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10 Things Gen Xers Should Stop Spending On Now
Eliminating or reducing these discretionary costs can free up cash for debt repayment, retirement savings or other goals
7-minute read
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Key takeaways
- Gen Xers spend more and have the highest median non-mortgage debt than any other age group.
- Reducing nonessential expenses can help members of Generation X avoid unnecessary spending and save more for retirement.
- Major lifestyle upgrades in your 40s or 50s, such as buying a bigger home or a luxury car, can strain your finances.
Generation X has been characterized by a variety of labels over the years, from slackers and latchkey kids to the MTV generation. Now, it appears there’s another that can be added to the list: big spenders.
Gen Xers spend more than any other age group, with average annual household expenditures hitting nearly $96,000 in 2023, according to the latest available data from the Bureau of Labor Statistics (BLS). They also have the highest median nonmortgage debt at $24,723, according to a LendingTree analysis of 400,000 credit reports.
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Much of that spending has to do with the point in life those born between 1965 and 1980 are at. “It’s an expensive life stage,” says Linda Grizely, a certified financial planner and financial wellness speaker who is a Gen Xer. “We’re helping our kids a lot longer than other generations did because everything is more expensive. We’re also supporting parents.”
But it’s more than just the demands of being in the sandwich generation that is pushing Gen Xers’ budgets to the limit. Financial advisers say they are seeing many Gen X clients open their wallets for a host of discretionary expenses.
That could be one reason why many Gen Xers are falling behind financially. Only 37 percent say they have achieved their financial goals, according to a 2025 survey by the CFP Board of Standards.
Whether you’re looking to free up cash to pay off debt, build an emergency fund or save more for retirement, financial pros say Gen Xers should stop spending on these 10 things.
Unlimited financial support for adult children
A 2025 AARP survey of parents age 45 and older found that 75 percent are supporting one or more adult children and giving them, on average, nearly $7,000 a year. A separate study by Bankrate found that 69 percent of Gen X parents say that they are currently sacrificing or have made sacrifices to provide assistance to their adult kids.
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“That truly is the biggest spending item I see” among Gen X clients, says Liz Windisch, a senior wealth adviser with Maia Wealth in Denver. “It’s really harmful.”
That doesn’t necessarily mean you should cut off your kids entirely, but parents should set limits, Windisch says. She recommends having a conversation with your adult children about what you will and will not pay for in the near term and an agreed-upon timeframe for ending some or all of your support.
Bigger homes
It’s common for Gen Xers in their peak earning years to want to upgrade to what Matt Chancey, founder of Tax Alpha Companies in Tampa, Florida, calls the “we made it house.” However, he cautions against taking on the cost of not only a bigger mortgage but also higher property taxes and maintenance expenses in your 40s or 50s.
“The wealth that should have compounded in a retirement account gets buried in a house that’s harder to sell later,” Chancy says. “Don’t move up if you haven’t caught up.”
The same goes for making major renovations to your current home. “Clients regularly finance $60,000 or $80,000 kitchen remodels on home equity lines at 8 or 9 percent,” says Jeff Judge, a certified financial planner with Chesapeake Financial Planners in Forest Hill, Maryland. “Those renovations rarely return dollar-for-dollar at sale.” And the debt carries a monthly cost at a time when Gen Xers should be working to reduce fixed expenses ahead of retirement, he says.
Vacation homes
Whether it’s a condo at the beach or a cabin in the woods, buying a second home can create a big drain on Gen Xers’ finances. There are several costs to consider, from insurance and property taxes to maintenance and homeowners association fees.
“Unless you spend three-plus months of the year in the second home, I would consider just renting instead of buying,” says Crystal McKeon, a certified financial planner with TSA Wealth Management in Houston.
Luxury vehicles
Grizely says she often sees Gen X clients in their prime earning years opt for more expensive cars. “Sometimes, it’s a symbol of their success,” she says. But those status symbols can come with a hefty monthly price tag when financed with a loan.
Gen Xers with auto loans have the highest monthly payments — $594 — of any age group, according to a 2026 LendingTree study. They could reduce that financial burden by buying a used vehicle, choosing an economy brand or, perhaps most efficiently, getting more years out of the car they already have.
Lavish vacations
Gen Xers ages 50 to 59 expect to spend an average of $6,231 on travel in 2026, up from $5,991 in 2025, according to AARP’s annual Travel Trends study. “Travel creates wonderful memories, but financing vacations with high-interest credit cards often turns a great experience into a long-term financial burden,” says Michelle Crumm, founder of Belle Eve Financial in Ann Arbor, Michigan.
You don’t have to forgo travel altogether, but you can avoid putting it on a credit card with some planning. Grizely recommends opening a savings account specifically for travel and depositing an amount that fits within your budget. The goal is to travel without taking on debt, which might mean choosing a more affordable vacation over a once-in-a-lifetime trip.
Swimming pools
The popularity of backyard pools surged during the COVID-19 pandemic as people were forced to stay home, according to Realtor.com. Although the boom in pool construction has cooled, Michael Hardy, founder of Ocean Wealth Group in Williamsville, New York, says many of his Gen X clients have been paying big bucks to build in-ground pools, often taking out loans to finance them. “It’s like taking out a mini mortgage,” he says.
That means more debt and less money for retirement savings. “It comes with a sacrifice,” Hardy says. Plus, there are ongoing maintenance costs, such as cleaning, chemicals and repairs, with pool owners paying, on average, around $500 for monthly pool service during the summer months, according to Fixr, a website that provides cost guides and comparisons for remodeling projects.
Food delivery and takeout
It’s easy for Gen Xers who are busy juggling careers and caring for both children and aging parents to justify ordering takeout or delivery, but it’s a costly expense. Hardy says he recently used DoorDash to order Subway sandwiches for himself and his son. “It was very convenient to use,” he says — but it cost him $48.
He’s not alone: Nearly a third of Gen Xers order delivery at least once a week, according to a recent LendingTree study. The report also found that, on average, ordering delivery costs nearly 80 percent more than picking up the same meal. “These small payments of convenience add up over time,” Hardy says.
For busy Gen Xers reluctant to cook at home, an affordably priced meal delivery service such as Factor, Home Chef or Tempo that offers prepared meals, could be a lower-cost alternative.
Unused subscriptions
From gym memberships to streaming services, U.S. adults spend on average a whopping $1,332 a year on subscriptions, with $252 going to ones that aren’t used, according to a CNET survey. Gen Xers are as guilty as any other generation of letting this money leak persist.
“Subscriptions are the cockroaches of personal finance,” Judge says. “They survive every budget review because no single one feels big enough to cut.” But taking the time to cancel services that you aren’t using can pay off, especially for Gen Xers who could use the extra cash to beef up their retirement savings.
Pet pampering
When it comes to pet care, Gen Xers outspend boomers by more than 30 percent, according to BLS data. “Pets are family, but I increasingly see clients spending significant amounts on day care, subscriptions, accessories, premium services and elective expenses, while retirement savings remain underfunded,” Crumm says. “Responsible pet ownership is important, but pet spending should still fit within an overall financial plan.”
To keep the cost of caring for your pet in check, determine what you can afford annually without going into debt or sacrificing other financial goals. Also, look for ways to save money, such as taking advantage of pet retailers’ loyalty programs and joining your local “Buy Nothing” group, where fellow pet owners in your area may be giving away pet beds, crates, toys or other items they no longer need.
Bigger-than-necessary tax bills
Taxes are inevitable, but you can take steps to reduce what you pay to Uncle Sam, allowing you to keep more money in your pocket, Hardy says.
In addition to making pretax contributions to a retirement account, such as a 401(k), through payroll deductions, you may be able to lower your taxable income by contributing to a health savings account (HSA). Because earnings in the account grow tax-free and withdrawals for qualified medical expenses aren’t taxed, an HSA can be “a very powerful place for people to contribute money,” Hardy says.
In 2026, you can contribute up to $4,400 to an HSA if you have individual health insurance coverage with a deductible of at least $1,700 or up to $8,750 if you have family coverage with a deductible of at least $3,400. Adults 55 or older can contribute an additional $1,000.
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