Millennials are used to hearing the same stale chestnuts of financial advice. Set down the Starbucks. Forgo the avocado toast. The stereotypes feel reductive — and according to experts, they actually are.
That’s because, although Millennials seem to have borne the brunt of public hits on their financial reputation, Generation X is actually the cohort with the most debt. That’s right, Gen X should be known for more than its innovations in grunge music. It’s also the generation that carries the most debt.
When LendingTree broke down the median non-mortgage debt among generations, the company found Gen Xers leading the pack with roughly $33,859, and Gen Zers with the lowest debt, just $16,562, which makes sense given they have less time on the debt accumulation clock. Baby Boomers and Millennials are in the middle of the road with $18,779 and $30,558, respectively.
In learning why, and how, Gen X became the generation saddled with the most financial burden, you can learn how to avoid their fate – even if you still love Nirvana and they’ll have to pry your favorite flannel from your cold, dead hands.
Gen Xers Carry the Most Non-Mortgage Debt
Why are Gen Xers further down in the hole than other generations? They have the highest median credit card, auto loan, and student loan balances. That’s a lot. So, how does one avoid getting crushed under the weight of all that debt in the first place?
Keeping track of your expenses is a good starting point for anyone dealing with debt. Whether you use a budgeting app or prefer to kick it old-school with a notebook and pencil, you should be aware of every dollar going in and coming out. Then, once you know what you need to cover your monthly expenses, check out the gaps between your current income and expected payments.
Many credit card companies and loan providers are willing to work out payment plans that may allow you to pay a little less every month if you’re upfront with them. If you find yourself still short, you can look into a side hustle to help plug those gaps — and the good news is that a lot of these extra gigs can be done from the comfort of your couch.
Gen Xers Are Responsible for Their Children and Parents
Gen Xers are referred to as “the sandwich generation” — and it’s not because of their love for a good hoagie. A big reason so many Xers have fallen into debt is that they’re taking on the financial burdens of caring for their elderly parents in addition to their children. From increased medical costs for mom and dad to children’s tuition and other care, the costs add up quickly.
You can’t simply stop your parents from aging (if you could, you’d already be a billionaire) or keep your kids from needing everything from a roof over their heads to school lunch money. What you can do is hire a financial advisor who is a sworn fiduciary to help you navigate the financial thickets of tending to the very youngest to the very oldest members of your family.
A financial advisor can work with you to create a comprehensive plan tailored to your unique financial needs, balancing competing demands and prioritizing saving, budgeting, and spending to minimize debt accumulation. They can also guide you in structuring your family’s finances to protect against the unexpected — like a medical emergency or tuition hike — and identify opportunities for debt reduction or consolidation.
Gen Xers Received Mixed Financial Messaging
In an article examining the debt gap between Gen X and other age cohorts, Elements Financial shared that many Xers have received a lot of mixed messages about personal finance. Their parents and grandparents insisted on working hard and pulling themselves up by the bootstraps, while their Millennial and Gen Z colleagues and kids emphasize the crucial importance of work-life balance, bestie.
They’re also the first generation to experience the whiplash of going from carrying cash on hand to managing their finances in a digital landscape. With all this transition, it’s no wonder they haven’t exactly received the most solid education in financial literacy, which only contributes to their staying in debt.
To avoid this fate, dive into books, tune into podcasts, and explore resources like GOBankingRates to expand your financial knowledge. It’s never too late to educate yourself about managing money and connect with experts whose advice resonates with you.
Given the personal and financial burdens that Gen Xers are carrying on their flanneled shoulders, it’s understandable that many of them might feel overwhelmed by their monthly expenses and go into debt. Consulting with experts and empowering yourself by improving your financial literacy can help you avoid the fate of so many in the grunge generation. And while you’re at it, a side hustle never hurts, either.
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This article originally appeared on GOBankingRates.com: Can You Guess Which Generation Carries the Most Debt? The Surprising Truth, and How To Avoid It
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
