This has been a rough year for the bottom line in millions of American households.
Not only has inflation surged, but the stock and bond markets are suffering through one of their worst-ever years. And now, home prices are beginning to fall.
But one generation, in particular, has really seen its finances suffer during 2022. Just 13% of baby boomers say their money situation is better this year compared with last year, according to a poll of 3,000 adults as part of the Fidelity Investments “2023 Financial Resolutions Study.”
Meanwhile, 43% of boomers say they are in a worse financial situation today compared with the same time in 2021.
Compared with other generations, baby boomers are significantly more likely to report that their finances did not improve this year. Here are the percentages who say their money situation is better now compared with a year ago:
- Generation Z: 43%
- Millennials: 39%
- Generation X: 25%
- Baby boomers: 13%
Fidelity notes that “declining retirement balances” might have contributed to this year’s downturn in the financial fortunes of boomers. It is clear from the numbers that the older you are, the more likely you are to report that 2022 was a bad year financially.
Baby boomers and members of Generation X likely have more wealth tied up in the stock market, which means they are feeling the brunt of this year’s stock market decline.
It is also possible that because so many boomers are now retired, they do not have job income to offset some of the losses they are experiencing in the stock market or to avoid spending down their portfolios.
How to grow wealthy in 2023
If your finances are stuck in neutral — or worse, slipping backward — the new year offers an opportunity to zoom ahead again. Start by enrolling in the Money Talks News course Money Made Simple.
MTN founder Stacy Johnson offers 14 weeks of lessons on money basics in this course. You will learn how to improve your financial life in all the following areas:
- Real estate
- Estate planning
After finishing these lessons, you will be ready to manage money more efficiently while spending less time getting the results you want. As Stacy writes:
“Whatever your situation, understanding and learning to control your money is going to improve your life. If you’re rich, you want to stay that way. If you’re not, you want to get that way.”