By Jeremy Hewett, President and CEO, AccuQuote
A person’s financial situation influences their economic resilience, mental health, and quality of life. Yet, talking about money remains taboo in some circles. Luckily, younger generations are bringing the conversation into the open.
They’ve seen how financial security, or lack thereof, has impacted their parents and grandparents. The data backs it up: A 2025 Bankrate survey found that 43% of U.S. adults say money negatively affects their mental health at least occasionally, including 46% of Gen Z and 47% of millennials.
For the next generation of consumers, financial preparedness can be seen as a form of self-care. In our experience at AccuQuote, it’s a way to reduce financial stress, gain peace of mind, and feel more in control of the future.
Financial Preparedness Through Generations
Financial preparedness teaches individuals to build a solid financial foundation and healthy money habits to manage unexpected expenses, plan for the future, and navigate life’s uncertainties. It’s a complex and flexible concept that changes and grows as people develop better financial literacy.
The key components of financial preparedness are:
- Having an emergency fund to cover unexpected expenses
- Managing debt to avoid unnecessary financial strain
- Budgeting with intention to align spending with financial goals and priorities
- Securing adequate insurance (health, property, or life)
- Investing to grow wealth and build long-term financial security
While most people know and understand these components, the focus is different from generation to generation. The economic conditions and historical milestones of each time period have shaped how each generation views money, asset accumulation, and financial readiness.
Baby Boomers (1946-1964)
Boomers built their financial preparedness around stability and long corporate tenures. They used pensions and employer-sponsored retirement plans (such as traditional 401(k)s) as long-term planning tools.
Homeownership is also central to boomers’ financial security. Although they make up around 20% of the U.S. population, they account for more than 37% of homeowners nationwide. Due to more favorable economic conditions, many were able to buy homes at a younger age and build equity over time. Today, that property wealth remains a key pillar of their financial security.
Generation X (1965-1980)
Caught between raising children and supporting aging parents, Gen X has had to balance competing financial responsibilities while trying to build wealth of their own. According to a 2024 FINRA Foundation report, Gen X is the generation most likely to carry a mortgage and the most likely to carry credit card debt (39%), yet it manages that debt with less strain than younger generations.
For them, retirement is a major source of concern: the 2026 Insurance Barometer Study from LIMRA and Life Happens finds Gen X more concerned than any other generation about affording a comfortable retirement. Gen X also has some of the highest participation in employer-sponsored retirement plans, with 55% holding an account, according to the FINRA Foundation.
Millennials (1981-1996)
The generation that seems to experience a once-in-a-lifetime systemic crisis every few years is famous for challenging traditional financial wisdom. For millennials, the good old rule of “save regularly, plan for the future, and aim for long-term security” doesn’t always fit.
Saddled by heavy student loans and high housing costs, many millennials have had to rethink their timelines. In Deloitte’s 2026 global survey, 52% of millennials said they are delaying major life decisions, such as marriage, starting a family or furthering their education, because of their financial situation. Many have also turned to investing to build wealth: in a 2022 Investopedia survey, 64% of millennials said they invest regularly, with crypto the most popular choice and stocks next.
Millennials have also leaned on extra income to stay afloat. In a 2026 survey of Gen Z and millennial adults, 71% said additional income is now necessary just to keep up.
The Next Generation’s View on Financial Preparedness
Today’s young adults are part of Gen Z (1997-2012). They are the next generation to take over the workforce after millennials, and are already dealing with delayed life milestones, rising living costs, and ongoing uncertainty.
A 2026 survey from Beyond Finance and Operation HOPE shows that young Americans focus on immediate priorities rather than long-term goals. According to these findings, 77% of Gen Z and millennial adults rely on short-term tactics, such as Buy Now, Pay Later, to cover essentials, and 45% would use a tax refund to settle bills and debt.
Financial Security Comes First
In the eyes of the next generation, financial security trumps luxury. Even though the cost of living is higher and 42% of Gen Z live paycheck to paycheck, many young adults are still putting money aside, according to a Bank of America study.
The study found that 66% of Gen Z say they are saving, up from 60% in 2024, whether by moving leftover cash into savings (36%), contributing to a 401(k) (22%) or setting aside part of each paycheck (21%).
Financial Literacy and Future Planning
Unlike older generations who frequently viewed money as a taboo subject, Gen Z is more open about it, according to the Bank of America study: 60% talk about money with their friends, including salary (27%) and financial stress (24%).
Social media plays a big role in how people research money decisions. According to the 2026 Insurance Barometer Study, 62% of adults use social media when looking for information on financial or insurance products.
The next generation of consumers also understands the value of human experts. When it is time to buy, more than half of consumers (53%) prefer to talk it through with a financial professional, whether in person, by phone or by video, according to the same study. Finding the right life insurance policy is exactly the kind of complex decision where a licensed agent can help.
Speaking of life insurance, 45% of Gen Z and 43% of millennials recognize the need for life insurance or more coverage, compared with 39% of Gen X, according to the 2026 Insurance Barometer Study.
Achieving Traditional Milestones
Traditional goals like homeownership, marriage, and family are more difficult to achieve for the next generation. Financial pressures have led more than half of Gen Z worldwide (55%) to delay major life decisions, according to Deloitte. Yet, these milestones are still part of Gen Z life planning.
Some are finding other routes, such as buying a home with a friend or family member, sharing housing, or choosing practical starter homes and modest celebrations over taking on heavy debt for a milestone.
A Focus on Stability
Gen Z leans toward financial security and stability.
Gen Z is managing tight budgets with short-term tools while still saving and planning ahead. Young adults are also open to consulting experts, and many are delaying major milestones rather than taking on financial risks they don’t understand or can’t afford.
Jeremy Hewett, President and CEO, AccuQuote. Licensed Insurance Producer, State of Illinois, license no. 7875684 (NPN 7875684), life and health lines of authority. 18 years at AccuQuote, more than 2,500 families protected, over $1.2 billion in life insurance coverage placed.
