New Survey Reveals Gen Z’s Money Habits and Offers Advice for Saving
With more access to financial information than any other generation, Gen Z is often paralyzed by conflicting advice. They could benefit from new ways to save.
From the LifeMinute.TV Team
April 10, 2023
April is Financial Literacy Month and tax season, a period many Gen Z filers will receive their largest paycheck of the year…their tax return. For those born between the mid-90s and early 2010, you are part of Generation Z. According to a prosperity study by Intuit, the global financial technology platform that makes TurboTax, Credit Karma, QuickBooks, and Mailchimp, nearly 3 in 4 Gen Zers say they would prioritize a better quality of life compared to extra money in the bank. 66% say they are only interested in finances as a means to support their current interests. However, with more access to financial information than any other generation, Gen Z is often paralyzed by conflicting advice. They could benefit from new ways to save.
The survey revealed two-thirds know it is important to invest. And they know the basics of building a budget, but they’re not sure they’ll ever have enough money to retire. The economic shocks of the last few years have transformed Gen Z’s point of view on what success looks like. The survey found this generation created their own saving trend, deemed “soft saving,” which prioritizes experiences and quality of life now over saving for the future and a life aimed at comfort with low stress.
Intuit Consumer Financial Advocate Brittney Castro recommends a balanced approach to your overall savings. You don’t need to hoard away all your hard-earned dollars to achieve financial independence and early retirement. But plan for the future, including the short-term, such as home or car purchases or for an emergency.
So, what are simple tips for a lower-stress way to save that still allows you to live for the now? Castro says to apply the 50-20-30 rule to how you spend and save your income: spend 50% on needs such as rent and mortgage, 20% on savings or debts, and 30% on wants such as clothing, travel, and self-care.
And, if you are getting a tax refund or other windfalls like bonuses or gifts, you can find the balance by splitting funds into saving, investing, and enjoying money for today. This way, enjoy some of your new funds now while putting some away to help you in the future. The financial tools by Intuit make it easy to maintain that low-stress “soft life.” Credit Karma’s Net Worth Experience will help you understand the different components of your net worth so you can monitor and track your progress over time and make plans for the future.
For Generation Zers working a side hustle or owning their own business, Intuit’s TurboTax and QuickBooks self-employed products sort your expenses and make getting your maximum tax refund super simple.
Finally, Castro says to free up funds, reduce expenses and sell things you no longer use. Also, know your credit score. When it’s time to apply for a home mortgage or get a cell phone plan, your credit score and report can affect your life in many ways. Pay your bills on time, even if it’s just the minimum payment, and pay off credit card debts. You can review your score regularly, which Intuit’s Credit Karma is great for.
Visit intuit.com for free personal finance workshops and more info.