What Boomers and Gen X Are Actually Spending Money On
There’s a popular narrative that older Americans are either hoarding their wealth or living modestly in retirement. The numbers tell a different story. Baby Boomers and Gen X are spending—and in very different ways.
According to U.S. Bureau of Labor Statistics data, Generation X spends more than any other generation in America, averaging $83,357 per year. Baby Boomers spend less overall, at roughly $62,000 per year, but they control significantly more wealth. By the end of 2024, Boomers held more than $80 trillion in wealth, while Gen X held about $41.67 trillion.
The real insight comes from where the money actually goes.
Housing Still Eats the Biggest Share
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Housing takes up more than 30% of annual spending for every generation. That hasn’t changed.
For Gen X, mortgages, property taxes, insurance, and maintenance costs dominate the monthly budget. Many are still paying off homes while supporting kids or creating space for remote work. Housing costs have risen sharply over the past decade, and Gen X is bearing much of that burden during its peak earning years.
Boomers also spend heavily on housing, but often in different ways. Many own their homes outright or sit on substantial equity after decades of appreciation. Their housing expenses often go toward renovations, upgrades, and maintenance rather than new purchases.
Remodeling kitchens, modernizing bathrooms, or preparing homes for aging in place has become common. For both generations, housing sets the financial baseline.
Gen X: High Income, High Obligation
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Generation X spends the most of any cohort at roughly $83,000 annually, and life stage plays a major role in that number.
Many Gen X households support children while also helping aging parents. The dual responsibility increases spending across several categories, including healthcare, childcare, elder care, personal insurance, travel, and technology.
Healthcare costs are also climbing as this group enters its late 40s and 50s. At the same time, caregiving responsibilities can strain cash flow. Surveys show Gen X carries more debt than any other age group, often tied to housing and family support.
Gen X also has the highest median income in the country. Many remain in prime career years, working remotely or extending retirement. Despite heavy obligations, their strong earnings fuel both required expenses and lifestyle spending.
Boomers: Spending From Asset Strength
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Baby Boomers control more than $80 trillion in wealth, and that financial cushion shapes their spending patterns.
Their money goes toward travel, dining and entertainment, luxury purchases, home improvements, healthcare, and financial support for grandchildren.
Healthcare consumes a larger share of their budget as medical needs increase. Older Americans consistently allocate a larger share of their annual expenditures to medical costs than younger groups.
Travel remains a major category. With careers winding down or fully behind them, many Boomers are prioritizing experiences. Strong stock market gains, appreciated real estate, pensions, and Social Security income have expanded their flexibility. They are using their wealth instead of shelving it.
Wealth Today and the Coming Transfer
Boomers hold roughly $80 trillion, while Gen X holds about $41.67 trillion. Over the next two decades, an estimated $124 trillion is expected to transfer through 2048, much of it from Boomers to younger generations.
The shift will alter spending patterns over time. For now, Gen X leads in annual outlays due to higher income levels and life-stage costs. Boomers command more total assets and direct them toward lifestyle and healthcare priorities.