4 ‘Necessities’ Boomers Are Spending Money on That Could Harm Their Finances

Gabrielle Olya

Sun, May 18, 2025, 10:01 AM 3 min read

When determining a budget, it’s important to have a firm grasp on what is a “necessity” and what is a discretionary expense. But sometimes the distinctions aren’t so clear cut. Qualifying discretionary expenses as necessities can mean overspending on these items and utilizing money that’s better off being put toward short- or long-term savings goals or debt repayment. This can be especially harmful for boomers, many of whom are retired and living on a fixed income.

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“Most Americans, including boomers, likely know what constitutes a traditional ‘necessity,’ but it’s human nature to want to spend on things that bring us joy, regardless of whether we can live with or without it,” said Courtney Alev, consumer financial advocate at Credit Karma. “The more important decision for boomers to weigh is how their nonessential spending habits impact their budgets and ability to stay on top of their financial obligations.”

Here’s a look at the nonessential expenses boomers are most likely to consider necessities.

A recent Credit Karma study asked Americans of all ages to share the top nonessential items and services that they consider to be necessities. Among boomers, the top choices were streaming services like Netflix and Hulu (29%), travel (23%), dining out (23%) and skin care and beauty products (22%).

“People are choosing to find comfort in spending on the things they enjoy, even amid economic uncertainty,” Alev said. “However, it’s important to audit your finances to be prepared in case of an unexpected expense or income change.”

She recommended boomers audit their nonessential spending to find ways to cut costs.

“When deciding where to cut back, prioritize what brings you the most joy and value,” Alev said. “For instance, if taking a vacation is how you want to treat yourself this summer, consider limiting how much you dine out or spend on skin care so you can allocate that spend toward an emergency savings fund instead. That way, you still get to treat yourself with summer travel while also building a financial cushion in case of an unexpected event or expense.”

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Discretionary spending should be part of a boomer’s budget — they just shouldn’t let it take precedence over other financial priorities.