A Baby Boomer's Favorite Way To Budget And Save Money Isn't What You Might Think

There's no question that people spend much of their daily lives on their phones — sending texts, reading news, scrolling through Instagram, and even shopping for groceries. When it comes to using mobile budgeting apps, however, not everyone is a fan. Despite the wide array of budgeting apps available — which many younger Americans use to track their spending and savings — baby boomers tend to prefer a different, more hands-on approach.

According to a February 2023 survey conducted by MX Technologies on financial wellness, nearly a quarter of baby boomers — most of whom are currently in their 60s and 70s — said they never use apps to manage their finances. Roughly a third of boomers reported not having any financial apps on their phones at all. So how did they report managing their money? Almost half said they simply look over their accounts to track monthly expenses and manage their budget, while nearly a quarter reported taking it a step further — using spreadsheets and other time-tested record-keeping methods.

Much of baby boomers' preference for manual budgeting methods stems from security concerns. According to a June 2023 study from AARP examining the adoption of financial technologies among adults, 59% of respondents ages 65 and older said they were uncertain about the legitimacy of new financial apps, while at least half cited concerns about app security, account hacks, and potential misuse of personal information. Those worries were far less common among adults aged 25 to 49, with just 39% of the cohort concerned about app legitimacy and roughly 30% to 40% worrying about other security-related issues.

Boomers are unlikely to warm to budgeting apps in their lifetime. According to the AARP survey, only 15% of those ages 65 and over said they were likely to use budgeting apps in the future. This was lower than the 21% of the 50-to-64 age group who said they planned to use them, and well below the 38% of adults aged 25 to 44 who said they expected to. Although boomers have been opting out of budgeting apps, there is one type of fintech they're more likely to use: bill pay. According to the AARP study, 31% of adults 65 and over said they planned to use a bill pay app in the future. That was nearly double the next most popular option — sending money to friends or relatives within the U.S. As boomers are most likely to pay off their credit card balance each month, it makes sense that they'd be inclined to embrace an easier way to do so.

But just because boomers haven't embraced budgeting apps doesn't mean they're opposed to using technology in general to manage their money. According to an October 2023 survey conducted by GWI, which asked boomers which life tasks they believed technology was most essential for, the vast majority, 73%, pointed to managing their money. That ranked higher than any other category, including keeping up with current events (69%), home security (59%), entertainment (58%), and shopping (57%).