Americans Are Spending More With Baby Boomers Opening Their Wallets The Most

Americans are spending more, with Baby Boomers leading the charge.

In January, consumer spending per household rose by 1.9% year-over-year, despite a 0.4 month-over-month decline, according to a new report.

The decline was likely related to severe weather in the South, according to Bank of America Institute's Consumer Checkpoint.

Bank data showed that spending growth increased across generations, but Baby Boomers saw the highest jump, nearly 4% year-over-year.

Gen X also saw its first positive spending growth in nearly two years.

Auto sales increased since late 2024, with a 3.8% growth over the previous year. While auto sales in January 2025 saw a drop from strong November and December levels, they were still up 3.8% year-over-year. BofA Global Research forecasts 16.5 million auto sales in 2025, which it considers a "healthy" number.

The institute says fears over tariffs may be pushing consumers to move up auto purchases early.

Rising wages and a 2.5% Social Security cost-of-living adjustment have likely contributed to Baby Boomers' spending power.

Household finances for millennials, Gen Z, Gen X and Baby Boomers that participated in a 401(k) plan remained stable, with 401(k) contribution rates increasing.

Median checking and savings deposit balances continued to decline since last year across all generations.

An annual Yahoo! Finance/Marist poll found that 1 in 3 heads of households said they don't have enough savings to last for a month if they lose their job.

Americans across all generations also report only paying the minimum payments as credit card balances rose.

A Charles Schwab survey found another differing financial practice between Baby Boomers, millennials and Gen Xers.

The survey revealed that Baby Boomers preferred to transfer their wealth to their heirs after they die, while millennials and Gen Xers want it to be distributed during their lifetime.