Introduction
This series offers analysis on multigenerational households, based on data from this demographic in an in-depth poll the National Endowment for Financial Education (NEFE) conducted in 2024. For more information on this poll, as well as others led by NEFE and the purpose of its opinion polling, click here.
Given the unique experiences multigenerational families face, their outlook on both macroeconomic conditions and their personal finances lends a unique view into their lives. We asked U.S. adults in multigenerational households to rate the quality of their current financial life, how they rate the economic conditions of their own community and the country, and how they think the financial pressures they face now will compare to both the generation(s) before them and those that come after them. These questions provide an interesting insight into how adults in multigenerational households are feeling about their individual finances, macroeconomic conditions, and their change over time. We also found that taking financial education in secondary school, and finding such education useful, has a significant impact on quality of financial life, macroeconomic conditions, and generational financial outlook.
Relationship between Quality of Financial Life and Macroeconomic Sentiment
The poll asked respondents to report the current quality of their financial life in annual surveys over several years. Adults in multigenerational households report a “better than expected” quality of financial life 16% of the time, compared to 38% reporting “about what they expected” and almost half (46%) reporting a “worse than expected” quality of financial life. This is a stark difference compared to our nationally representative 2024 sample, taken just seven months prior, which reports 22% of adults saying their current quality of financial life is “better than expected,” 46% saying it is “about what expected” and 31% saying it is “worse than expected.”
There is a 15-percentage point increase in reporting a “worse than expected” quality of financial life between the general adult population and adults in multigenerational households, suggesting that they are facing unique financial challenges, which impact their financial well-being. It is also important to note that our nationally representative survey in 2024 includes multigenerational households as well. Considering that 55% of this sample was categorized as living in a multigenerational household, the nationally representative sample likely includes a large portion of respondents who have these caregiving responsibilities. If we compare multigenerational households to the rest of the U.S. adult population, it is likely that the differences would be more profound.
Adults in multigenerational households tend to rate the economic conditions of their community more favorably than the conditions of the country. Twenty four percent of adults rate the economic conditions of their community as poor, compared to 39% of people rating the economic conditions of the country poor. Additionally, adults tend to view their individual finances more favorably than both their communities and the country, with 16% of adults reporting a “better than expected” quality of financial life compared to 7% ranking economic conditions of their community as excellent and 5% ranking the country excellent.
Adults who feel better about their own finances are more likely to feel excellent about their community and country’s economic conditions, compared to the general population. Twenty three percent of those who report a quality of life that is “better than expected” report excellent economic conditions in their community, and 19% report excellent economic conditions in the country, compared to the community (7%) and country (5%) economic conditions seen for the full sample. Similarly, they report good conditions in their community (42%) more than the country (34%).
There is a stark difference when looking at adults who feel worse about their own finances. Only 3% of adults who report a “worse than expected” quality of financial life say their community economic conditions are excellent, and 1% say their country’s economic conditions are excellent, compared to 23% and 19% respectively for those who report a “better than expected” quality of financial life. Individual perceptions of macroeconomic sentiments are heavily influenced by how these respondents are feeling about their own financial lives.
Overall, adults view their personal finances most favorably, followed by the community and then the country’s economic conditions. We also find a positive correlation between personal finances, community economic sentiment, and country economic sentiment. In other words, those who feel more positively about their personal finances, community economic conditions, or country’s economic conditions are more likely to feel positively about all economic sentiments, and those who feel more negatively about one are more likely to feel negatively about all. These results resonate with other national surveys from recent years focused on household economic sentiment, which often appeared in the popular press under the headline of a “vibescession,” or a dynamic where individual feelings about their personal situation were out of step with their assessment of the national economy. The Federal Reserve’s 2023 Survey of Household Economic Decision making (SHED) showed that around 72% of respondents said that they were “doing at least okay” financially despite only 22% of respondents saying they believed the national economy was either “good” or “excellent.” More puzzling, as with our data, at the time they were asked national economic indicators suggested the US economy was experiencing a slowing of inflation, historically low unemployment, and strong economic growth. As noted, we do see in our data that respondents managing multigenerational caregiving responsibilities are much less likely to positively rate the quality of their financial life than other US adults, but this does not account for such a negative assessment of the national economic situation when indicators suggest otherwise. It is possible that, as respondents are more in touch with their own financial lives, they project negativity to wider economic conditions, but the ultimate source of the wide gap in economic sentiment remains uncertain.
Relationship Between Individual Quality of Financial Life and Generational Financial Outlooks
Feelings surrounding individual quality of financial life also have a great impact on how respondents feel about their own financial pressures relative to their parents’ generation and generation(s) following them. In general, adults in multigenerational households feel like their generation has it worse than both their parents’ generation and generation(s) following them. Opinions sway more negatively when compared to their parents’ generation. This could be because they have a firm understanding of the financial pressures their parents faced, while the financial pressures of future generations require a level of speculation, specifically for younger respondents.
When looking at how respondents feel about the financial pressures of their generation compared to those of their parents’ generation, 6% say theirs are much easier, 12% say theirs are somewhat easier, 15% say they are about the same, 29% say theirs are somewhat tougher, and 36% say theirs are much tougher. We can see that their feelings skew negatively toward their own generation’s financial pressures. Looking at the comparison to generation(s) after them, the findings are slightly different. While they are still more likely to say their own financial pressures are much (27%), or somewhat (21%) tougher, a higher percentage of respondents say they are much (8%) or somewhat (17%) easier. We also find that 6% say they are unsure about their financial pressures compared to generation(s) after them, compared to 3% who said they were unsure regarding their parents’ generation. Given that they have a more concrete understanding of the financial struggles their parents faced, it makes sense that a smaller percentage are unsure of how they compare to their own experiences.
Comparing these findings with respondents’ feelings about their current quality of financial life paints a more nuanced picture of what may be influencing their opinions. Thirty-one percent of respondents who report a better quality of financial life say their financial pressures are much (16%) or somewhat (15%) easier than their parents’ generation, compared to 10% of respondents who report a worse quality of financial life saying their financial pressures are much (3%) or somewhat (7%) easier. Respondents who report a worse quality of financial life are more likely to say their financial pressures are much (47%) or somewhat (29%) tougher than their parents’ generation, while those who report a better quality of financial life are less likely to say their financial pressures are much (23%) or somewhat (30%) tougher. About three in four (76%) of respondents who report a “worse than expected” quality of financial life think they have it worse financially than their parents’ generation compared to just over half (53%) of respondents who report a “better than expected” quality of financial life. While those who have a “better than expected” and “worse than expected” quality of financial life think their financial pressures are tougher than those of their parents’ generation, a lower quality of life indicates a higher likelihood of thinking they have it tougher than their parents.
There is a similar relationship between the current quality of their financial life and how they feel about the financial pressures of their generation compared to future generation(s). Respondents who self-report their current quality of financial life as “better than expected” are more likely to say their financial pressures are much (19%) or somewhat (19%) easier than future generation(s), compared to respondents who say their quality of financial life is “worse than expected” (much easier: 4%; somewhat easier: 16%). Adults in multigenerational households who report a current quality of financial life that is “worse than expected” are more likely to say their financial pressures are much (32%) or somewhat (20%) tougher than future generation(s). Those who report a “better than expected” quality of financial life are less likely to say their financial pressures are much (28%) or somewhat (16%) tougher.
There is a clear connection between quality of financial life and opinions of current financial pressures compared to other generations. Those who have a “better than expected” quality of financial life are less likely to think they have it worse than other generations and more likely to think they have it better. Those who have a “worse than expected” quality of financial life are more likely to think they have it worse than other generations and less likely to think they have it better. As we have shown that individual quality of financial life is tied to opinions of macroeconomic conditions, it makes sense that this belief spreads into generational opinions as well. If there is negative perception on a widespread scale, it often influences people to think they have it worse than others have had in the past, and those in the future will. Individuals make up generations and communities, and these generations and communities make up the country, so these ideas are often intertwined.
Respondents are less likely to say their current financial pressures are tougher than generation(s) after, which indicates an increasing downward expectation for financial well-being. While adults in multigenerational households still broadly think they have it tougher than the generation(s) after them, the fact that it is less skewed than for their parents’ generation indicates that fewer individuals think financial outlooks will be better in generations to come. Most adults in multigenerational households think their generation has it as bad as it will get but fewer are confident that future generations will not have it worse than they do now. Rising costs, increasing wealth and income inequality, and lack of social supports are just a few of the many reasons why future generations may have it worse than current ones.
The Impact of Financial Education
Respondents were asked if they had an opportunity to take financial education in a variety of settings and if they found this financial education useful. Respondents were able to share their experience with financial education in secondary school (middle, junior high, or high school), college or university, through employer-sponsored programs, one-on-one coaching or mentoring from a professional, a community organization, a government-affiliated entity or a self-guided course. In this analysis, we focus on respondents who took financial education in secondary school as more states continue to pass legislation requiring a personal finance course as a graduation requirement from high school.
Sixty-one percent of adults in multigenerational households report taking financial education in secondary school, and 67% of those who took it found the education useful (41% of sample). Fifteen percent of those who took it did not find the education useful (9% of sample) and 18% were not sure if it was useful (11% of sample). Those who took financial education in secondary school and found it useful show more positive outlooks on the previously analyzed sentiments. They have a higher quality of financial life, are more likely to think the economic conditions of their community and the country are better and are more likely to think their financial pressures are easier than both their parents’ generation and future generations.
Respondents who took financial education in secondary school and found it useful (25%) are more likely than those who took it but did not find it useful (8%), took it but weren’t sure if it was useful (7%) and those who did not take it (11%) to have a quality of financial life that is “better than expected”. They are over twice as likely as others to have a “better than expected” quality of financial life. While this provides evidence that there may be a causal link between finding financial education taken in secondary school useful and a higher quality of financial life, there could also be other omitted variables contributing to this finding. This could include things such as being in a well-funded school district that is able to offer personal finance courses and therefore has more resources to help students thrive in the future. Well-funded school districts are often a result of higher socioeconomic status, which can also contribute to individual quality of financial life. If a student had parents with high financial literacy, they may have been financially socialized through intergenerational knowledge transfer to take an offered personal finance course and absorb the information. Those adults could have better financial habits leading to a higher quality of financial life due to modeling what they learned at home and having well-resourced support systems, rather than the sole influence of the course. Students who were inclined to take a personal finance course, if it was not required by the district or state, may also be more invested in their finances in general—leading to a “better than expected” quality of financial life. While financial education itself can be a benefit to a person’s quality of financial life, it is just one piece of a wider ecosystem of financial well-being.
In addition to a higher quality of financial life, taking a personal finance course in secondary school and finding it useful is correlated with more positive macroeconomic sentiments. Forty-seven percent say the economic conditions of their community are excellent (12%) or good (35%), while 53% say they are fair (33%) or poor (20%). Those who did not take financial education in secondary school are more likely to express negative leaning sentiments on their community. Thirty-one percent of these respondents rate the current economic conditions of their community as excellent (5%) or good (26%), while 69% rate them as fair (41%) or poor (28%). While more than half of those who took a personal finance course in secondary school and found it useful say the economic conditions of their community are fair or poor, they say so at a rate that is 16 percentage points lower than those who did not take any financial education courses in secondary school.
When looking at how these respondents feel about the economic conditions of the country, there are continuing differences. Thirty-four percent of adults in multigenerational households who took a personal finance course in secondary school and found it useful rate the economic conditions of the country as excellent (8%) or good (26%), and 66% say the conditions are fair (34%) or poor (32%). Similar to the feelings about the economic conditions of their community, those who did not take a personal finance course at all in secondary school are more likely to view the economic conditions of the country negatively. Twenty percent of these respondents say the current economic conditions of the country are excellent (3%) or good (17%), and 80% say they are fair (35%) or poor (45%). The findings are very similar to those of their communities, but at a slightly smaller difference. Those who took financial education in secondary school and found it useful say the economic conditions of the country are fair or poor at a rate that is 14 percentage points lower than those who did not take them. Although financial education may act as a mediator for how adults in multigenerational households feel about the economic conditions of the community and country, respondents still lean negatively toward these sentiments.
There are also differences in how adults in multigenerational households compare their own financial pressures to those of their parents’ generation and future generations, but these differences are not as stark. We see more of a difference when comparing their financial pressures to their parents’ generation, with 23% of those who took financial education in secondary school and found it useful saying their pressures are much (10%) or somewhat (13%) easier than their parents’ generation, compared to 10% of respondents who did not take it at all (3% much easier; 7% somewhat easier). Similarly, respondents who did not take financial education in secondary school are more likely to say their financial pressures are much (39%) or somewhat (31%) tougher than their parents’ generation (70% aggregate), while 63% of those who took it and found it useful said their own financial pressures are much (36%) or somewhat (27%) tougher.
When comparing current financial pressures to future generations, Twenty-nine percent of adults in multigenerational households that took secondary-level financial education and found it useful, say the financial pressures they face now are much (11%) or somewhat (18%) easier than those of future generations, while 20% those who did not take such a course say their financial pressures are much (4%) or somewhat (16%) easier. On the other hand, 49% of respondents that took such a course and found it useful say their financial pressures are much (30%) or somewhat (19%) tougher than those of future generations. Forty-seven percent of those who did not take a financial education course in secondary school say their financial pressures are much (24%) or somewhat (23%) tougher than those of future generations. Financial education results in a higher likelihood of thinking current financial pressures are easier than their parents’ generation, but also a slightly higher likelihood of thinking theirs are tougher than future generations. This shows that respondents who took secondary-level financial education are more likely to think financial outlooks are trending upwards overtime, with them having it easier financially than their parents, but also that future generations may have it easier financially than they do.
Conclusion
We have shown how quality of financial life, macroeconomic sentiment, and generational financial outlooks are heavily intertwined. Those who feel more positively about one aspect are more likely to feel more positively about others, and the same can be said for those who feel more negatively about one aspect. It is also clear that taking secondary-level financial education and finding it useful is tied to more positive beliefs on a wider scale. Financial education is one way that states, educators and advocates can aid in the advancement of financial well-being.
Financial education is one piece of a much larger puzzle of financial well-being, which is why NEFE developed the Personal Finance Ecosystem (PFE). The PFE recognizes that financial education is a wonderful tool for advancing financial well-being, but there are many other factors at play. Financial access, foundational factors, and social and material supports are just a few of the additional aspects of a person’s financial well-being, and many of these things can be playing a role behind the scenes of our data. The link between financial education and positive financial outlooks is strong, but since the ecosystem is heavily intertwined, there may be other factors influencing these findings. We did not control for any possible omitted variables, and some of these factors may include socioeconomic status, geographic location, family socialization, and values or beliefs.
One factor in our ecosystem that we can directly influence is access to—and quality of—financial education. As more states pass K-12 financial education high school graduation requirements, proper implementation through best practices will ensure more students are finding this education useful. As states and districts develop curricula, it is crucial to understand that not every adult will fall into a traditional household. Those who are preparing students for adulthood through financial education must consider non-traditional caregiving responsibilities to increase the likelihood that these individuals can thrive in their given circumstances and achieve higher levels of financial well-being.