Sun. Nov 27th, 2022

Six Financial Management Lessons We Can All Learn from Gen Z

Parting your hair down the middle? In. Rocking skinny jeans? Out. 

As younger generations often do, Gen Z is taking the world by storm and setting trends (or bringing back old ones, like Y2K fashion). But did you know we can all learn some tricks for managing our finances from this generation? Our financial education officer, Julie Beckham, explained to us that these six Gen Z financial trends are also actionable takeaways that can benefit everyone. Take advantage of access to information

Gen Z-ers were born into the prime of the internet and make the most of the abundance of resources available to them. They tend to be free-thinking and self-taught— from watching makeup tutorials or how to change a tire on YouTube to learning how to manage money through a podcast

They absorb information from non-traditional sources like celebrities, influencers and social media. But many in this generation have also used more traditional learning methods, like taking personal finance classes.Double-check that your sources are reliable 

Fact-checking can be a struggle for all of us. A downside of having easy access to information is the probability of stumbling upon mis- or disinformation. The sad reality is that scammers are taking advantage of people and becoming more sophisticated as time goes on, making “fraud radar” a critical tool for all of us to have.

PRO TIPS for avoiding scams and financial misinformation:

  • If it sounds too good to be true, it probably is!
  • Crowd mentality is loud, but not always accurate.
  • Before making an emotionally charged financial choice, take a step back and think.
  • Be media savvy and research before spending.
  • Stay grounded in financial realities.

Gen Z is tuned in to finances… and reality. They are acutely aware (and frankly, afraid) of debt and the consequences that come with it. This generation witnessed how student loans have impacted Gen X-ers and millennials. They understand that they may not get their dream job right out of college or may need to live at home during transitional periods. 2020 taught us all that “unprecedented times” can happen, so they’ve come to expect the unexpected.

Will Student Loans Impact Your Plans to Buy a Home? Align your spending with your values

Gen Z-ers have been influenced by world events during their formative years and are ready to tackle hard questions and enact change. To set change in motion, many Gen Z-ers are mindful to support businesses with similar values to their own. They cash out on things and experiences that feel authentic to them, including social justice organizations or other charitable causes.

Are Millennials Managing Money Differently?Make banking convenient to fit your lifestyle

Online, mobile and virtual banking is the name of the game for this crowd. Virtual tellers offer convenient, electronic banking services aligned with this generation. Gen Z-ers order drinks via mobile apps, so why wouldn’t they also do their banking right from their devices? Virtual tellers correspond with customers through video, email or phone calls.Make money a choice and not a chore 

Collectively, Gen Z is inclined to think of money as potentially fun, since money concepts and language have been presented to them in so many creative ways. Have a creative hobby you enjoy? Turn that into a side hustle. Getting a tax refund (or another lump sum of cash)? There are plenty of ways to use that money that are smart and fun. 

The bottom line: The future is bright, and your financial future can be too! 

Managing money is not a simple formula, and there are so many factors that make your finances as unique as you are! Our Rockland Trust financial experts are here to help you reach the goals and milestones that matter most to you. Head into a local branch, utilize our online banking and customer services or check out our other Learning Center resources.

SOURCE https://www.rocklandtrust.com/learning-center/personal-resources/six-financial-management-lessons-we-can-all-learn-from-gen-z

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