18 Ways Baby Boomers’ Are Wasting Their Money
In an era where financial awareness, preparation, and literacy are vital, many baby boomers are spending their money on things that some might say are wasteful. From extravagant expenses to not being aware of relevant tax benefits, buying paper newspapers, and failing to invest accordingly, there are plenty of ways baby boomers are kissing their moo-lah goodbye.
Today we’re diving into 18 ways and, just in case you’re a baby boomer and want to learn how to save instead of spend, we’ll share tips for changing the behaviour and learn to save instead of spend. Whether you’re looking to tighten up your budget and don’t know how, looking after your parents’ financial habits, or anything else, this article will offer insight into ways boomers are wasting their money and what to do instead.
1. Unnecessary Subscriptions
Baby boomers are famous for having unnecessary subscriptions. From streaming services like Netflix, Hulu, and DIsney+ to magazine and newspaper subscriptions, premium shopping memberships, fitness and wellness programs, apps that are forgotten about, and trials that auto-renew without people even realizing. Having multiple subscriptions that aren’t being used or needed is one way that boomers are wasting their money.
To fix this, go through all your active subscriptions and evaluate whether or not it’s a worthwhile one to have.
2. Extended Warranties
When baby boomers are purchasing an item and the cashier asks if they’d be interested in purchasing the extended warranty for it, most boomers will.
History says 9 times out of 10 even if something happened to that purchase, the warrantys’ fine print probably doesn’t cover it. Skip the extended warranties and save a few dollars.
3. Excessive Insurance
While it’s good to be prepared, just in case, boomers have a habit of purchasing excessive insurance plans. From life, health, car, home, travel, etc., there are so many different insurances, and boomers like having them all. While insurance is good, make sure that you’re not overdoing it and spending far more than necessary.
4. Maintaining Unused Storage Units
We think all boomers have storage units, and it’s another expense that is just not necessary. Boomers are still in the thought process that more is better, so they tend to have more stuff than minimally loving millennials and Gen Z. It might be time to get rid of that storage unit, Mom.
5. Lottery Tickets
The chances of you ever winning the lottery are slim to none, but boomers don’t miss a week of purchasing the lottery ticket. We’re not saying to not purchase lottery tickets but to be aware of the cost each time you do.
6. Buying Books Instead of Borrowing
Boomers typically have bookshelves and bookshelves with rows and rows of books. They buy instead of borrow. Borrowing can save a tonne of money and space!
7. Buying Premium Gas
Gas is expensive enough; do you really need a premium? Does it make any difference in how much gas you go through? Boomers, we’re begging you, just fill up your car with normal gas and use that extra money for savings, investments, etc.
8. Ignoring Tax Benefits
There are many tax benefits available for all different situations, so it’s important to be aware of them. Boomers tend to just do their taxes and not keep up to speed with any changes that could in fact benefit them. If you’re not number-savvy, it might be time to ask for help so you can maximize your income potential.
9. Ignoring Home Energy Efficiency
Boomers tend to not be as concerned with living sustainably and taking care of the planet, and ignoring home energy efficiency is a major issue. First, it can improve the value of the home, and it’s better for the planet. Finally, it could even save you money on utilities.
10. Failing to invest wisely
Invest early and wisely. If you do not have a lot of knowledge surrounding finding good investments, then see an investor. Boomers lose money by not investing well.
11. Frequent Coffee Shop Visits
Instead of visiting a coffee shop every day for that perfect cup of joe, just make it at home. Even if you’re going out with a friend for coffee you could just have them at your home. It’s more personal and will save money.
12. Buying Newspapers
You can read anything online and it’s really not necessary to purchase anything. News is everywhere. Buying newspapers just doesn’t need to be a thing anymore.
13. Buying Expensive Gifts
Boomers are quite extravagant when it comes to gift-giving. And even though that’s lovely, it’s still unnecessary and could be considered wasteful. It could even be indicating that you’re missing the “big picture” of gift giving.
14. Not Comparing Prices
Knowing your prices for things you frequently purchase and what’s normal for each store can save you a great deal of money in the long run.
15. Buying New Gadgets for Grandkids
We’re sure the grandkids like this, but it’s not necessary. And boomers could even save that money for the grandkids’ college tuition, and it would be more impactful.
16. Cruises
Cruises are great, but do you really need to go on one three times a year?
17. Kitchen Gadgets
How many openers, vegetable peelers, and peering knives does one kitchen need? (The answer is 1.)
18. Ignoring DIY options
Boomers are more likely to hire someone to do something rather than doing it themselves.
Sometimes this makes sense (electrical work, plumbing, etc.), but sometimes there are things that people can just do themselves, and boomers ignore all do-it-yourself options. It’s good to get your hands dirty sometimes and just try. You might find a new hobby you enjoy!
A Few More Ways Boomers Waste Their Money:
- Paying for Expensive Personal Trainers
- Overpaying for Event Parking
- Buying Water Bottles
- Unnecessary and Frequent Online Shopping
- Buying Unused Fitness DVDs
- Paying for Professional Organising Services
- Buying Personal Development Courses
Final Thoughts
With inflation sky-high, the cost of living nearly unattractive, and corporate greed at its’ highest, keeping track of where your money is going couldn’t be more important.
Boomers are typically better off financially than the younger generations, but their money is going to things that sometimes aren’t necessary. Hopefully, this article has given you some ideas of where you (if you’re a boomer) can save money!
