Finances and Gen Z
As the next generation enters the workforce, the business landscape is shifting. For years Millennials have been focused on, due to the fact that they were the younger generation, but now there are new kids on the block. Gen Z is coming of age.
Born between 1980 and 1995 the Millennial mindset was quite different. They saw the fundamental shift to a digital world happen around them. Technology has changed the way we do business, consume media, and generally interact. While Millennials are thought of as tech-savvy and having a far greater understanding of the world in a digital way, many of them still remember a time when the world was not as connected as it is today.
Gen Z, born in the mid-nineties or later, experienced smartphones becoming the norm during their childhood, and the internet was available everywhere – not just through a dial-up internet connection. For the first time, a new breed of human exists that has never had to deal with anything pre-internet.
For one thing, they have access to the world of entertainment, finances, and the ability to purchase at their fingertips. They can Google anything, and get an answer. Knowledge is power. And these young folks have buying power.
According to research, Gen Z is on track to become the largest generation of consumers on the planet by 2020. While that may be true, it’s interesting to note that they’re not frivolous with their money. They tend to be careful and pragmatic when it comes to financial decisions. Studies show that due to the fact that they experienced the great recession and witnessed many families falling on hard times or losing their homes, these young adults are far more careful and knowledgeable about money than one might expect.
A TransUnion study showed that a staggering 83% of Gen Z are saving money while a Bankrate study shows that the 20% of Americans are not saving anything at all. There's a new wave of brave souls steering a course into the future safe in the knowledge that they're saving more than ever before and will be in a stronger financial footing overall.
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