From Then To Now – Forbes Advisor

You probably think about your money differently than your grandparents did.

This makes sense.

Between couples having separate bank accounts, prenups not being just for the ultra-wealthy, and fintech apps making it easier to invest, folks today have a much different relationship with their personal finances than generations of old.

And as equitable workspaces push fair wages, more diverse opportunities and better financial literacy, so goes how we approach our wealth.

In this story, we’ll dive into how today’s money mindset of American consumers is shaped by technology, education and legal reforms, with insights into how we’ve become more transparent about finances than ever before.

More Couples Are Saying “I Don’t” To Sole Joint Bank Accounts

Whether it’s marriage or just a committed relationship (sans nuptial contracts), couples were more likely to mingle their finances in the past.

Joint accounts are becoming less common among couples, according to Experian data. In 2014, the average couple had about 1.47 joint credit accounts, but by 2023, that number dropped to 1.2.

This move reflects changing attitudes about financial independence and personal control over money management, which spans issues from dual-income households to patriarchal norms.

As the gender pay gap narrows, it’s not surprising women want more control over their finances.

John Owens, executive vice president at Monterey Financial Preferred, a financial services company, says that more couples are opting for a hybrid approach, where they have a mix of individual and shared accounts.

Separate accounts offer more financial agency; however, sharing an account often has benefits. For starters, people with joint accounts tend to have higher credit scores, with an average FICO score of 718 as of June 2023, compared to 706 for those without one.

Joint accounts can also make managing big financial moves easier, such as qualifying for a mortgage or personal loan.

Prenuptial Agreements: More Common or Still Taboo?

Prenups are becoming more popular among all income levels, showing a marked pivot in how we approach marriage and finances.

“It can be said that the stigma that prenups used to carry is becoming a thing of the past,” says Paul Koenigsberg, managing partner at Koenigsberg & Associates in New York. “Millennial and Gen Z couples now do it on principle where in the past, prenups would have been exceptional arrangements on the basis of a significant wealth discrepancy between the two parties.”

Some 50% of U.S. adults now support prenuptial agreements, a jump from 42% in 2022, according to a Harris Poll survey with Axios. About 20% of married couples already have prenups, and younger generations, especially Gen Z and Millennials, are leading the way—over 40% signing prenups before marriage.

Americans are getting married later, often bringing individual assets or debt into relationships, which could be nudging more people toward signing pre-marriage contracts. Census data shows that in 1990, the median age at first marriage for women was 24, and for men, it was 26; in contrast, the median age in 2023 for women was 28 and men was 30.

More equitable prosperity also plays a part. American women have made major strides in the labor market over the past four decades, gaining financial independence and more choices than ever before. In 1970, nearly half of women aged 30 to 50 didn’t earn their own income—today, it’s just 25%.

Median wages for women in this age group have risen from $19,000 to $30,000, making marriage less of an economic requirement. The result? Women are rewriting the rules on work and financial freedom.

“I think this points to a larger shift from home economics to individual economics,” Koenigsberg says. “As such, things like an increase in prenups can be seen as mere symptoms of the individualization of financial management at a much granular level.”

Access to Fintech and DIY Investing

Like married couples, a new generation is approaching wealth-building with a fresh mindset. While stocks and bonds were once the realm of the wealthy, they’re now seen as tools for financial growth by a younger generation.

The proportion of stocks directly held by households under 35 has significantly increased, rising from 7% in 2013 to 23% in 2022.

Fintech apps are changing how younger people invest. Justin Kennedy, managing partner leading investment activities at Grass River Real Estate Development, says young millennials and Gen Z tend to trust big companies less and care more about where their money goes, like avoiding oil or war-related industries. They’re also using new apps to invest in things like real estate with less money.

“Why trust an opaque organization, where you are paying high fees, and investing in industries which may not align with your values,” Kennedy says. “Additionally, the rise of new investment opportunities is showing the younger generations that the traditional means of investing may not be the only way. For instance with apps like Fundrise, individuals can now invest in real estate with the need of massive amounts of upfront capital.”

Gatekeeping in the financial world is breaking down thanks to innovations like no-fee trading apps and access to online financial resources.

However, some financial experts warn that amateur investors could end up in financial trouble without professional guidance.

“We tend to see a serious risk of overconfidence, which could lead to poor financial decisions,” says Steven Woods, CEO of Stirlingshire, an investment platform. “And by incorporating gamification strategies, many fintech companies have turned themselves into something that more resembles a casino to optimize their revenue and induce trading.”

Woods says that while financial information is more readily available than ever, if people don’t take the opportunity to learn about investing, they end up at a severe disadvantage.

Financial literacy is a major hurdle for young adults today. In the U.S., just 18.3% of people aged 18-34 can correctly answer basic financial questions, according to data from the Global Financial Literacy Excellence Center (GFLEC).

“The key going forward will be finding the right balance—leveraging technology to enhance, not replace, the crucial human element of financial planning,” Woods says.

Talking About Salary: From Taboo to Transparency

As today’s generation increasingly turns to fintech platforms to invest, they also bring a fresh approach to salary discussions.

We’ve come a long way in communicating about salary fairness since the days of Lilly Ledbetter. In 1998, Ledbetter found an anonymous note in her mailbox revealing she was being paid nearly 40% less than her male colleagues at Goodyear Tire. The note listed her salary alongside those of three male managers, confirming the disparity. This discovery devastated her but also sparked a legal battle that led to the Lilly Ledbetter Fair Pay Act of 2009.

In the same way, laws like Colorado’s Equal Pay for Equal Work Act (2019) and New York’s Salary Transparency Law support this shift by requiring companies to disclose salary ranges in job postings.

The trend toward salary transparency has also been shaped by earlier initiatives like the Equal Employment Opportunity Commission’s (EEOC) requirement in 2016 for employers to report pay data through Component 2 in their EEO-1 filings.

This evolution encourages more open conversations around wages and helps close pay gaps. Platforms like Glassdoor and LinkedIn have also made salary sharing easier, empowering employees to ask about compensation without hesitation.

Mabel Oza, an adjunct professor in the Department of Finance at the University of Illinois Chicago and founder of the personal financing app FatFIRESocial, says that salary transparency has made the job search process more equitable.

“Early in my career, it was normal for recruiters to ask what you’re making, and for years it hurt me,” Oza says. “I was a copywriter making $35,000 out of college. I wasn’t a great negotiator at the time, and when I learned coding and was doing Java development, I was making $50,000. I thought I was making bank because I had a huge jump, but I was oblivious to what people that do the same work as me should be making.”

Discussing pay isn’t just about asking for a raise—it’s about understanding and challenging a company’s pay practices for fairness.

According to the National Women’s Law Center and the World Economic Forum, salary transparency is essential for closing wage gaps, especially for women and historically marginalized communities.

Looking Forward

Today’s money mindset is all about individual control, tech empowerment and transparency. Younger generations, like millennials and Gen Z, are using tools like fintech to take charge of their finances, investing and learning more than ever.

We’re also seeing open conversations about pay, thanks to platforms like LinkedIn and laws pushing salary transparency.

But with all this tech, experts say financial literacy still matters.

As laws, culture, and tech evolve, the way we handle money will keep changing in the next 10, 20, and 30 years—making it even more crucial to stay informed and empowered.