8 'smart' money rules boomers preach that are actually terrible advice for younger generations

During my years as a financial analyst, the generational divide was impossible to miss. Senior managers would share their success stories over lunch—bought their first house at 25, locked in a mortgage for less than a third of their income. Meanwhile, my colleagues in their 30s were still living with roommates, running the numbers on how they'd ever afford a down payment.

The rules that built middle-class wealth in the '70s and '80s? Many of them are about as useful today as a floppy disk. Yet we keep hearing them, delivered with that special mix of certainty and subtle judgment that makes you feel like you're somehow failing at adulting.

I spent years watching this generational disconnect play out in conference rooms and over spreadsheets. And I've noticed certain "golden rules" that keep getting passed down—even though following them today might actually keep you broke.

Let's talk about why these supposedly smart money moves don't work anymore, and what younger generations should consider instead.

1. "Always buy instead of rent—renting is throwing money away"

This might be the most repeated—and most damaging—piece of outdated advice floating around.

When Boomers were starting out, home prices averaged about 4 times the median annual income. Today? It's over 6 times, with some cities hitting double digits.

The math has fundamentally changed. Between sky-high prices, property taxes, maintenance costs, and the loss of flexibility in an unstable job market, homeownership isn't always the wealth-building slam dunk it used to be.

The biggest expense is often the one you're not making—and that includes opportunity cost. The money you'd tie up in a down payment could potentially grow faster in index funds than in home equity, especially in overheated markets.

Sometimes renting while investing the difference is the smarter play. But try explaining that to your homeowning relatives at Thanksgiving.

2. "Get a stable job with one company and stay there for 30 years"

Remember pensions? Neither do most people under 40.

The average millennial will have a dozen or more jobs by their 30s. Company loyalty doesn't guarantee job security anymore—it often guarantees below-market wages. Recent data shows that job switchers see pay increases nearly double those who stay put—10% versus 5.1% according to ADP's 2024 figures.

Yet older relatives still frown when you mention switching companies "already." They don't realize that in today's economy, strategic job-hopping isn't flaky—it's often the only way to get meaningful raises and develop diverse skills.

3. "Never use credit cards—if you can't pay cash, you can't afford it"

This one kills me, especially coming from a generation that could build credit history just by having a pulse and a permanent address.

The reality now? Good luck renting an apartment, getting decent insurance rates, or even landing certain jobs without a credit score. And how do you build credit? Not with cash.

Used responsibly—paying off the full balance monthly, taking advantage of rewards, treating it like a debit card with benefits—credit cards are tools, not traps. The real problem isn't the plastic; it's financial literacy and impulse control.

Teaching complete credit avoidance in 2025 is like teaching abstinence-only education. Technically it works, but it leaves young people completely unprepared for the real world.

4. "A good degree guarantees a good job—student loans are always worth it"

When Boomers went to college, tuition at public universities cost about what you'd spend on a nice bicycle today. They could literally work a summer job and pay for the entire year.

Now? College tuition and fees have soared 1,200% since 1980, while wages have barely budged. That communications degree might cost you $120,000, but the starting salary hasn't scaled accordingly.

The blanket advice to "just get a degree, any degree" has created a generation drowning in debt for credentials that don't guarantee employment. Trade schools, coding bootcamps, and strategic community college transfers often provide better ROI than prestigious four-year programs.

But suggesting your kid skip traditional college? Prepare for pearl-clutching.

5. "Put all your extra money in a savings account"

Ah yes, the sacred savings account. Where your money can sit safely and grow at a whopping 0.01% interest while inflation eats it alive at 3-7% annually.

When Boomers started saving, you could get 18% interest on a CD. Savings accounts actually made your money grow. Today? That "safe" savings account is mathematically guaranteed to lose purchasing power every single year.

Young people need to understand investing—index funds, target-date funds, even basic brokerage accounts. But when they mention putting emergency funds in a high-yield account and extra money in the market, older relatives panic about "gambling" with money.

The real gamble is letting inflation silently rob you while your money sits "safe" in checking.

6. "Always max out your 401k—retirement comes first"

Don't get me wrong—retirement savings matter. But the "max out your 401k before anything else" advice assumes a few things that don't apply to many younger workers:

• That you'll have consistent employment with 401k access
• That you won't need that money for emergencies (hello, gig economy)
• That Social Security will exist in its current form
• That traditional retirement at 65 is your goal

For someone drowning in student loans at 24% interest, maxing out a 401k for a 7% average return makes zero mathematical sense. For freelancers without employer matches, IRAs might be better. For entrepreneurs, investing in their business could yield higher returns.

Context matters, but nuance doesn't fit on a coffee mug.

7. "Never discuss money—it's tacky"

This cultural rule has done more damage than any single piece of bad advice.

Salary secrecy only benefits employers. Financial shame keeps people from seeking help. The taboo around money conversations means each generation has to learn expensive lessons from scratch.

Young people who openly discuss salaries, investment strategies, and financial mistakes aren't being "inappropriate"—they're breaking cycles of financial illiteracy. Those Reddit forums and TikTok money talks? They're filling gaps that traditional financial education left wide open.

Transparency around money isn't tacky. It's necessary.

8. "Work hard and budget carefully—that's all you need to get ahead"

This might be the most well-meaning and most tone-deaf advice of all.

When you could support a family on one income, buy a house with a year's savings, and send kids to college without loans, then yes—hard work and careful budgeting were enough.

In today's economy? You can work 60 hours a week, budget perfectly, and still struggle to save for a down payment. Systemic issues like wage stagnation, healthcare costs, and housing shortages can't be budgeted away.

Young people aren't struggling because they're lazy or bad with money. They're navigating an entirely different economic landscape with tools designed for terrain that no longer exists.

Final thoughts

Here's what I wish more Boomers understood: pointing out that their advice doesn't work anymore isn't dismissing their experience or success. It's recognizing that what worked then doesn't work now.

The strategies that built middle-class wealth in the past weren't wrong—they were perfect for their time. But insisting on them today is like demanding everyone use a paper map when GPS exists.

If you're young and feeling frustrated by constant money advice that doesn't match your reality, you're not crazy. You're not failing. You're just playing by different rules on a different field.

The best financial advice adapts to current conditions. It acknowledges that what worked before might not work now. Most importantly, it makes room for new strategies—even if they challenge everything previous generations believed about money.

So the next time someone insists you're doing money wrong because you're not following the "proven" path, smile politely. Then do what actually makes sense for the economy you're living in, not the one that existed 40 years ago.

Your financial future depends on it.