach.

Many boomers are still watching cable television, eliminating the need to pay multiple subscription fees to watch the show they want.

While younger generations spend over $10 a month on Spotify or Apple Music, boomers may opt for more traditional ways of listening to music, like CDs or record players. By sticking to cost-effective entertainment options, boomers spend less each month.

Bottom line

MNStudio/Adobe Senior couple playing puzzles at home

Even though boomers have a reputation for being critical of other generations and unaware of the difficulties of spending and making money for younger generations, boomers aren't as frivolous and spendy as some may think.

Many boomers choose not to spend their massive wealth to provide themselves with peace of mind and a stress-free retirement. Will the younger generations one day accumulate riches, too?

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