{"id":1141,"date":"2020-08-05T06:58:43","date_gmt":"2020-08-05T06:58:43","guid":{"rendered":"http:\/\/www.unitedfinances.com\/blog\/?p=1141"},"modified":"2020-08-05T06:58:43","modified_gmt":"2020-08-05T06:58:43","slug":"the-worlds-newest-adults-everything-you-need-to-know-about-gen-zs-financial-situation","status":"publish","type":"post","link":"https:\/\/www.unitedfinances.com\/blog\/the-worlds-newest-adults-everything-you-need-to-know-about-gen-zs-financial-situation\/","title":{"rendered":"The World’s Newest Adults: Everything You Need to Know About Gen Z’s Financial Situation"},"content":{"rendered":"

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Gen Zers are the newest adults. Their ages range from 5 to 25 years old, making them born between 1997 and 2015. Gen Z is unique because they were raised with technology and are savvier and more intelligent in many ways than their predecessors, including Millennials.<\/span><\/p>\n

But what about their financial situation? <\/span>Only 24% of Gen Zers<\/span><\/a> are financially independent by the age of 22. But there could also be a few reasons why \u2014 Gen Zers are still supported by parents at this young age, many are in college, and more.<\/span><\/p>\n

So, what all do we know about Gen Z\u2019s financial situation?<\/span><\/p>\n

How Gen Z Compares With Other Generations<\/span><\/p>\n

Gen Z is different from other generations for many reasons. They\u2019re not only well-versed in technology but they rely on it. This means that Gen Z may not know traditional financial tasks, such as writing a check.<\/span><\/p>\n

Visited Their Bank<\/span><\/p>\n

The Federal Reserve<\/span><\/a> states in 2017, half of U.S. adults with a bank account used their phones to access their accounts. And this trend has likely increased throughout the years.<\/span><\/p>\n

But do Gen Zers visit their actual bank location? While they likely have been to their bank location, they don\u2019t visit the physical bank building as much as Boomers, Gen Xers, and even Millennials. That’s because you can do most banking functions online or on the banking mobile app.<\/span><\/p>\n

Written a Check<\/span><\/p>\n

Checks are becoming archaic. This is why many Gen Zers don\u2019t write checks, especially compared to Boomers.<\/span><\/p>\n

Applied for a Credit Card<\/span><\/p>\n

Gen Zers are still young and may not have a sound financial situation or even the need to apply for a credit card. All other generations have credit cards and use them regularly. Gen Zers are also smart; they see the financial mistakes that Millennials made and may be hesitant to sign up for a credit card.<\/span><\/p>\n

Contributed to a Retirement Savings Account<\/span><\/p>\n

Gen Zers are young and retirement is likely far from their minds. While most Boomers already reached this retirement age, Gen X is right around the corner from retiring. Even Millennials are taking retirement seriously and have contributed to their retirement wealth.<\/span><\/p>\n

How Does Gen Z Handle Their Finances?<\/span><\/p>\n

While Gen Z may not be as experienced in certain financial tasks as other generations, they do have many advantages over their older counterparts. Does that mean Gen Z handles their finances better?<\/span><\/p>\n

First, Gen Z is likely in less debt than others. That\u2019s mainly because Gen Zers are still young and less experienced in many areas of life. For example, Gen Z only owns <\/span>2% of the housing market<\/span><\/a>, so many 20-something-year-olds aren\u2019t paying off a mortgage.<\/span><\/p>\n

However, many Gen Zers are still in school and hold student loan debt. Their debt will likely increase in the next coming years.<\/span><\/p>\n

Is Gen Zers Receiving Financial Support?<\/span><\/p>\n

One of the reasons why Gen Z has a more stable financial situation than Millennials is they\u2019re receiving financial support, specifically from their parents.<\/span><\/p>\n

Most Gen Zers are just starting out in the working world or are going to college. They can\u2019t afford to cover their housing, groceries, and more.<\/span><\/p>\n

This is the perfect time for Gen Zers to find ways to make money and save for the future. If you\u2019re not sure where to start, take a look at some of these <\/span>Grant Wydeven finance tips<\/span><\/a>.<\/span><\/p>\n

Does Gen Z Strain Their Budget?<\/span><\/p>\n

It\u2019s easy to get out with friends when you can\u2019t afford it or buy a new phone that\u2019s way out of your budget. Millennials had the bad stereotype of spending outside of their means. Is Gen Z following this same path?<\/span><\/p>\n

Surprisingly, most Gen Zers don\u2019t spend what they can\u2019t afford. They likely watched the same mistakes that Millennials made and learned from them. They may also try and lower their spending as much as they can.<\/span><\/p>\n

However, there are Gen Zers who make the same mistakes as Millennials. They may take those extra funds out of their savings or will put them on a credit card.<\/span><\/p>\n

Financial Misconceptions That Gen Z Is Taught<\/span><\/p>\n

One of the reasons why Gen Z may not be financially successful is some misconceptions that we\u2019re taught. For example, a Gen Zer may have been told they\u2019re too young to save for retirement.<\/span><\/p>\n

Here are some other examples of financial myths.<\/span><\/p>\n

Having Multiple Credit Cards Is Bad<\/span><\/p>\n

As stated previously, most Gen Zers don\u2019t have a credit card or even applied for one. They may not think they need one or they may have even told holding multiple credit cards is bad.<\/span><\/p>\n

While collecting debt on multiple credit cards can be bad for your credit score, holding multiple credit cards won\u2019t badly impact your credit score (though signing up for one may reduce your credit score). Actually, actively using your credit cards is good for your credit card.<\/span><\/p>\n

You Need to Carry a Balance on Your Credit Card at All Times<\/span><\/p>\n

Ideally, everyone should pay off the entirety of their credit card. If you carry below 30% of your credit card balance, it won\u2019t dramatically affect your credit score. But all cardholders should aim to pay off the entirety of their credit card balance.<\/span><\/p>\n

This is a common myth passed down from generations, including Gen Z. Fortunately, more education and better credit card practices are reducing these myths.<\/span><\/p>\n

There\u2019s No Need to Invest in Retirement at a Young Age<\/span><\/p>\n

The younger you invest in retirement, the more financially successful you will be in life \u2014 especially when those retirement years roll around. Even if Gen Z only adds a little bit of money to a retirement savings account, they can experience some serious wealth once they reach retirement age.<\/span><\/p>\n

Does Gen Z Have a Good Financial Situation?<\/span><\/p>\n

We often wonder about the financial situation of younger people. But what about Gen Z? Gen Z saw the mistakes that Millennials made and are more educated in the ways of finances. Since Gen Z is young, they\u2019re supported by their parents and don\u2019t carry as much debt.<\/span><\/p>\n

However, Gen Z was taught some common financial myths such as they\u2019re too young to save for retirement. It does seem that many Gen Zers aren\u2019t believing these myths and are putting financial health as a priority.<\/span><\/p>\n

Do you want to read some more finance information and tips? Continue reading our blog!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Gen Zers are the newest adults. Their ages range from 5 to 25 years old, making them born between 1997 and 2015. Gen Z is unique because they were raised with technology and are savvier and more intelligent in many ways than their predecessors, including Millennials. But what about their financial situation? Only 24% of … <\/p>\n

Continue reading “The World’s Newest Adults: Everything You Need to Know About Gen Z’s Financial Situation”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/posts\/1141"}],"collection":[{"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/comments?post=1141"}],"version-history":[{"count":1,"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/posts\/1141\/revisions"}],"predecessor-version":[{"id":1142,"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/posts\/1141\/revisions\/1142"}],"wp:attachment":[{"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/media?parent=1141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/categories?post=1141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.unitedfinances.com\/blog\/wp-json\/wp\/v2\/tags?post=1141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}