All generations have made headway when it comes to retirement savings, but Generation X is the weakest generation when it comes to finances, especially money management.
What makes a generation prepared for retirement is how it handles the basic foundational issues that cause the most financial stress, said Liz Davidson, founder and CEO of Financial Finesse in El Segundo, Calif. Those include how they handle cash flow—do they spend more than they earn each month?—paying off credit card balances in full each month and having an emergency fund.
People are paying for their children’s college educations and living in houses they can’t afford, but they don’t want to move and put their kids in a different school district, she said. “It’s a process of realizing you can’t always have everything you want right now, so how are you going to prioritize?”
Good students can get scholarships or financial aid to attend college, but “there is no scholarship for retirement,” she said.