The millennial and Gen Z generations are prioritizing financial goals for their 2024 resolutions, according to a recent American Express survey.
The survey, which included more than 1,800 people born between 1981 and 2012, found that 57% of respondents identified personal finance goals as their main objective for the next year. This was followed by wellness goals (50%) and mental health goals (48%).
“Financial wellness is a big part of your overall mental health,” says Sue Gardiner, certified financial planner and owner of South County Wealth Planning. “Being in a strong financial position means understanding your spending and personal cash flow.”
Both millennials and Gen Z are setting specific financial goals for the new year. Here are the top three financial goals for these generations and tips on how to achieve them.
1. Grow Savings
The top financial goal for millennials and Gen Zers in 2024 is to grow their savings, with nearly 60% of respondents listing it as a priority.
Gardiner suggests automating your savings by setting up regular transfers into a savings account. Choosing the right account is also important. “I recommend starting with a high-yield savings account,” says Gardiner. “With current interest rates, a high-yield savings account can be a great, safe way to grow your savings.”
2. Pay Off Debt
Over 40% of millennial and Gen Z respondents listed paying off debt as a top financial goal for next year. This is understandable, given the increasing difficulty of paying off high-interest debt since the Federal Reserve began raising rates in 2022.
There are several strategies for paying off debt, depending on your situation. One option is using a balance transfer credit card, which offers an introductory period with 0% interest, allowing you to pay down your debt without additional interest.
“If you have a good credit score and have been paying down the debt, rolling it into a 0% interest balance transfer credit card can help you focus on paying the principal,” Gardiner says. She also recommends creating a manageable payment schedule and being aware of fees and the duration of the 0% interest rate.
Other methods include the snowball method, which focuses on paying off small balances first, and the avalanche method, which targets the highest interest rate debt first. Both involve making minimum payments on all debts.
3. Stick to a Budget
Budgeting is considered essential for any financial plan, and 41% of millennial and Gen Z respondents agree that following a budget is an important goal for 2024.
Whether you use budgeting apps, spreadsheets, or pen and paper, the key is to ensure your budget is manageable. “Your budget needs to be understandable and not so complicated that you avoid checking it,” Gardiner advises. “When you first create a budget, check on it weekly.”
Regularly reviewing your budget will help you understand your spending habits and identify overspending in areas like groceries. “You’ll train yourself to make better decisions and form habits that will allow you to check your budget less frequently, eventually moving to biweekly or monthly reviews,” she adds.
