It’s typical for older generations to believe they have the most knowledge and experience to pass on to the younger ones. However, it appears the reverse could be true regarding money.
Generation Z (anyone born in 1997 or later) is saving an average of 14 percent of their income, which is more than any other age group. Because of this, they have more confidence in their savings (69%) than boomers at 65%, millennials, and Gen Xers (both 60%).
This begs the question: What else could we learn from this unique group of individuals? So here are five more money-saving tips from Gen Z.
1. Go for experiences over things
Consumerism doesn’t bode well with today’s youngest generation of adults. Someone from Gen Z would much rather hang out with their friends and take a cool trip than spend money on an oversized home or drive an expensive vehicle. But, unfortunately, the latter doesn’t leave them feeling nearly as fulfilled.
This can be a good vetting process the next time you feel the need to buy something. Ask yourself, “What am I sacrificing for this purchase? What enjoyment or memories could I be creating instead?” Not only will this help you to spend less, but chances are you’ll find your purchases much more fulfilling.
2. Choose quality
When a Gen Zer makes a purchase, they don’t do it because of the name brand or a clever marketing campaign. Instead, they do so because they’ve checked the reviews online or listened to authentic testimonials to ensure the product is high quality.
For the older generations, there’s a lesson to learn here. Whether it’s a new vehicle, household appliance, or even a piece of clothing, ask yourself: What do I really know about this product? This helps you focus better on items that will last longer and not need replacing anytime soon.
3. Protect your family
Though many people from Generation Z have yet to start their families, those who have begun already understand the protection life insurance can provide. The younger generation has seen how procrastinating in getting coverage can leave their loved ones in financial ruin, and they don’t want to risk the same.
Just because you’re a millennial or Gen Xer, you shouldn’t assume you’re too old to qualify. Many people in these age brackets can still get a reasonably priced term life insurance policy if they’re in relatively good health. In addition, even those with pre-existing medical conditions have life insurance options (such as a guaranteed issue policy) where no health screening is required.
4. Practice DIY investing
Unlike the younger generation, most others have yet to embrace DIY (do-it-yourself) investing. However, thanks to advancements in financial products and trading apps, most platforms will let you invest for free. Some even have so-called “robo advisers” which will recommend what assets to purchase.
This is revolutionary because instead of paying a financial advisor thousands of dollars per year, you could successfully manage your own portfolio for free. In addition, since there are fewer fees, this will ultimately result in a much larger retirement nest egg down the road.
5. Leverage the Internet
Gen Zers are very good at using the Internet to find the answer to just about any question they have. Whereas previous generations may have paid somebody to help them fix something around the house or advise them about a particular matter, Gen Z is adept at finding a helpful YouTube video or blog post with the solution they need. This shows that the more willing you are to look for the answer, the more likely you’ll find this information for free and take care of the problem yourself.
The Bottom Line
There’s a lot that the older generations can learn from Generation Z. From practicing better spending habits to following through and getting that much-needed life insurance policy, this group of adults is already demonstrating that they’re on the right track financially. So if you’re from one of the older generations, embrace these tips and find out how to use them to benefit your financial situation.