Why generational labels are hurting our finances

Generational stereotypes may seem fun and harmless, but they can be harmful to your finances and your relationship with money, according to the latest research from Unbiased.

Summary

• Generational stereotypes and the language used in financial media can harm your relationship with money.

• Unbiased’s research revealed some worrying findings and calls for an end to generational labels.

• Our Earn Money Without Age campaign, makemoneyageless.com offers insight into how bad financial stereotypes can be by giving a media persona based on your year of birth.

• Getting expert financial advice can help you achieve your future goals.

Unbiased conducted a study to examine the impact that generational labels and stereotypes in the media are having on people’s relationships with their finances.

They worked with a team of UCL researchers led by Dr Nick Gadby to study how language is used in more than 2,500 articles in the personal finance media.

The findings show an overwhelming use of negative stereotypes, which significantly influence our financial and mental well-being.

Impartial wants to eliminate negative talk about personal finances, removing generational labels and allowing people to be objective about their finances, be it pensions, mortgages or investments.

Getting expert advice from a qualified financial advisor can help you achieve your financial goals based on your specific circumstances, not stereotypes portrayed in the media.

As part of our Make Money Ageless campaign, makemoneyageless.com offers insight into how bad financial stereotypes can be by giving you a media personality based on your birth year.

‘selfish villains’ vs ‘dispossessed wretches’

According to the media, the so-called baby boomers (born between 1946 and 1964) are “selfish” villains, as more than half of the articles (53%) portray them in a negative light.

71% of articles about personal finance framed baby boomers as antagonists in stories about so-called “stressed” millennials (born between 1981 and 1996) and Generation Z (born between 1997 and 2012).

While baby boomers are portrayed as villains, millennials are framed as victims of circumstance, with more than half of articles (57%) framing them as “unhappy dispossessed.”

However, some generational groups are largely ignored, with only 5% of articles exploring the personal finances of the so-called Generation X (born between 1965 and 1980).

Why stereotypes are so harmful

By exploiting generational stereotypes, no one benefits, as it can undermine financial confidence and reduce engagement with our finances.

“The generational labels that our society uses to classify people have become stigmatized – they now have much more meaning than just telling us someone’s age, they carry a value judgment,” says psychologist Dr. Linda Papadopoulos.

“For example, it’s fair to say that calling someone a baby boomer is actually an insult.

“And they become a self-fulfilling prophecy – we are told we are something, we unconsciously begin to live up to it, and then it comes true.

“Decades of psychological research make it clear how powerful this cycle can be.

“What’s important is to free ourselves from these ways of thinking that affect us all – and act as individuals.”

She urges people to ignore these generational labels and take control of their financial future.

What key findings did our research reveal?

Our research exposed three main findings.

1. Generational stereotypes through language are turning us into “haves” and “have-nots”

Long-standing tensions between different generations are often based on the situations they face and the feelings surrounding them.

Research revealed that 69% of articles on generational finance examine just one group, meaning they lack the context and information for a complete picture.

There is also a notable split in sentiment, outlined below:

• In 57% of personal finance articles, millennials typically receive positive coverage and are traditionally seen as victims and “trapped have-nots.”

• Only a quarter of articles aimed at so-called baby boomers have a positive sentiment, with 53% of their stories appearing negative and creating a “selfish rich” narrative.

• For Gen Z, 53% of articles are positive, but they also see a lot of negative representation, 21%, compared to just 2% negativity directed at millennials. They are typically seen as “conflict dispossessed”.

Our research revealed that most negative articles about baby boomers portray them as “mean, greedy and selfish,” oblivious to their advantages and ignorant of the problems facing younger people.

However, this appears to be an unfair generalization as 2.1 million people over the age of 65 live in relative poverty in the UK, according to the Center for Aging Better.

In real terms, this equates to almost one in five people in this age group who may not be able to pay their household bills, let alone support others.

While some generations are the main focus, others have been almost forgotten. Gen X is only mentioned in 5% of financial articles, despite making up 20% of the UK population.

Generation X has been neglected because it does not easily fit into a narrative of generational difference or conflict.

2. Stereotypes favor hostile narratives over those that can show common ground

In about a third of financial articles that directly compare generations, there is a greater potential for hostility, leading these groups to be pitted against each other.

For example, when baby boomers are compared to other generations, such as those who ask what is best or what “wins,” almost half are hostile, while only 15% find common ground.

Many articles can be overtly combative, asking readers to “dismiss” younger generations or accusing baby boomers of spending money they should pass on to future generations.

3. The highly emotive language of generational stereotypes is making people feel trapped

Our research highlights the different emotional language used by each generation and the impact it is having:

• Y generation: The emotional language used in financial media is largely negative, including “frustrated” and “anxious,” suggesting they are stuck. Positive language tends to be passive, such as “optimistic” and “hopeful,” contrasting with baby boomers and the perception of wealth.

• Baby boomers: The language often suggests stability and security, including words like “lucky” and “comfortable.” However, there is a lot of negative language with this group being labeled as “selfish” and “stubborn”.

• Generation Z: The language around Gen Z often reflects a “can do” generation through terms like “resilient” and “ambitious.” However, there are some negative terms used, such as “lazy” and “stressed”.

• Comparing generations: Often, when generations are compared, the language is negative, with terms like “worry” and “frustration”. Younger readers may see more emotional words including ‘jealous’, ‘bitter’ and ‘disillusioned’ to suggest resentment towards older people, whilst the latter may see terms such as ‘shame’.

The impact of stereotypes on financial content

Our research also revealed that generalizations do not end with the language used and the stereotypes created.

When an author tries to offer financial advice, it is often too general to be of any use or benefit. For example, this guidance often includes ‘money-saving tricks’, creating an ’emergency fund’ or ‘following your shopping list’.

While these tips can be helpful, they fail to recognize the unique financial goals and challenges that people face at different stages of their lives.

Therefore, someone ready to retire will need different advice than someone in their 30s who is thinking about starting a family.

Need financial advice?

If you have financial goals you want to achieve, seek advice from a qualified financial advisor. They can analyze your specific circumstances and recommend the best course of action.

Impartial can connect you with a financial advisor after you complete this one minute form.

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