Financial Regrets of Gen X: Lessons Learned the Hard Way

Gen Xers Share Their Biggest Financial Regrets and How to Avoid Them

Gen X, often referred to as the “forgotten generation,” has had to navigate financial challenges without much guidance. Born before the internet era, many Gen Xers learned financial lessons the hard way, leading to some significant regrets.

GOBankingRates spoke with several Gen Xers about their biggest financial regrets and sought advice from Chris Urban, a financial planner, on how to fix, solve, or avoid these common financial pitfalls.

Taking Out an Adjustable-Rate Mortgage
Dayna Bennett, a 52-year-old academic counselor and single mom from California, shared her regret of taking out an adjustable-rate mortgage (ARM) loan with her ex-husband. The initial manageable payment of $1,400 per month skyrocketed to over $3,000 when the ARM rate changed, leading to financial strain. Urban advised opting for fixed-rate mortgages to avoid unexpected payment increases.

Not Learning a Trade
Heather Seggel, a 54-year-old former freelancer, regretted majoring in English in college and wished she had pursued a trade instead. Urban emphasized the cost-benefit of trade schools and the importance of having a clear plan when choosing a career path.

Taking On Credit Card Debt and Student Loans
Jennifer Frederick, a 48-year-old writer, shared her regret of accumulating credit card debt and student loans. Urban recommended exploring affordable education options like in-state colleges and work-study programs to minimize student loan debt.

Not Saving in a High-Yield Savings Account Sooner
Jenna Rhodes, a 48-year-old artist, wished she had learned about high-yield savings accounts earlier. Urban advised considering the purpose of the savings and not solely relying on interest rates for investment decisions.

Not Learning How To Budget
Shannon, a 47-year-old customer service representative, regretted not learning how to budget sooner. Urban suggested using budgeting apps or software for digital-minded individuals and seeking advice from financial experts with credentials.

Whether you’re a Gen Xer or not, financial regrets can be avoided with proper planning and education. By learning from the experiences of Gen Xers and seeking professional advice, individuals can make informed financial decisions and secure their financial future.