All generations have made headway when it comes to retirement savings, but Generation X is the weakest generation when it comes to finances, especially money management.

What makes a generation prepared for retirement is how it handles the basic foundational issues that cause the most financial stress, said Liz Davidson, founder and CEO of Financial Finesse in El Segundo, Calif. Those include how they handle cash flow—do they spend more than they earn each month?—paying off credit card balances in full each month and having an emergency fund.

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