The start of a new year is a good time to look back at how your finances went the year before, set new goals, and make a plan for the months ahead. Everyone needs a solid foundation—like a budget that fits their income and goals—but people from different generations tend to handle their money in different ways. According to the Wealth Watch 2025 outlook survey from New York Life, each generation has its own habits and ways of thinking about money. These differences can help shape a financial plan that fits both short-term and long-term goals.

So, what does the New York Life Wealth Watch research say about how each generation should approach financial planning in 2025?

Gen Z: Stay focused and take bold steps toward your goals
Gen Z reported the highest savings goals for 2025, aiming to save an average of $22,374.36. They also hope to retire earlier than other generations—at age 60, which is about five to six years sooner than most others. These are big goals, and to meet them, Gen Z will need to take strong steps while also being realistic. Since many are still new to the workforce and dealing with challenges like inflation, reaching these savings goals may take time. It is important for Gen Z to be patient and use all the resources available to them—like workplace benefits, advice from family members who know about money, or free online tools—to move steadily toward financial security.

Millennials: Build a strong plan that fits your current stage of life
Millennials are no longer the “young” generation. Their strong savings in 2024—an average of $12,004.87, which is nearly double the national average—shows that they are serious about their money. This also pushes back against the idea that small daily purchases, like fancy coffee or brunch, are what hold people back from saving. As the oldest Millennials turn 44 in 2025, many are in their highest earning years. At the same time, they are likely facing high costs related to raising children, caring for aging parents, taking care of themselves, and planning for the future. To handle all of this, Millennials should consider working with a trusted financial professional. The right advice can help them make the most of their income now and prepare for the years to come.

Gen X: Use the time left before retirement wisely
The oldest Gen Xers turn 60 this year, putting them close to retirement age. However, this group has the highest average credit card debt at $10,140.99 and reports feeling the least confident about their finances. This makes it important for Gen X to work with a financial professional who can help them create a clear and realistic retirement plan. This plan might include fully retiring or switching to part-time work, which many people are now considering. Gen X should also make use of catch-up 401(k) contributions and ask about other workplace benefits that might help them. There is still time for this group to make strong progress toward a stable future, but it is important to act now.

Baby Boomers: Secure what you’ve worked hard to build
According to the Wealth Watch survey, Baby Boomers mostly prefer saving their money in cash, with 67% using checking accounts and 49% using regular savings accounts. Other common options include retirement accounts like 401(k)s or IRAs, and life insurance. But what will happen to this money in the future? Baby Boomers need to clearly state their wishes through estate planning, and they should talk openly with family members and financial professionals. These conversations can be tough, but they only get harder with time—and waiting too long can mean your plans are not carried out the way you want. By planning ahead now, Baby Boomers can help make sure that the process of passing down assets is smooth and stress-free. A financial professional can also make these talks easier, both emotionally and practically.

“Americans across generations are faced with ongoing change and uncertainty, which can make planning challenging,” said Jessica Ruggles, corporate vice president of Financial Wellness at New York Life. “Our data has shown people who work with financial professionals tend to feel more secure and are more likely to have a financial strategy in place, inclusive of retirement savings and debt management. The new year is a great opportunity to adopt and adjust a financial strategy to adequately support unique needs.”