This generational group’s views of money and how to tackle their finances will differ from Millennials. Their experiences and tech prowess will inform how they save, spend, handle debt and credit, retirement and other investments.
1. Have A Sound Financial Plan
Gen Zers are aware of the impact that the severe recession and massive amount of student debt has had on the Millennials. Gen Zers aim to be more frugal and avoid debt. They are already considering retirement savings earlier than previous generations.
2. Savings and Spending
According to 2018 EVERFI report on Gen Z, 90% of those surveyed had transactional bank accounts, that is, checking accounts, but only 60% were personal accounts with the remainder being joint or custodial accounts with their parents.
Most importantly, they need to spend within their means. That is easier said than done when you have debt from borrowing for college and other needs. By tracking their spending and budgeting carefully, they can keep their costs under control.
7. Have A Plan In Place To Use Debt Sparingly
It is not too early to consider paying credit card balances in full, not just paying the minimum on time. When you pay only what is required by your credit card company, the remaining balance is charged a high interest rate. Great for the credit card company, not for the borrower.