In a surprising turn of events, boomers and millennials are finding common ground when it comes to their financial situations. According to a report from H&R Block, both generations in the middle class share strikingly similar views and worries about money.

The report, based on data collected from 10.5 million Americans who filed their taxes with H&R Block since 2000, reveals that nearly half of the tax filers, approximately 4.6 million individuals, reported an Adjusted Gross Income between $45,000 and $145,000, which H&R Block considers middle income. Interestingly, the highest average ages among these middle-class individuals were 32 for millennials and 62 for boomers, highlighting the overlap between the two generations.

The large number of middle-class Americans in these income brackets can be attributed to the fact that boomers and millennials are the largest generations, compared to Gen X and Gen Z who are relatively smaller in size.

One notable similarity between these two generations is their marital status. A significant portion of middle-class Americans, both millennials (43%) and boomers (50%), are either unmarried or no longer married. This data correlates with millennials' inclination to delay marriage or forego it altogether, as well as the fact that marriage often leads individuals out of the middle class.

Furthermore, the report found that both millennials and boomers display similar concerns regarding their income and cost of living. Kathy Pickering, Chief Tax Officer at H&R Block, explains that worries about inflation and its impact on income growth are a "very real fear" shared by both generations.

Although the majority of these middle-class households make under $80,000, they are worried about inflation affecting their paychecks, despite experiencing income gains that surpass expected growth forecasts. Only half of middle-class millennials expressed satisfaction with their pay growth, while 65% of middle-class boomers reported dissatisfaction. Additionally, 42% of boomers feel worse off financially this year compared to the previous year.

While their financial concerns align, millennials and boomers are responding differently to their money worries, reflecting their respective life stages. Millennials, feeling financially insecure, are more likely to work multiple jobs to make ends meet, turning to gig work at a higher rate than older generations. On the other hand, boomers, although some are retired, are still willing to work full-time or take on part-time gigs and side hustles to earn more money.

The report also highlights that middle-income boomers tend to focus on saving, investing, and paying off debt, rather than making large purchases. Many own homes, providing a sense of security. In contrast, millennials are more likely to be renting, with the high cost of city living making homeownership a challenging goal for the generation.

Both millennials and boomers share deep concerns about inflation, with 62% of millennials feeling extremely concerned and 70% of boomers expecting inflation to continue rising. Despite the economic advantages brought by inflation, the middle class still feels financially strained due to the tight housing and job markets. The middle class has faced challenges, even after saving significant amounts during the early stages of the pandemic.

Interestingly, middle-class millennials remain optimistic, with 67% believing that their income will increase in the coming year. On the other hand, middle-class boomers are less optimistic, with 66% believing that their financial situation will remain the same or worsen.

As boomers and millennials find themselves in similar financial situations, their shared concerns and hopes for improved income demonstrate the need for continued dialogue and support for these generations facing economic challenges.

In conclusion, this H&R Block report sheds light on the convergence of financial worries between middle-class boomers and millennials, illustrating that their differences go beyond generational labels.