Boomers, Gen X, Gen Y, Gen Z, Gen A and Gen B explained

What separates Generation Y from X? Do Millennials and Gen Z share financial struggles? And hey, Gen A, make room for the new kids on the block. What’s the cutoff? How old is each generation? Are they really that different?

If you’ve ever felt muddled by this "alphabet soup" of names — you’re not alone. It’s easy to see why there is so much confusion about generational cohorts.

Gen X is estimated to spend over $15 trillion globally in 2025, making them the highest spending generation due to financial responsibilities for children, aging parents, and their households.

And though their current wealth has been dragged down by not one but two “once-in-a-lifetime” economic crises during their most impactful career years, Millennials stand to inherit over $68 trillion from Baby Boomer and early Gen X parents by the year 2030, setting them up to potentially be the wealthiest generation in U.S. history.

Generation Z isn’t far behind, projected to hit $36 trillion in income by 2030. That number rises to $74 trillion by 2040. Though current economic conditions have led them to put off major life events — like buying a home or having children.

Generation Alpha is the name given by social analyst Mark McCrindle to the children of Millennials. It’s estimated there are approximately 2 billion members of Generation Alpha across the globe in 2025.

But Gen A is no longer the youngest generation. 2025 marks the beginning of Generation Beta. Generation Beta will be born from 2025 to 2039. By 2035, they will make up 16% of the global population and many will live to see the 22nd century.

No matter how you slice the data, the younger generations have never been more critical to your financial institution’s future.

Unless you understand who they are and what they want, you won’t capture a dollar of their money.

People grow older. Birthdays stay the same.

A common source of confusion when labeling generations is their age. Generational cohorts are defined (loosely) by birth year, not current age. The reason is simple — generations get older in groups. If you think of Millennials as college kids (18-22), then not only are you out of date — you’re thinking of a stage in life, not a generation. Millennials are now well out of college, and that life stage is dominated by Gen Z.

Another example, a member of Generation X who turned 18 in 1998 would now be over 40. In that time, he or she cares about vastly different issues and is receptive to a new set of marketing messages. Regardless of your age, you will always belong to the generation you were born into.

The breakdown by age looks like this:

Baby Boomers: Baby boomers were born between 1946 and 1964. They're currently between 61 and 79 years old (approximately 73 million in the U.S.)
Gen X: Gen X was born between 1965 and 1979/80 and is currently between 45 and 60 years old (approximately 65 million people in the U.S.)

Gen Y: Gen Y, or Millennials, were born between 1981 and 1994/6. They are currently between 29 and 44 years old (around 74 million in the U.S.)

Gen Y.1 = 29-33 years old (around 32 million people in the U.S.)

Gen Y.2 = 33-44 (around 42 million people in the U.S.)

Gen Z: Gen Z is the newest generation, born between 1997 and 2012. They are currently between 13 and 28 years old (nearly 69 million in the U.S.)

Gen A: Generation Alpha starts with children born between 2012 and 2024 They are currently between 0 and 13 years old (about 51 million people in the U.S.)

Gen B: Generation Beta starts with children born in 2025 and will continue through 2039.

The term “Millennial” has become the popular way to reference both segments of Gen Y (more on Y.1 and Y.2 below). “Millennial” is widely credited to Neil Howe, along with William Strauss. The pair coined the term in 1989 when the impending turn of the millennium began to feature heavily in the cultural consciousness.

Sometimes labeled with the moniker “Zillennials”, those wedged at the tail end of Millennials and the start of Gen Z are sometimes labeled with this moniker — a group made up of people born between 1994 and the year 2000. Those born between 2001 and 2012 may identify with the term “Zoomers.”

Gen Alpha has several nicknames, such as “Generation Glass” or “iPad Kids,” referring to their early interaction with screens and technology. Since many Gen A children have Millennial parents, they can also go by the term “Mini Millennials.” Popularized on TikTok, “Honey Badgers” highlights the generation’s fearlessness and tendency to challenge authority.

Generation Beta is the name for the new, youngest generation on the planet. However, in the same way Gen Y morphed into Millennials and Gen Z became Zoomers, it's possible that members of Gen B may adopt new names as they grow up. But first, they’ll need to learn to talk.

Why are generations named after letters?

It started with Generation X, people born between 1965-1980. The preceding generation was the Baby Boomers, born 1946-1964. Post-World War II, Americans enjoyed newfound prosperity, which resulted in a "baby boom." The children born as a result were dubbed the Baby Boomers.

But the generation that followed the Boomers didn’t have a blatant cultural identifier. In fact, that’s the anecdotal origin of the term Gen X — illustrating the undetermined characteristics they would come to be known by. Depending on whom you ask, it was either sociologists, a novelist, or Billy Idol who cemented this phrase in our vocabulary.

From there on it was all down-alphabet. The generations following Gen X naturally became Gen Y and Gen Z. While some say Generation Alpha is named for the first letter of the Greek alphabet and denotes the first of a series of items or categories, Generation Alpha may also just be an easy way to round the corner into a new alphabet, which would explain how we arrived at Generation Beta.

Splitting up Gen Y

Javelin Research noticed that not all Millennials are currently in the same stage of life. While all Millennials were born around the turn of the century, some of them are still in early adulthood, wrestling with new careers and settling down, while the older Millennials have a home and are building a family. You can imagine how having a child might change your interests and priorities, so for marketing purposes, it's useful to split this generation into Gen Y.1 and Gen Y.2.

Not only are the two groups culturally different, but they’re in vastly different phases of their financial life. The younger group is just now flexing their buying power. The latter group has a more extensive history and may be refinancing their mortgage and raising children. The contrast in priorities and needs is stark.

The same logic can be applied to any generation that is in this stage of life or younger. As we get older, we tend to homogenize and face similar life issues. The younger we are, the more dramatic each stage of life is. Consider the difference between someone in elementary school and high school. While they might be the same generation, they have very different views and needs.

Marketing to young generations as a single cohort will not be nearly as effective as segmenting your strategy and messaging.

Why are generation cohort names important?

Each generation label serves as a shorthand to reference nearly 20 years of attitude, motivations, and historical events. Few individuals self-identify as Gen X, Millennial, or any other name.

They’re useful terms for marketers and tend to trickle down into common usage. Again, it’s important to emphasize that referring to a cohort only by the age range gets complicated quickly. Ten years from now, the priorities of Millennials will have changed — and marketing tactics must adjust instep. There are also other categories of cohorts you can use to better understand consumers going beyond age or generation.

Remember, these arbitrary generational cutoff points are just that. They aren’t an exact science and are continually evolving.

Whatever terminology or grouping you use, the goal is to reach people with marketing messages relevant to their phase of life. In short, no matter how many letters get added to the alphabet soup, the most important thing you can do is seek to understand the soup du jour for the type of consumer you want to attract.

What makes each generation different?

Before we dive into each generation, remember that the exact years born are in dispute, because there are no comparably definitive thresholds by which the later generations (after Boomers) are defined. But this should give you a general range to help identify what generation you belong in.

The Baby Boomer Generation

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Boomer Birth Years: 1946 to 1964
Current Age: 61 to 79
Generation Size: 73 million
Media Consumption: Baby Boomers are the biggest consumers of traditional media like television, radio, magazines, and newspaper. Despite being so traditional, 91% of baby boomers have a Facebook account. This generation has begun to adopt more technology in order to stay in touch with family members and reconnect with old friends.
Banking Habits: Boomers prefer to go into a branch to perform transactions. This generational cohort still prefers to use cash, especially for purchases under $5.
Shaping Events: Post-WWII optimism, the cold war, and the hippie movement.
What's next on their financial horizon: This generation is experiencing the highest growth in student loan debt. While this might seem counterintuitive, it can be explained by the fact that this generation has the most wealth and is looking to help their children with their student debt. They have a belief that you should take care of your children enough to set them on the right course and don't plan on leaving any inheritance. With more Americans outliving their retirement fund, declining pensions, and social security in jeopardy, ensuring you can successfully fund retirement is a major concern for Boomers.

Generation X

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Gen X Birth Years: 1965 to 1979/80
Current Age: 45 to 60
Generation Size: 65 million
Other Nicknames: "Latchkey" generation, MTV generation
Media Consumption: Gen X still reads newspapers, magazines, listens to the radio, and watches TV (about 165 hours' worth of TV a month). However, they are also digitally savvy and spend roughly 7 hours a week on Facebook (the highest of any generational cohort).
Banking Habits: Since they are digitally savvy, Gen X will do some research and financial management online, but still prefer to do transactions in person. They believe banking is a person-to-person business and demonstrate brand loyalty.
Shaping Events: End of the cold war, the rise of personal computing, and feeling lost between the two huge generations.
What's next on Gen X's financial horizon: Gen X is trying to raise a family, pay off student debt, and take care of aging parents. These demands put a high strain on their resources. The average Gen Xer carries $142,000 in debt, though most of this is in their mortgage. They are looking to reduce their debt while building a stable saving plan for the future.

Millennials (Gen Y)

B2BCOM-4161-Millennail Gen Y-2025

Millennial Birth Years: 1980 to 1994/6
Current Age: 29 to 44
Generation Size: 74 million
Other Nicknames: Gen Y, Gen Me, Gen We, Echo Boomers
Media Consumption: Most Millennials still watch TV but Netflix edges out traditional cable as the preferred provider. Cord-cutting in favor of streaming services is the popular choice. This generation is extremely comfortable with mobile devices, but 36% would choose to use a laptop to make larger online purchases of $150 or more. They typically have multiple social media accounts.
Banking Habits: Millennials have less brand loyalty than previous generations. They prefer to shop products and features first, and have little patience for inefficient or poor service. Because of this, Millennials place their trust in brands with superior product history such as Apple and Google. They seek digital tools to help manage their debt and see their banks as transactional as opposed to relational.
Shaping Events: The Great Recession, the technological explosion of the internet and social media, and 9/11
What's next on their financial horizon: Millennials are powering the workforce, but with huge amounts of student debt. This is delaying major purchases like weddings and homes. Because of this financial instability, Millennials choose access over ownership, which can be seen through their preference for on-demand services. They want partners that will help guide them to their big purchases.

Gen Z

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Gen Z Birth Years: 1997 to 2012
Currently Aged: 13 to 28
Generation Size: 69 million
Other Nicknames: iGeneration, Post-millennials, Homeland Generation
Media Consumption: The average Gen Zer received their first mobile phone between 10 and 13 years old. Many of them grew up playing with their parents' mobile phones or tablets. They have grown up in a hyper-connected world and the smartphone is their preferred method of communication, spending around 4 hours a day on their mobile device.
Banking Habits: This generation has seen the struggle of Millennials and has adopted a more fiscally conservative approach. They want to avoid debt and appreciate accounts or services that aid in that endeavor. Debit cards top their priority list, followed by mobile banking.
Shaping Events: Smartphones, social media, never knowing a country not at war, and seeing the financial struggles of their parents (Gen X).
What's next on Gen Z's financial horizon: Learning about personal finance. They have a strong appetite for financial education and are opening savings accounts at younger ages than prior generations.

Generation Alpha

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Generation Alpha Birth Years: 2012 to 2024
Currently Aged: 1 to 13
Generation Size: 51 million
Other Nicknames: Generation Glass, iPad Kids, Mini Millennials, Honey Badgers
Media Consumption: Members of Gen A are being raised in homes with smart speakers and devices everywhere; technology is built into everyday items. Many of them attended school virtually thanks to the global pandemic and are gravitating toward online learning with programs such as Khan Academy, Prodigy, and IXL. Many have even had a digital presence since before they were born, with their Millennial parents creating social media handles for their infants.
Banking Habits: Although some of the oldest Alphas may have accounts such as Greenlight, they do not have defining banking habits. They’re digital natives that will expect fully integrated, personalized consumer experiences. Based on current data, it appears that Alphas will be one of the most highly educated and wealthy generations. It is not clear if their banking habits will be influenced by their parents (i.e. “My parents bank here, so do I.”) or by other factors.
Shaping Events: Global pandemic, social justice movement, Trump-era politics, and Brexit.
What’s next on Generation Alpha’s financial horizon: As digital natives who view the world through a collection of screens, Alpha’s will be even more disconnected from the idea of cash. They will likely first encounter money as a number on a screen and spend it through apps and other forms of ecommerce.

Generation Beta

Generation Beta will be born from 2025 to 2039. By 2035, it’s estimated they will make up 16% of the global population. As the children of younger Millennials and older Zoomers, many will live to see the 22nd century.

Gen Beta won’t just be digital natives. They’ll be AI natives. This will be the first generation raised with fully integrated AI companions, smart homes, and personalized AI tutors.

According to McCrindle, “Their formative years will be marked by a greater emphasis on personalization — AI algorithms will tailor their learning, shopping, and social interactions in ways we can only begin to imagine today.”

This comfort with AI may lead to increased adoption of AI-native financial tools, such as robo-advisors, smart budgeting apps, voice assistants, and automated investment platforms. Community banks and credit unions can help lay the financial foundation for Gen Beta today with 529 college savings plans, custodial IRAs, and financial literacy programs.

Are generations the best way to categorize consumer behavior?

Knowing generational trends is important, as they can unveil similar attitudes and behaviors among consumers who experienced world events at the same life stage as their cohorts. And it doesn’t hurt to understand these age groups since marketing tools and audience segmentations generally include age as a factor.

But the generations don’t tell the whole story, and their behaviors can be hard to lock down. After all, every generation grows up. So can you rely on age ranges alone? Here's what we think.

Do generations bank differently?

Absolutely, and for several reasons.

Each generation has been in the workforce for different lengths of time and accumulated varying degrees of wealth.

Baby Boomers have an average net worth of $1,680,750 and a median net worth of $387,200.

Gen Xers average net worth is around $975,800 but the median is $247,200.

Millennials have an average net worth around $365,725 but their median net worth is $87,300.

Gen Z's average net worth is difficult to report on since so much of the generation has no net worth or career as of yet.

Each generation is preparing and saving for different life stages; be that retirement, children's college tuition, or buying a first car.

Each generation grew up in evolving technological worlds and has unique preferences in regard to managing financial relationships.

Each generation grew up in different financial climates, which has informed their financial attitudes and opinions of institutions.

How are these banking differences appearing in the marketplace?

Brick-and-mortar branches provide peace of mind.

This might not come as a surprise, but fewer consumers are visiting branch locations. 47% visit their institution a few times a year or less, while 29% visit monthly, 12% visit weekly, and 13% said they never visit a physical branch. Millennials were the most likely generation to say they never visit a branch.

However, a 2024 study by Rivel Banking Research found that 69% of consumers want a branch within 15 minutes of their home to consider switching to a new institution. This preference remains relatively consistent across ages and income levels. Consumers want to know a human is nearby and available to answer questions or help with more complex transactions.

Younger generations REALLY love mobile banking.

If branches are a last resort, digital experiences are the first point of contact. MarketWatch’s 2025 Banking Habits by Generation Guide found that Millennials (75%) and Gen Z (74%) prefer accessing their accounts through mobile banking by wide margins compared to other methods. The results vary more for older generations. Gen X still prefers using their mobile banking app but only by 54%, followed by online banking with their computers at 27% — whereas Baby Boomers prefer computers (39%) to mobile apps (38%).

Every American consumer feels the sting of rising prices and inflation, but some feel that pain more acutely than others, which is reflected in their digital engagement behaviors. Zoomers check their accounts more often than other generations. Nearly half check their accounts daily — and nearly one in five check multiple times per day.

AI may raise expectations about your chatbot.

SurveyMonkey ran an AI sentiment study of 25,030 US adults that revealed distinct generational patterns in AI adoption and usage, with 30% of younger generations using it weekly. Gen Z leads in educational use, with 61% using AI for education, which contrasts sharply with older generations' focus on workplace applications. Gen X (53%) and Millennials (50%) primarily use AI for professional tasks.

This is backed up by Deloitte’s 2024 Connected Consumer Survey, which also showed that adoption is more pronounced among younger generations. Half of Zoomers and Millennials surveyed use or experiment with gen AI — compared with 38% of Gen Xers and 22% of Baby Boomers. Of the Gen Zs and Millennials who use gen AI for projects, 42% said they do so every day.

Traditional chatbots provide scripted answers to specific questions such as, "What is your routing number?" AI-powered bots could generate detailed responses to more complex queries and even recommend complementary products or services based on the account holder’s data.

Investing in AI-powered chatbots may help remove friction when consumers reach out for help while reducing the burden on frontline staff. As consumers make digital platforms their primary form of engagement, this also presents an opportunity to make even better first impressions with prospective account holders or borrowers.

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Boomers, Gen X, Gen Y, Gen Z, Gen A and Gen B explained

Posted By Kasasa | September 3, 2025