Why Millennials' Money Problems Aren't Just the Boomers' Fault: A Financial Reality Check

The narrative is tempting: blame baby boomers for everything from skyrocketing housing costs to crushing student debt. But according to financial analysts, the reality is far more complex. Younger generations face unprecedented economic pressures, yet some of their financial struggles stem from personal choices rather than generational inheritance.

The College Degree Trap: More Accessibility Means More Debt

Over the past two decades, college enrollment has surged dramatically. Between 1960-1964, only 44% of high school graduates pursued higher education; by 1980-1984, this figure had climbed to 73%—a staggering 30-point increase in just 20 years. This expansion created a perfect storm: more students going to college meant exponentially more borrowing.

What made this shift possible? Student loans became omnipresent. Younger generations inherited a culture where college funding through debt felt normal, even necessary. Parents—many of them boomers who were the first in their families to attend college—actively encouraged their children to follow suit, regardless of long-term financial consequences.

The Parent Plus loan program exemplifies this trend. Between 2014 and 2024, these loans for dependent undergraduates skyrocketed by over 75%, from roughly $62 billion to nearly $110 billion. According to 2024 Pew Research data, only 22% of Americans believe a degree justifies taking on student loans—yet enrollment persists. The infrastructure for easy borrowing remains, and families continue utilizing it.

The Wellness Spending Surge: A Generational Attitude Shift

Baby boomers historically deprioritized personal wellness, often avoiding medical care and mental health support altogether. Younger adults have swung in the opposite direction, treating self-care as essential rather than optional.

This shift has created a $500+ billion annual wellness industry in the United States, with millennials and Gen Z as the primary drivers. Whether this represents a healthy correction or unsustainable spending depends on your perspective—but the financial impact is undeniable. This spending pattern didn’t emerge from boomer influence; it reflects an entirely different set of values around health and wellbeing.

The Debt Normalization Pattern: Following Parents’ Financial Footprints

Borrowing for consumer goods was once considered unethical and financially reckless. Post-Great Depression, attitudes shifted, and credit became socially acceptable. Baby boomers were among the first generations to embrace credit cards and car loans as normal financial tools.

Modern data shows the parallels: baby boomers carry an average credit card balance of $6,795, while millennials average $6,961. The younger generation isn’t struggling with debt because they were forced into it—they’re replicating their parents’ approach to borrowing. The mechanism was inherited; the choice to use it heavily remains personal.

Housing: The Market Nobody Built, Everybody Lost

Perhaps the clearest divide between generations lies in real estate. Baby boomers entered a housing market where single-income families could realistically purchase homes. They benefited from decades of appreciation without directly engineering the current crisis. Yet they’re reaping those gains: boomers now represent 42% of all homebuyers in 2025, compared to just 29% for millennials.

The obstacle for younger buyers is structural. Nearly half of millennials (47%) report that wages haven’t kept pace with housing costs, according to recent research. They’re not choosing not to buy—the math simply doesn’t work. This represents a genuine market failure, not a generational moral failing.

The Contentment Factor: Economic Stability vs. Information Overload

Financial experts observe that boomers tended toward contentment, staying in jobs for decades and resisting lifestyle inflation. Millennials face a fundamentally different psychological and economic landscape. At 30, many boomers had job security and affordable housing. Millennials hit that milestone amid student loan payments, volatile employment, and skyrocketing costs.

The result? Millennials are driving the home renovation trend, with 60% planning projects in 2025. They’re also increasing travel spending significantly. This spending pattern isn’t reckless indulgence—it reflects people trying to build quality of life within an increasingly expensive world. Their choices have contributed to rising debt levels and increased reliance on debt consolidation services, but these outcomes stem from rational decisions within constrained circumstances rather than inherited bad habits.

The Bottom Line: Complexity Over Blame

The boomer generation created certain economic conditions that persist today. They normalized debt, expanded college attendance, and benefited from housing appreciation. But millennials’ current financial struggles result from a mix of inherited patterns, structural economic changes, and personal spending choices that reflect different values and constraints.

Assigning blame to any single generation oversimplifies the problem. Instead, recognizing that both systemic forces and individual decisions shape financial outcomes offers a clearer path forward—one focused on practical solutions rather than generational finger-pointing.