Gen X: Here Are 4 Key Signs You’re Doing Better Financially Than Boomers Were at Your Age

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Generation X has faced very different economic times than their parents. They’ve grappled with multiple recessions, the tech evolution and shifting societal norms. But despite these challenges, Gen Xers didn’t just survive — many figured out how to truly succeed with their finances.

Gen Xers learned from watching their baby boomer parents make money mistakes. They saw what can happen with too much debt or not saving enough. They gained valuable life lessons about carefully managing debt, investing and planning ahead for retirement.

Here are the four key signs that you, a member of Gen X, are doing better financially than baby boomers were doing at your age.

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You Understand Debt and How To Use It

Previous generations often treated credit card balances and personal loans as a necessary evil. But Gen Xers have embraced variable debt while also knowing they need to pay it down as quickly as possible.

“Gen X have the opportunity to be better prepared for large changes in rates which shocked boomers during the ’80s when rates hit all-time historical highs,” said Karl Jacob, CEO of LoanSnap. “So, if you are paying down your debts that are tied to interest rates, like credit cards, you are already doing better than boomers.”

Maybe your parents avoided debt altogether. So you learned that carrying high-interest debt is a surefire way to sabotage yourself. But you also understand the strategic use of debt as a tool for building wealth and achieving your goals.

“In general, Gen X has the opportunity to learn from the mistakes of the boomers,” said Jacob. “Don’t rely on rates being low forever and instead make your finances as ‘rate-proof’ as possible. For those who do not learn from the history of boomers, who suffered during radical changes in interest rates, are doomed to repeat the same mistakes. Learn from the boomers and use fixed-rate debts like home equity loans to pay off variable rate loans like personal loans and credit cards.”

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You Own a House

Gen Xers have faced unprecedented challenges in the housing market. But if you’ved achieve homeownership, that’s a huge marker of financial stability.

“Most boomers just bought a house and hoped for the best,” said Jacob. “Some chose an adjustable-rate mortgage which was a bad choice. For instance, if you bought a house in the ’70s and used an adjustable-rate mortgage your monthly payments more than doubled in the ’80s.”

But Gen Xers have had the advantage of historically low interest rates. If you bought a starter home in your 20s or 30s, it may have tripled or quadrupled in value since then. Which means that your home is not just a nice and stable living environment, but also a valuable asset. Home values are only going to continue to appreciate, but you’ve already positioned yourself for a secure future.

“Gen X began their housing journey with lower home payments compared to baby boomers,” said Lauren Williams, co-founder of ProsperPlan. “This advantage allowed them to allocate more funds toward savings and investments.”

You Take Advantage of Technology

Having come of age during the beginning of the internet and witnessing the rapid evolution of digital tools, Gen Xers have seamlessly integrated technology into their financial lives.

“Gen X is the first generation born with access to online investment accounts and automated investing throughout their careers,” said Williams. “This technological advantage has made it easier for them to manage their finances and investments efficiently. “

Gen Xers were the first to widely adopt financial technology and online investing tools that can help build wealth.

Jacob shared a story of how his company recently helped a Gen X client achieve financial relief by using AI.

“Just last week we helped a Gen Xer cut their monthly debt payments more than in half,” said Jacob. “From $5,000 a month to $1,700 a month. It’s a common technique — borrow money at a low rate to pay off debt that’s at a higher rate — but AI supercharges our ability to do this and does it in seconds where it would take even a really good loan officer a couple of days to come up with even one-tenth of the options.”

You’re Concerned About Social Security

Social Security’s financial troubles are a big concern for Gen Xers.

“Unlike boomers, who may have had more confidence in government benefits like Social Security, Gen X has been more concerned about the sustainability of these programs,” said Williams. “This concern has motivated them to invest early and consistently in order to secure their financial future.”

Because Gen Xers know that relying solely on Social Security may not be a viable option, they’re actively contributing to 401(k) plans, IRAs and other retirement funds.

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This article originally appeared on GOBankingRates.com: Gen X: Here Are 4 Key Signs You’re Doing Better Financially Than Boomers Were at Your Age