Growing up in an economy that favors technology, social media, and entrepreneurship, the “iGeneration”, as it’s sometimes called, shows not only excellent money management skills, but also a knack for investment.
Gen Z shows a responsible approach towards debt
Healthy savings and investment habits
In an effort to gain financial independence, Gen Z’ers are opening saving accounts earlier than any other age group and 50% of them say that they aim for at least $2,500. Since this is a generation of digital natives, it comes as no surprise that 26% are saving for phones and other devices, 17% are saving for personal vehicles, and 11% for college. Moreover, most of them rely on banking apps to keep track of their finances and rarely go to the bank’s physical offices.
Although investment rates among Gen Z’ers are relatively low when it comes to traditional investments such as real estate, the number of young entrepreneurs is growing steadily and there’s a whole new wave of success stories who show that gaining your first million in your 20s is entirely possible. Generation Z also shows an interest in alternative investments such as cryptocurrency and when they do buy stocks, tech companies such as Apple, Google, and Amazon, seem to be their favorites, along with innovation-driven companies like Tesla.
These figures don’t necessarily indicate that all centennials have reached peak financial literacy – in fact, on EverFi study showed that 50% of Gen Z’ers don’t know how to calculate their net value. However, the young generation is quicker to develop healthy financial habits and shows a responsible mindset that can lead to earlier financial stability.