Noticeable changes in the way Generation Z spends money have been observed. The generation has grown up in a world that emphasizes financial prudence and is not living their lives on credit. They are more mindful of spending and saving wisely, as they have a long-term plan for their future.
A lot of young people are exploring ways to build their wealth as early as possible. Nowadays, it’s not unusual to hear about a teenager who has become a millionaire from creating content online or founding their own business.
Many are also investing in stocks, mutual funds, or index funds. They are motivated by the thought that they can control their future. Here’s why.
Access to Information
Gen Z has the greatest advantage of having access to an almost limitless cache of information through the internet. Youngsters are able to go online to research and learn about any topic under the sun. By watching videos on YouTube, reading articles, taking online courses, and participating in forums and social media discussions, they can master any skill or task they set their mind to.
Information is empowering. With forecasters, a young trader can learn more about forex trading before diving in.
Access to Opportunities
Many of them are freelancers and digital nomads who earn income online by offering services related to writing, blogging, programming, web development, app development and design.
Technology is their advantage. Not only are they familiar with operating online, but this generation is also numbers-savvy when it comes to financial decisions. As a result, they have no problem finding their first jobs, or even starting their own business.
In fact, today’s Generation Z is known to be entrepreneurial and start businesses without any family support. With the internet at their fingertips, they are able to learn how to build their business online and start earning without putting in much capital. The internet has given anyone who wants to become an entrepreneur run their own business by removing traditional obstacles such as lack of funding, lack of market knowledge, and lack of business contacts.
They Utilize Technology to their Advantage
Members of Generation Z are digital natives who grew up in a world surrounded by technology. They know how to navigate the internet, and aware how different gadgets and apps can help make their lives easier. They are at ease with new technology, making them more open to new ideas and inventions.
An example of this is the use of cryptocurrencies. Although many are still tentative about using cryptocurrencies, Gen Z understood how it works, and are now actively investing in Bitcoins.
Budgeting is Basic
They are also more conscious of budgeting their expenses, whether it’s for daily essentials or for traveling and family vacations. This generation has learned from the mistakes of their parents’ generation — leaving them scarred by a bad recession.
For example, they are more cautious about taking on loans and mortgages to buy property. A lot of them are choosing to skip college if it meant taking on debt. They have witnessed how their predecessors — the Millennials — have struggled to pay off their student loans years after graduating from university. They have seen how this debt has become a disadvantage that prevented millions of people from achieving their goals and building a stable life.
They know that their financial future will be influenced by the decisions they make now. This explains why they are spending wisely in order to build wealth for themselves early on, knowing that time is on their side when it comes to comfy retirement. They are also more careful about splurging on instant gratification, whether it’s on clothes or technology gadgets.
A Grind Mindset
Gen Z also has a strong work ethic due to their life circumstances. They understand that nothing comes easy in life, so most of them are working hard to achieve their goals.
They are not afraid of hard work. They are not afraid to set goals and take initiative because they understand that if they don’t, all their time will be wasted.
They also know that the sooner they start working on their future, the brighter it will be for them.
If you think about it, Generation Z actually has fewer disadvantages than succeeding Generations X and Millennials.
This is because they have been able to enjoy technological advancements that were not available to their older siblings, with the internet being a main booster. They also have more opportunities to succeed in life since technology has opened up many doors for them.