I was born in 1980. Though I’m right at the end of the generation, I proudly claim my Gen X status. Of course, all of the broad strokes about a generation are stereotypes that can’t possibly apply to everyone. Nevertheless, I resonate more with the generalities of being a Gen Xer than any other generation. So, naturally, I’ve been thinking about what money means when you’re part of Gen X.
What Is Gen X?
People born between 1965 and 1980 are generally labeled Generation X. We’re also known as the Latchkey generation and the MTV generation. The funny thing about that, for me, is that I only kinda sorta relate to either of those terms. My mom worked nights and my dad worked from home, so there was usually someone around at the house during the day. However, we were still generally left to our own devices. As for MTV, we were a no-cable household my entire childhood, but the culture around it still permeated.
Gen X and the Digital Age
We’re an interesting generation because we grew up without household computers. However, we were still pretty young when they entered our homes. We got dial-up Internet in my house when I was in high school. I remember being young enough to marvel at the idea of phones where you could see who was on the other end of the line. And yet becoming a daily cell phone user wasn’t a big switch for me, as it might have been for some Baby Boomers.
I use my phone all of the time for most things. That said, I don’t like answering the phone at all, rarely Facetime, and strongly prefer to text all day. I don’t like Facebook, but I’ve been on it forever, and I love Instagram. I don’t bother with Snapchat or Tik Tok. That’s not to say that this is true for everyone in my generation, of course. However, that’s what is true for me.
How Gen X Does Their Banking
According to Kasasa, Gen X’s relationship with technology influences our banking. They argue that tech-savvy Gen Xers like to do their research and some online banking. However, for the most part, they prefer to do transaction in person. Maybe that’s true for many of them, but it definitely isn’t true for me. I started making mobile deposits on my phone the second that my phone was capable of doing so. Although I use traditional banks, I also have a high yield account with an online-only bank. I’ve delved into cryptocurrency investing. And the only reason I’ve gone into a bank in years was to get quarters for my laundry.
Gen X Understands Money
Investopedia, reporting on a study of Generation X and money, says that four out of five of us feel confident in our understanding of money. We have a basic working knowledge of personal finance including taxes and insurance. I would say that’s true for me. I wish that they had taught these skills to me in school. However, Gen X is a scrappy generation that learns as we go, and I picked up most of that knowledge on my own. The Internet came along and made it much easier to learn.
The article notes that feeling not-savvy about cryptocurrency is among Gen X’s financial concerns. I can see that. I do feel like it’s left me behind a little bit in some ways. However, I have also been exploring and using it for a little while now. Moreover, I feel confident that it’s still something that I can learn. Remember that I’m the youngest of all Gen X years, so perhaps that plays a role.
Gen X and Financial Strain
Kasasa also argues that Generation X is under a lot of financial strain due to the following things:
- Raising a family
- Paying off student debt
- Caring for aging parents
- Carrying $142,000 in debt on average, primarily from a mortgage
My situation is the same and different. I don’t have children, so I’m not raising a family. I rent my home, so I’m not paying a mortgage. However, I do pay an exorbitant amount in rent because I’ve chosen to live in San Francisco. My personal debt exceeds the average stated above, and it includes student debt as well as business loans. For a long time, it also included medical debt and credit card debt, although I’ve recently paid those off. I don’t support my parents, but I do help with some of their bills.
Gen X and COVID
Insider reports that COVID really hit Gen X hard. As an older generation, those that were put out of work may have found it harder to get jobs again. This was and wasn’t true for me. I definitely initially got hit hard by COVID as many of my clients had to pull back because their own finances changed. However, since I’ve worked from home for decades, I adapted easily to that societal shift. I was able to access some grants to pull me through the tough times. And I’ve bounced back fairly well. So, as far as that goes, I’m lucky, I think.
Generation X and Retirement
For as long as I can remember, we talked about Baby Boomers retiring. My mom retired early from the post office, although she then took a post-retirement job. These days, the oldest of Generation X are now retirement age. The conversation has switched to my generation.
Investopedia’s report found that savings and retirement are of major concern to Gen Xers. They cite that while 55% of Gen X expect to be able to retire, 25% aren’t sure at all if they’ll be able to. They cite their primary sources of retirement income as their 401(k) investments and Social Security. That said, all of us Gen Xers have some cynicism to us and don’t necessarily believe that Social Security will really be there through the end of our days.
As for where I personally fit into this … well, my track has been a little bit different. I started working for myself in my early twenties. I’ve often invested a lot of money, including going into debt, into a life that offers me creative freedom and freedom of schedule. I don’t have a 401(K) although I finally started an IRA a few years ago. To be honest, I don’t have much of a retirement plan. As a writer, I plan to keep working as long as I can. I’m working on developing more passive income, including expanding my writing royalties. And I’d like to get more into investing. At 42, retirement feels like a long way off, but it’s also certainly time to think about it a little more than I did in the past.
What generation are you from? In what ways do you relate to it?
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Kathryn Vercillo is a professional writer who loves to live a balanced life. She appreciates a good work-life balance. She enjoys balance in her relationships and has worked hard to learn how to balance her finances to allow for a balanced life overall. Although she’s only blonde some of the time, she’s always striving for total balance. She’s excited to share what she’s learned with you and to discover more together along the way.