Nick Bruining: In defence of baby boomers, and the one thing that sets them apart when it comes to money

It can be tough being a “boomer” these days.

The Intergenerational Report released at the end of September highlights the very real issue of inequity among the generations.

Boomers are often accused of benefiting and exploiting the system to the detriment of younger Australians. This includes maxing out their superannuation, inheriting properties and benefiting from the existing capital gains tax rules.

Sure, the boomers have done well on the back of rising house prices, but as someone who has been dealing with the very personal issue of “personal finance” over nearly 40 years, I’ve noticed some other key differences.

They’re not just abstract theories. I see plenty of the gen X and Y cohort who seem to do quite well, even today. This group, however, does have a different approach to finance than many others in the same age group.

And luck, or a helping hand from mum and dad, rarely plays a part in it.

Let’s talk about gen X and Y’s parents — the boomers.

Many boomers were raised by parents who directly experienced the financial impact of a post-World War II world in recovery. In some cases, the boomers’ grandparents experienced the Great Depression of the late 1920s.

These experiences instilled habits which are sometimes hard to break.

In a word, “thrift” — or being extremely careful with their money. Not how they invested, but rather how they spent what they had.

Much of the middle part of the last century was a time when thrift wasn’t an option, it was the key to survival.

Recycling wasn’t trendy, it was expected and money wasn’t sold to people; involved begging the bank manager to approve a loan.

It’s a simple two-step mathematical equation that’s now made more complicated with easy access to credit, whether through tap-and-go on your phone, or buy-now, pay-later schemes.

It goes like this: Spending less than what you earn equals financial peace-of-mind; dollars in, dollars out equals a number greater than zero, which equals financial peace-of-mind.

I regularly see well-heeled seniors who could easily afford a very comfortable retirement lifestyle, but don’t. Zipping about in older cars, travelling economy when they fly, only enjoying treats when they’re on special.

Those habits die hard, you see.

Your typical “rich” boomer displays many of these habits, developed through necessity or drummed into them.

Some have, in turn, drilled these habits into their own kids, the gen X, Y, Zs and some alphas. These are the ones who, mysteriously, seem to be getting ahead in spite of the current economic conditions.

Call it a type of fundamental “financial literacy”.

When it came time to raise the money for a home deposit, boomers sold as much of their stuff as was needed.

Holidays meant a trip to Bunbury or Kalbarri in a tent. Once kids arrived, a double-room tent or a cheap weekend rental was the answer.

Op shops and swap meets are where kids’ toys and, often, clothes, prams and other stuff were purchased.

A night out at the pub was a rarity and a bought coffee almost unheard of.

In a word, ‘thrift’ — or being extremely careful with their money. Not how they invested, but rather how they spent what they had.

Sure, the basics of life didn’t include mobile phone contracts, two cars and child care, but many households only had one income.

Mortgage interest rates between 1960 and 1990 averaged 9.16 per cent. As a percentage of disposable household income being spent on housing for many, it was up there with current levels.

According to the Australian Institute of Health and Welfare, in 2025 nearly 45 per cent of households were spending more than 30 per cent of their disposable income on housing — a widely recognised stress level.

But we hit a 35 per cent level in 1995 when many boomers were in their 30s and interest rates were at 10.5 per cent. Lofty interest rates existed in 2005, also, and plenty of households were in distress. There’s no reliable data before 1985.

The point is, tattoos, surfing trips to Bali, $50 cafe breakfasts, designer clothes for two-year-olds and monthly subscriptions to Netflix, Kayo and Stan would not have been tagged as “essentials”.

The deposit for a house and maintaining the repayments, was.

At the end of the day, policy, the economy and luck do play a part.

But it is mostly choices made along the way that determine one’s financial destiny.

Nick Bruining is an independent financial adviser and a member of the Certified Independent Financial Advisers Association