Mar 27, 2026
Baby boomers have spent years lecturing younger generations about financial discipline. Yet new research suggests this so-called thrifty generation may have a few costly habits of its own.
A recent survey by Motley Fool found boomers are more likely than the average consumer to waste money in several everyday spending categories, including throwing away leftovers, leaving appliances running unnecessarily, sticking to brand-name pantry items and buying lottery tickets (1).
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Individually, these habits might seem harmless, but they can add up and gradually become more expensive as living costs rise. In the 12 months through January, food, utility gas service and electricity prices rose 2.9%, 9.8%, and 6.3%, respectively, according to the Bureau of Labor Statistics (2).
For a generation heading into, or already in, retirement, those extra costs can chip away at already stretched savings. And for what? Unlike the coffees, restaurant meals and other indulgences younger generations are often criticized for, many of these habits don’t even bring much enjoyment.
Not all boomers are loaded
People tend to think of baby boomers as lucky. Born between 1946 and 1964 and currently aged approximately between 62 to 80, many from this generation came of age when decent-paying jobs were plentiful, housing was relatively affordable and the economy was strong.
Against this backdrop, boomers accumulated more than $85 trillion in assets and are considered by far the wealthiest generation in U.S. history (3), (4). But not everyone from this period is flush with cash.
According to the Pew Research Center, the richest 10% of boomers hold roughly 71% of the generation’s wealth (5). In other words, a significant portion of this wealth is concentrated among a relatively small share of households.
A closer look suggests that many boomers face financial challenges. Vanguard estimates that only about 40% of them are adequately prepared for retirement (6).
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Meanwhile, Experian data shows that baby boomers tend to carry higher average credit card balances than some younger groups, particularly Gen Z, though not necessarily more than Gen X, and Bankrate reports that about one-third of boomers have used their emergency savings in the past year, while roughly 16% report having no emergency savings at all (7), (8).
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Where boomers tend to waste money
The Motley Fool survey identified several categories in which boomers are more likely than the average consumer to report wasteful spending:
- Food waste: Throwing away unused groceries or leftovers.
- Utilities and energy use: Leaving appliances running, failing to turn off lights and heating or cooling unused space.
- Brand loyalty: Choosing familiar name brands over cheaper store-brand alternatives.
- Lottery tickets: Regularly purchasing lottery tickets.
- Trigger spending: Overspending during shopping trips, vacations and special occasions, especially when there are sales or discounts.
These aren’t the only areas where boomers are reported to overspend, though findings vary by study. Other categories identified by research and surveys include:
- Healthcare plans: Signing up for Medicare or supplemental plans that don’t match their needs, leading to unnecessary premiums or out-of-network costs (9).
- Subscriptions: Paying for delivery services, premium subscriptions and other time-saving services that often go unused.
- Home improvements: In some cases, funding major renovations using retirement savings or debt.
- Scams: Older adults are disproportionately targeted by fraud, which can lead to significant financial losses.
- Supporting younger family members: Financial planners say boomers often help pay their adult children’s bills and spend heavily on gifts for grandchildren (10).
How boomers can stop wasting money
Fortunately, many of these habits are relatively easy to address. Financial experts often recommend starting with simple expense tracking. Writing down every purchase for a month can reveal surprising patterns and make it easier to identify ways to save money without significant sacrifice (11).
Patrick H., a retired boomer interviewed by GoBankingRates, said that stepping away from full-time work prompted him and his wife to take a closer look at their spending.
“We didn’t have much retirement savings, so it forced us to really think hard about what meant the most to us,” he said. “We considered what would provide us with the most satisfaction. If a particular expense no longer had much value, we eliminated it” (12).
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Patrick and his wife saved money by reducing their household to one vehicle, cancelling term life insurance after paying off their home and raising their children, and eliminating unused or forgotten subscriptions.
“Periodically, my wife and I will sit down and look at our budget to see what needs to be modified,” Patrick added.
Other practical tips include:
- Planning meals more carefully to reduce food waste.
- Switching off lights and appliances when leaving a room.
- Choosing store brands instead of name brands.
- Setting limits on discretionary spending, like lottery tickets.
- Evaluating large expenses carefully and avoiding unnecessary withdrawals from retirement accounts.
- Maximizing or avoiding debt in retirement.
- Comparing healthcare plans during open enrollment.
- Verifying unsolicited financial offers and avoiding sharing personal information with unknown callers.
People often associate cutting expenses with misery, but it doesn’t have to be that way. By avoiding waste and reviewing finances regularly, retirees can stretch their dollars further without sacrificing the quality of life they worked decades to build.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Motley Fool (1); U.S. Bureau of Labor Statistics (BLS) (2); Board of Governors of the Federal Reserve System (3); The Washington Post (4); Pre Research Center (5); Vanguard (6) ; Experian (7); Bankrate (8); Mutual Assurance (9); Go Banking Rates (10), (12); Morningstar (11)
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Daniel Liberto is a financial journalist with over 10 years of experience covering markets, investing, and the economy. He writes for global publications and specializes in making complex financial topics clear and accessible to all readers.
