financial advice

Economics can be complicated, but there's one simple truth that's undeniable—today's financial landscape looks vastly different than it used to. Not only has the economy shifted in ways that make basic living more expensive, but the way money even works has changed a lot in just one generation.

Cash is out. Crypto is in (maybe, sometimes, depending on who you ask), and credit cards have become the standard form of payment for everyone. No one balances a checkbook anymore, and young people don't even know what that means. Sewing your own clothes used to be a way to save money, but now the cost of patterns and fabric have made sewing a somewhat expensive hobby, not a frugal hack.

A lot of the financial wisdom previous generations held dear simply doesn't apply anymore, as evidenced by people's responses to a question, "What financial advice from our parents' generation is officially dead?"

Here were some of the most common responses:

1. Get a college degree because it'll guarantee you a good job

"My parents didn’t say this but plenty in their generation did: “It doesn’t matter what your degree is in, just get a degree and there will be plenty of jobs available when you graduate.”

"The Millennial experience was being told we have to go to college; find something you enjoy doing and expect jobs in it; don’t worry about loans, there’s plenty of money out there. And then being yelled at and mocked when we come out with debt, dumb degrees and shitty jobs."

"My parents told me to just get a college degree and not worry about finding the perfect major. For them, just having a college degree opened doors. My advice to my son will be to be very intentional in the degree he chooses. Today you need to make sure your college degree will lead to employment."

A college diploma isn't the golden ticket it used to be. Photo credit: Canva

Current reality: With the cost of college tuition skyrocketing over the past few decades and wages not keeping up with cost of living expenses, "college will guarantee financial comfort" simply isn't true anymore. A college degree might result in a well-paying job, but it might not. Indeed reports that Bureau of Labor Statistics data shows that "on average, those with four-year degrees still earn more than their trade school-educated counterparts," but with trade jobs being in high demand and some of them earning high salaries, college isn't necessarily the best path to financial success for everyone.

2. Keep a stash of cash under your mattress or in a shoebox

"The old classic 'shoebox under the bed' has been dead for a while, but people still do it. If you want to keep a couple hundred bucks in cash for an emergency, knock yourself out.

But my mother in law has like 20k stashed in my wife's childhood room and has had it there for years and years. Absolutely kills me but she won't even consider any other options."

"I had a friend who had $15k in cash stashed in her house, and then she got robbed. Of course, the thieves found the cash. Guess what homeowners' insurance doesn't reimburse you for when your house gets robbed? They paid her back $1000 of the $15k and that was it."

People. used to keep money under their mattress "just in case." That's not really the best advice these days. Photo credit: Canva

"Back when I was doing finance at a car dealership I had a couple come into my office, finish all the paperwork, and then set $27,000 in a plastic shopping bag on my desk. I about crapped my pants. They had been carrying this bag of money throughout the sales process. I advised them to never do that again. They just hated banks."

"That 20k invested in an S&P index fund at a yearly average return of 10% would be $134,550.00 after 20 years. Left in a shoebox it’s…. 20k."

Current reality: A federally-insured bank is the safest place to keep your money. The need for actual cash has become less and less relevant as credit and debit cards are accepted almost everywhere, and keeping a large amount of cash around is risky. If cash is stolen, there's nothing you can do about it. If someone steals from your bank account, there are protections in place. Plus, keeping lots of liquid cash means missing out on investment returns.

im rich cash money GIF Giphy

3. Be loyal to your company—it'll pay off

"'Loyalty pays off in the end' and 'Don’t change workplaces; try to stay at one place for your entire career' also 'Only change positions if it’s a vertical move. Don’t change positions if it’s a lateral move.' None of this is true any longer."

"A lot of people believed this at my last job. So much so that many stayed on for 20+ years. Earlier this year, this group became known as ‘highly tenured’ and was offered a voluntary retirement package. In many individual instances (such as mine) it wasn’t exactly ‘voluntary’. Maybe loyalty meant something at one time but definitely not anymore!"

"'Stick it out and put in your time' at a job you hate. The implication being, of course, that if you work hard for an employer and stay the course, you’ll be better for it. Those days are over.

Company loyalty doesn't pay like it used to. Giphy

Current reality: Millennials and Gen Z have gained a reputation for "job hopping," whereas previous generations were rewarded by staying with the same company long-term. But even in 2014, Forbes reported that “staying employed at the same company for over two years on average is going to make you earn less over your lifetime by about 50% or more.” Current wisdom says that job hopping will help you earn more.

4. You shouldn't be living with your parents after college

"I feel like the conventional wisdom about moving out on your own has changed since I was a kid. When I was growing up it was understood if you were still living at home past your early 20s/college graduation that meant you were failing at life. These days I know people in their 40s still living at home because they can't afford to move out in today's environment."

"Yup. I know a few people who have adult kids living with them because they can’t afford to live on their own after college. Rentals in my state are absolutely insane, and when you combine that with college loan repayments? Forget it."

"As someone who is living at home in her thirties the stigma has dropped like a rock since COVID. I was given more shit for living at home at 22 than I was at 32. My parents had a car accident this year and the doctors were over the moon there was an adult kid at home to sort everything out."

"That's one practice I am grateful my immigrant parents never assimilated, and the fact I have a good relationship with them. Their was no expectation to move out until I was engaged / married. Multi-generation households make so much sense when it comes to saving money and pooled resources."

Lots of adults are living at thome after college. Giphy

Current reality: According to data from Sallie Mae, 64% of college grads are still living with their parents within the first two years of graduation, and 35% are still at home between three and five years post-grad. Living at home has become a financially wise and socially acceptable decision—it no longer means you're a lazy loser without the ability to support yourself.

5. Stay away from stocks (or even 401Ks)

"The advice from my depression-era parents. Stay away from stocks, they will always crash and you will lose your shirt. Guaranteed."

"My boomer mother: 'Putting your money in a 401k is gambling. You might as well take it to the casino or throw it away.'"

"My grandmother refused to try to understand why we had 401ks that were invested in stocks. 'All those Wall Street crooks do is steal your money!' She also couldn't understand why we didn't just keep all our money in a savings account in the bank, even when we explained that our bank savings account was only giving us .03% interest."

"That was also the advice I got from basically all my coworkers when I first started work after college in 2009 regarding a 401k. I had enough sense and luck to ignore them and still contribute, but I did put less in than I could have. I don't think I would have been able to retire yet, but would have been much closer than I am now."

Investing for the future looks a bit different now than it did a couple of generations ago. Photo credit: Canva

Current reality: Some people who advise against investing in the market came from the Great Depression or felt the sting of some other major downswings in the stock market during their lives. For sure, all kinds of investments are risky to varying degrees, but in the absence of pensions, if you ever want to retire, investing is pretty much the only way to do it. The stock market isn't the only way, of course, but it does have an average 10% return overall over the past century. And 401Ks aren't necessarily tied to the stock market; there are lots of safer ways to invest your retirement funds these days.

One commenter wrote of our elders' financial advice that's aged like milk, "Almost all of it. Because the world their advice is based in no longer exists." That's really the crux of it. We can look to our parents and grandparents for all kinds of wisdom born of experience, but when it comes to financial advice, best to look to the experts who have a better understanding of our current economic landscape.