When it comes to financial regrets, there are some that are shared across generations. A 2022 ConsumerAffairs survey found that the number one financial regret boomers, Gen Xers and millennials all share is not becoming financially literate when they were younger. Considering how important personal finance education is in terms of building a financially secure future, this isn’t too surprising. That doesn’t make these regrets sting any less, though.
Besides neglecting financial education, there are many other shared money regrets across generations. Here are the top 10 biggest ones, according to ConsumerAffairs survey data.
Percentages are based on how many respondents chose the answer as the worst money-related decision they’ve ever made.
Waiting on Financial Education: 23%
Tied first with spending money on unnecessary material items is neglecting personal financial education. Nearly a quarter of baby boomers, Gen Xers and millennials all agreed this was their biggest money regret.
Financial education is a key part of being able to manage your money and make sound financial decisions. Having a solid foundation can help you achieve short- and long-term goals, such as investing in retirement, creating an emergency fund, buying a home and paying off expensive debt.
Making Unnecessary Material Purchases: 23%
Many older individuals regret buying a lot of material items they didn’t really need, especially when it meant missing out on valuable or memorable life experiences.
“Having worked with boomers, Gen Xers and millennials, the biggest money regret I consistently hear across all generations is spending money on material things instead of life experiences,” said Andy Krafft, CPA, CFP and wealth advisor at Luminary Wealth.
“Almost everyone regrets a purchase at some point in their life, whether it be an expensive car, house or even overpriced clothing, but I rarely hear people voice regrets about experiences they’ve shared with family and friends,” added Krafft. “The material things eventually pass away and are forgotten, but the shared experiences last forever, making it a worthwhile investment.”
This goes for luxury purchases, too, especially those that don’t generate income.
Karl Jacob, the CEO at LoanSnap, added, “One of my favorite sayings, ‘If you can’t afford two of something, don’t buy it’ applies here most people regret big purchases — whether vacations and/or luxury items that don’t generate cash flow.”
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