Generational Differences in Spending, Investment Behavior, and Financial Technology Adoption: A Systematic Literature Review

Abstract

Aims: This study systematically examines and synthesizes existing literature on generational differences in spending behavior, investment decision-making, and financial technology adoption among Baby Boomers, Generation X, and Millennials. It explores variations in discretionary versus essential spending, differences in risk tolerance influencing investment strategies, and patterns of financial tool usage across cohorts. Study Design: A qualitative systematic literature review design was employed using a structured screening and thematic synthesis framework. Place and Duration of Study: This review encompasses studies conducted across various global regions and was completed over 3 months from December 2025 to February 2026. Methodology: This study employs a systematic literature review of peer-reviewed studies published between 2016 and 2026, retrieved from Scopus-indexed journals, ScienceDirect, JSTOR, and Google Scholar. Following PRISMA 2020 guidelines, relevant articles were screened and synthesized thematically to examine generational differences in spending behavior, investment behavior and risk tolerance, and financial technology adoption. Results: Evidence reveals patterned generational variation; however, differences are mediated by financial literacy, macroeconomic exposure, and lifecycle constraints rather than fixed cohort identities. Baby Boomers prioritize capital preservation and essential expenditure stability, Generation X demonstrates diversified risk management shaped by midlife obligations, and Millennials exhibit higher digital engagement and openness to growth-oriented and alternative investments. Financial tool adoption—including mobile banking, robo-advisors, and online trading platforms—varies in depth and complexity across cohorts, reflecting technological familiarity and structural financial conditions. Conclusion: The findings indicate that generational financial behavior is shaped by the interaction of lifecycle stage, socio-economic context, and technological exposure. Differences in spending allocation, investment risk tolerance, and financial technology adoption reflect broader structural and cognitive influences across cohorts. These insights highlight the need for cohort-sensitive financial literacy initiatives, inclusive financial products, and adaptive regulatory frameworks to promote sustainable financial well-being across age groups.