5 financial tips to learn from Gen Z
Generation Z, iGen, post-millennials, homeland generation. Whatever you choose to call them, they’re the millennial generation’s kid brothers and sisters, usually classified as those born between 1995 and the late 2000s. And be it the 2008 recession they experienced as children or the questionable job security of today’s market, Gen Z has a few financial habits that every generation should take notice of.
Spend money on experiences, not things.
A large differentiator between Gen Z and their older relatives is their spending habits. Gen Z is spending much less money on material items like clothing or cars, and much more of their cash on experiences. Whether it was the aftershock of the 2008 recession, or the desire to flaunt their latest adventure on Instagram, Gen Z is reminding us that memories last forever, while things can come and go.
Start saving early. Really early.
We’ve all heard it before, it’s never too early to start saving. But Gen Z may be the only generation who is actually acting on that advice. Research shows that many Gen Zers are opening savings accounts before their 10th birthdays and contributing to RRSPs by the time they’re 20. So the next time you hear that advice, take a page from a Gen Z’s notebook and take action.
Making choices and sacrifices is a part of life.
We all have to make choices when it comes to where we spend our money, especially when it comes to fun. Because of the 2008 recession, many Gen Zers learned about making choices and sacrifices at a young age. But from a dark few years may have come some excellent financial habits. Gen Z has been labelled “the most fiscally conservative generation” in years. It’s a title that’s well earned due to this generation’s tendency to be quite frugal when it comes to shelling out their funds, especially for things that aren’t necessities.
Create a stable financial plan.
Blame it on rising tuition prices or the tough job market, but Gen Z are hardcore financial planners. With much of this age demographic needing to save up a hefty stack of cash for post-secondary education, financial planning is starting at a much earlier age than ever before. Generation Z is preparing their future finances even before millennials have begun to consider it.
Choose utility and quality over trendy name brands.
Even though their parents, Gen X, exhibited some of the highest levels of brand loyalty in history, Gen Z isn’t as easily impressed. Gen Zers tend to prefer good quality and utility over recognizable brand logos. Growing up in the tech age where dial-up internet and snail mail were things of the past, this age demographic values quality and speed over price or branding. Gen Z expects things to work quickly and easily—how cool they look using it comes second.