Personal finance can be daunting, but it’s becoming increasingly important for young people to understand. Gen Zers are digital natives, reflected in how they get their financial advice. With the rising cost of living and student loan debt at an all-time high, it’s more important than ever for Gen Zers to get their finances in order. Luckily, several popular financial planning trends can help:
1. Unwillingness to be in debt
As education and housing costs continue to rise, Gen Zers are increasingly unwilling to take on debt to finance their lifestyles. Instead, they are looking for creative ways to save money and build their wealth. One popular trend among Gen Zers is financial planning. More and more young people are planning their financial future, including setting goals and budgeting for long-term expenses.
2. Many live with parents
The majority of Gen Zers still depend on their parents for financial support. This is not necessarily surprising, as most young adults in this age group are still in school or just starting their careers. However, it doesn’t mean this generation is not thinking about owning their first home or renting their first apartment. One trend that has emerged in recent years is using financial apps and budgeting tools to save for housing goals. These tools can help Gen Zers track their spending, set budget goals, and stay on top of their finances. Another popular trend is using credit cards to build credit and earn rewards. By using credit responsibly, Gen Zers can establish a good credit history that will benefit them in the future.
3. Gen Z loves crypto
Unlike their predecessors, Gen Z is not content to save for retirement and hope for the best. Instead, they want to take control of their financial future and make their money work for them. And when it comes to investing, crypto is one of the most popular trends among Gen Zers. Cryptocurrency offers a lot of advantages for young investors. For one, it’s a relatively new asset class, which means there’s still a lot of growth potential. Additionally, crypto is highly volatile, which can lead to big gains (or losses) in a short period. And finally, crypto is largely unregulated, allowing investors to make huge profits without answering to anyone. For all these reasons, it’s no wonder that crypto is such a popular investment choice among Gen Zers.
4. Investing in index funds
Another popular trend among Gen Zers is investing in index funds. Index funds are a type of investment that tracks a basket of stocks, offering diversification and reduced risk. This makes them an appealing option for young investors looking to grow their money over time. As Generation Z enters adulthood, they quickly develop their unique personal finance approach. With access to new technologies and trends, they are well-positioned to make smart financial decisions that will benefit them in the long run.
5. Many get personal finance advice online
One popular trend among Gen Zers is using online personal finance tools. These tools can help users track spending, set goals, and stay on budget. In addition, many online personal finance tools offer free or low-cost versions, making them accessible to many users. One trend is getting personal finance advice from TikTok and YouTube. These platforms are filled with content creators sharing tips and tricks for saving money and reducing debt. Gen Zers can learn a lot by following some of these accounts and watching their videos.
As we’ve seen, there are several popular financial planning trends among Gen Zers. From automated investing to diversification, it’s clear that this generation is taking a more proactive and technological approach to their finances. And with the challenges of today’s economy, that’s a good thing. So whatever your financial goals may be, remember to keep these trends in mind. After all, Gen Z knows a thing or two about money.