Generation Zers, otherwise known as those born between 1995 and 2010, are nothing if not fiercely independent. They're competitive, self-service digital natives who want to take their destiny into their own hands. However, in some cases, Gen Zers lack the basic knowledge about money management skills that are needed to truly thrive. Financial education is rarely taught in schools, leaving an entire generation searching for more information on topics like saving money, budgeting and credit scores. Many seek advice from their friends or turn to social media, specifically YouTube, to learn about how to manage their money.
Being financially savvy is an important element of good financial health and provides these core benefits:
- Helps to build positive habits that make it easier to achieve financial security
- Helps to put you in a position where you're making fewer financial mistakes
- Above all, helps you stay out of financial trouble – which may be the most important advantage!
If you fall into the Gen Z category, there are likely a number of financial stressors you may be facing. By understanding these stressors, you can put yourself in a better position to avoid them. Let’s take a look at the top four.
Financial Stressor #1: Saving Money
If you are like most Gen Zers, you may be afraid that you will not be able to make enough money to simply live your life on your own terms and be happy. Or, you may be concerned that you'll never get to a point where you feel financially secure.
By taking a broader look and diving deeper into financial education topics like saving money, you can put an actionable plan in place today to help mitigate your financial stress in the future. Read our money-saving habits so you can start saving more today.
Financial Stressor #2: Poor Spending Habits
Another common trait that a lot of Gen Zers share is poor spending habits. Do you tend to overspend even when funds are low? If so, your budgeting skills may not be where they need to be. This habit can lead to not saving enough money, which is a key element to your financial security. By taking a look at how much you're spending and why you can make adjustments to put yourself on a stronger financial path in the future.
Financial Stressor #3: Overwhelming Student Loans
This is one of the top stressors for Gen Z! Paying student loans may keep you up at night, but having a plan in place to pay off this debt is possible. To get started, read our tips to help pay off student loans including how to choose the right repayment plan, seeking help from an employer, and understanding tax deductions and credits. Calculate your ability to pay back student loans with this calculator.
Financial Stressor #4: Managing Credit
Finally, we arrive at the topic of managing credit – a pain point across all generations, but one that can be particularly stressful for Gen Z. We can all agree that having too much debt is not desirable, but understanding how to manage debt will help you.
There are many responsible ways to manage your credit, but one of the top habits is to simply pay all of your bills on time! Another important habit is to use your credit card wisely. If you have a credit card, use a tool like this one to determine how long it will take to pay your balance down – it’s a great way to keep your spending in check. Even being proactive about understanding your credit score and using innovative online tools, like Credit Sense can help you monitor your credit and can be a great way to address a lot of these financial stressors head on.
In the end, people of all ages, including Gen Zers, who have a strong and healthy financial foundation, are apt to make smarter and more informed choices. Lakeland Bank can help you move in the right direction. Stay informed about your financial future by exploring our other blogs on a variety of topics. You can also sign up for our free monthly e-Newsletter and let us help keep you financially brilliant.