Generation X, also referred to as the “Lost Generation,” finds itself in a precarious financial situation, wedged between the money struggles of millennials and Gen Z on one side and the relative stability of baby boomers on the alternative. Consistent with a recent Bankrate survey, 47% of Gen Xers (ages 44-59) have more bank card debt than emergency savings.
This statistic paints a picture of Gen X falling behind all generations, with millennials (ages 28-43) faring only barely higher at 46% having more debt than savings, and Gen Z (ages 18-27) at 32%. On the alternative end of the spectrum, baby boomers (ages 60-78) look like in a more comfortable position, with 68% having higher emergency savings than bank card debt — the highest percentage amongst all generations surveyed.
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The survey data highlights the financial tightrope that Gen X is walking, sandwiched between the debt burdens of millennials and Gen Z, also referred to as the “broke” generations, and the comparatively well-prepared boomers. This Lost Generation moniker takes on recent significance as Gen Xers struggle to construct a financial safety net amid competing demands of supporting their children and aging parents.
Greg McBride, chief financial analyst at Bankrate, points out the strain many households are facing, stating, “Financing purchases at 20% rates of interest is a sign of the financial strain tens of hundreds of thousands of households are feeling.”
The survey also revealed that Gen Xers were probably the most definitely generation to report having less emergency savings than they did a yr ago, with 34% admitting to a decline of their financial cushion.
Pew Research Center’s examination of Generation X highlights their significant role as a bridge between the notably different baby boomers and millennials. Despite their critical economic and social position, Gen Xers have often been missed in discussions about demographic, social and political changes. Their financial outlook is notably more pessimistic as compared with other generations, partly resulting from economic stresses related to middle age.
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This bleak reality was echoed on Reddit, which posted an article about Gen X having the largest wealth gap. Inside the comments, one user wrote, “I feel like I did every part they told us to do and achieve success, and I’m sure I’m going to die penniless.”
One other lamented, “I even have been a casualty of multiple economic downturns, notably the 2008 recession … and, well, it’s not looking good for me.” A third user identified, “There’s no safety net under capitalism, but millennials is not going to be the enemy. They’re allies.”
Since the generational divide widens, Gen X finds itself at a crossroads, caught between the financial challenges of their children’s generations and the looming retirement prospects of their parents’ cohort. Navigating this middle ground would require a concerted effort to prioritize each debt reduction and consistent savings — a balancing act that many Gen Xers are still struggling to master.
it isn’t too late (or too early) to start out out working toward financial stability. Consulting with a financial adviser can play a pivotal role in helping people across all generations to judge their current financial situation, set realistic goals and create a plan to comprehend these goals.
Financial advisers can offer tailored advice on a diffusion of strategies to cut back debt, increase savings and plan for retirement, ensuring that individuals are taking proactive steps toward financial health. Whether it’s exploring options to consolidate debt to lower rates of interest, organising an emergency fund to avoid future debts or investing accurately for long-term growth, a financial adviser can provide guidance tailored to all and sundry’s unique circumstances.
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*This information is not going to be financial advice, and personalized guidance from a financial adviser is admittedly useful for making well-informed decisions.
Jeannine Mancini has written about personal finance and investment for the past 13 years in quite quite a lot of publications including Zacks, The Nest and eHow. She’s going to not be a licensed financial adviser, and the content herein is for information purposes only and is not going to be, and doesn’t constitute or intend to constitute, investment advice or any investment service. While Mancini believes the knowledge contained herein is reliable and derived from reliable sources, there isn’t a representation, warranty or undertaking, stated or implied, as to the accuracy or completeness of the knowledge.
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This text ‘I’m Sure I’m Going To Die Penniless’ — Almost Half Of Gen X, The ‘Lost Generation,’ Has More Credit Card Debt Than Savings — Even the ‘Broke’ Millennials’ Are Faring Higher originally appeared on Benzinga.com
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