We all know that Gen Z is setting trends in fashion, pop culture, and various aspects of life. While millennials may be older, there is still much to learn from the younger generation, particularly in the realm of finances.
A study by SoFi revealed that Gen Z is surprisingly financially savvy, with 21% stating that making money is their top priority. Let’s delve into five valuable financial tips we can learn from Gen Z.
1. Diversify Your Income with a Side Gig
Despite the trends on TikTok, Gen Z has embraced the concept of having multiple income streams. Research shows that 43% of Gen Z individuals have a side hustle in addition to their main job, while only 33% of millennials engage in this practice. Whether it’s paying off debts or boosting your savings, exploring side gigs like online surveys, selling items online, or part-time retail work can be beneficial.
2. Harness the Power of Positive Thinking for Financial Goals
Gen Z often uses affirmations and manifestations to manifest their aspirations. By adopting a positive and proactive mindset towards money, you can improve your financial outlook. Techniques like money journaling can help reshape your money beliefs and set the stage for financial success.
3. Prioritize Your Retirement Savings
While being the youngest in the workforce, Gen Z is forward-thinking when it comes to retirement planning. Studies indicate that 37% of Gen Z aims to retire before turning 50. It’s never too early to start planning for retirement. Consider contributing to a workplace retirement plan like a 401(k) or utilizing online calculators to determine your savings goals each month. Opt for high-yield savings accounts for better interest rates.
4. Opt for Home-Cooked Meals
Instead of indulging in frequent outside dining, consider cooking at home to save money. Gen Z understands the financial benefits of preparing meals at home, with 43% opting for this cost-effective approach. While occasional dining out is enjoyable, preparing meals at home can be budget-friendly and healthier, with options like easy one-pan recipes or meal prepping.
5. Discuss Family Planning and Financial Goals with Your Partner
Thinking ahead about family planning, Gen Z encourages discussions about financial readiness for starting a family. Whether you are in a relationship or already married, it’s crucial to align your financial goals with your family planning aspirations. Begin saving early if needed and make decisions that align with your future plans.
