Younger people often hear parents or grandparents lamenting about how inexpensive things seemed to be “back in their day.” Gas was only 50 cents, milk was cheaper. Today, the price of consumer goods and the housing market have increased with inflation and economic upheaval compared to previous decades, but unfortunately, wages and purchasing power have not kept up with the demands on our wallets. The economic context of each generation informs their financial attitudes, which impacts behavior and financial outcomes. Throughout this study, we investigate the associations between generational cohort, frugal financial attitudes, and financial well-being. This study includes three research questions: RQ1) How is generational cohort associated with frugal financial attitudes (e.g., setting up emergency funds, spending less than earned, and perceived low debt burden)? RQ2) How is generational cohort associated with financial well-being? RQ3) How are frugal financial attitudes associated with financial well-being? Frugal attitudes positively influence financial well-being across all five generational cohorts. These findings suggest that fostering frugal financial attitudes can serve as protective factors that enhance perceived financial satisfaction and security.

Accepted Oral Presentation