Unlock Financial Success: 5 Timeless Money Habits from the 1980s Every Millennial and Gen Z Should Adopt

Scrolling through social media, it’s hard to escape ads promising quick ways to build wealth. They often focus on crypto or side hustles that sound too good to be true.

But looking back, my parents’ generation seemed to manage their finances without all this noise. They experienced recessions, bought homes on single incomes, and saved for retirement without needing numerous investment apps.

A recent LendingClub survey revealed that over 60% of Americans live paycheck to paycheck. This raises an interesting question: what changed?

The 1980s had solid money habits that could still benefit us today. Maybe it’s time to adopt some of their wisdom.

1. They Chose Affordable Homes

When my parents bought their first house, it wasn’t a showpiece. It was practical. They focused on what they could afford rather than impressing others. They understood that a home should provide stability, not stress.

Today, many people aim for the biggest mortgage they can get, often overlooking daily expenses like student loans and groceries. In contrast, my parents stayed in a modest three-bedroom house for 15 years, feeling secure in their payments, even if something unexpected happened.

2. They Fixed Instead of Replaced

In the ’80s, fixing things was second nature. My dad had a toolbox and tackled repairs himself. Broken washing machine? He’d investigate. Lawn mower won’t start? He’d tinker until it worked.

Today, we often throw things away at the first sign of trouble. This mindset can lead to financial waste. Fixing an item fosters respect for its value. When you only replace, you train yourself to solve problems by spending—something that can lead to bigger financial issues.

3. They Saved Before Spending

My parents didn’t spend whatever was left over after their bills. They prioritized savings—setting aside 10% right away. This approach forced them to budget wisely with what remained.

Today, many people save only if they have money left over. Unfortunately, that often means saving very little. Financial experts suggest aiming for 10-12 times your annual income saved by retirement. This isn’t achieved by mere chance; it requires making saving a priority.

4. They Drove Used Cars

When I look at college parking lots today, I see students driving cars worth more than their parents’ first homes. My parents drove used cars without hesitation. They understood cars are for getting from point A to B—not for showing off wealth.

In the past, most people in my town preferred reliable used cars and drove them until they had issues. Somewhere along the line, society shifted to equate car ownership with success. The reality? A dependable used car can get you places just as effectively as a shiny new model.

5. They Didn’t Shop for Fun

In the ’80s, shopping wasn’t a leisure activity. You went to the store with a purpose, bought what you needed, and moved on. My mom remarked that shopping felt like a chore, not a pastime.

These days, “retail therapy” is popular. In 2023, households spent an average of $655 on women’s clothing. But how much of that was necessary compared to just wanting to fill time? Shopping shouldn’t be a default activity. Finding cheaper ways to entertain yourself can be better for your bank account.

The Takeaway

I’m not advocating for a complete return to the past, but the financial mindset of the ’80s offers valuable lessons. Their habits were not about deprivation; they recognized money as a tool, not a solution to all problems. They understood the difference between needs and wants.

Adopting even a few of these old-school habits could provide a new perspective on managing finances today. What resonates most with you? Embracing some financial wisdom from the past might just be the key to a more secure future.

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