Battered by tariffs, inflation and economic uncertainty, Gen X is facing the perfect financial storm.
Caught between supporting adult children and aging parents, navigating a shifting job market and dealing with rising costs as retirement safety nets shrink, many Gen Xers are making money moves that could be costlier than ever.
Read Next: Trump Wants To Replace Income Taxes With Tariffs: 2 Impacts on the Middle Class
Try This: These 10 Used Cars Will Last Longer Than an Average New Vehicle
Here are four mistakes Gen Xers are making with their money in the Trump economy.
Cetin Duransoy, the U.S. CEO at Raisin, a no-fee, online savings platform, said one common financial mistake Gen Xers are making is keeping too much cash in their checking accounts.
“Most of us have our paychecks sent to our checking account via direct deposit, and with good reason,” Duransoy said. “It’s convenient and a central clearing house we use to pay bills via automatic payments.”
He explained, “But many of us have extra cash sitting here, not offering any meaningful return. We may not be giving this a second thought, but in today’s rate environment, there’s a definite cost to our bottom line.”
Duransoy said Gen Xers should consider options other than traditional checking and savings accounts to protect their financial future. The average savings account interest rate as of February 2024 was under 0.5% — and checking accounts typically earn even less, if they earn interest at all. This will not keep up with inflation, Duransoy pointed out.
“By not taking advantage of high-yield savings accounts, Gen Xers are leaving money on the table,” he said. “They should look to products like CDs and high-yield savings accounts with nation-leading rates to enjoy the benefits of compounding interest.”
Be Aware: Trump Isn’t Ruling Out a Recession This Year — What Could That Mean for Your Wallet?
Many Gen Xers pride themselves on being self-reliant. However, that DIY mindset can become a blind spot in a rapidly changing economy. By downplaying industry shifts and delaying skill upgrades, they risk losing income and long-term security.
“Putting off learning and developing new skills or just making changes to your job could leave some Gen Xers stuck,” said Harry Morton, founder of Lower Street, a podcast production and marketing firm. “Many now face unemployment and struggle to re-enter a job market that demands digital proficiency and adaptability.”
Gen Xers should prioritize upskilling in areas like digital tools, content creation and project management through low-cost online courses to stay relevant and create new income opportunities.