Generation Z, also known as iGen, post-millennials, or the homeland generation, are the younger siblings of millennials. They are typically those born between 1995 and the late 2000s. Growing up during the 2008 recession and facing today’s uncertain job market, Gen Z has developed some financial habits that everyone can learn from.
Spend Money on Experiences, Not Things
A major difference between Gen Z and older generations is their spending habits. Gen Z spends less on material items like clothes and cars and more on experiences. Whether influenced by the 2008 recession or the desire to share their adventures on Instagram, Gen Z shows us that memories last forever, while things are temporary.
Start Saving Early. Really Early.
We’ve all heard that it’s never too early to start saving, but Gen Z is actually following this advice. Many Gen Zers open savings accounts before they turn 10 and contribute to retirement accounts by their 20s. So, the next time you hear this advice, follow Gen Z’s example and start saving early.
Making Choices and Sacrifices Is a Part of Life
We all have to make choices about where to spend our money, especially on fun activities. Many Gen Zers learned about making choices and sacrifices during the 2008 recession. This challenging time led to some excellent financial habits. Gen Z has earned the title of “the most fiscally conservative generation” because they are often frugal with their money, especially on non-essentials.
Create a Stable Financial Plan
With rising tuition costs and a tough job market, Gen Z are dedicated financial planners. They start saving for post-secondary education much earlier than previous generations. Gen Z is preparing for their financial future long before many millennials even consider it.
Choose Utility and Quality Over Trendy Name Brands
Unlike their Gen X parents, who showed high levels of brand loyalty, Gen Z isn’t easily swayed by brand names. They prefer quality and utility over recognizable logos. Growing up in the digital age, where fast internet and instant communication are the norms, Gen Z values products that work well and quickly. How cool the product looks is less important.