For years, generations have followed after one another, learning and observing similar financial behaviors, until now. The younger generations are testing these trends. The millennial generation and Generation Z (Gen Z) are breaking the economic norms and creating their financial paths. Understanding how the generations stand out from the rest is crucial to keeping your business relevant and ensuring a prosperous future.
Following the millennial generation, Gen Z consists of individuals born in 1996 or later. This generation has witnessed the millennials deal with certain financial hardships, like student loans and credit card debt; motivating their financial decisions to break away from the norm. Not to mention, coming of age during the financial recession and housing market burst has also dictated their financial savviness. Understanding their behavioral trends plays a significant role in their economic actions.
Importance of Financial Literacy
Despite what Gen Z-ers have dealt with, most are quite optimistic about their financial success. The problem is the generation is proving to be unprepared for achieving the realities of this economic success (Corns, 2018). The good news, Gen Z-ers are above the curve in knowing the importance of financial literacy compared to previous generations. Simply put, they just need guidance to the right resources. Overall, Gen Z is becoming increasingly aware of their finances and need for financial literacy (“How Gen Z Thinks About Finances” 2018).
Understanding their Decisions
Most of Gen Z is less focused, better multi-taskers, bargain hunters, early starters and more entrepreneurial. They aren’t afraid to spend money but at the same time dedicate resources to maintaining a bank or savings
While the millennial generation is at the forefront of most debates, Generation Z is taking the lead and redefining previously understood financial preferences. Financial service organizations need to follow the new paths and understand the Gen Z behavioral trends to stay relevant and effectively serve consumers.
Ready to lead Gen Z to a successful financial future?
The Financial Fitness Group, a purveyor of comprehensive online financial education programs, has the many resources you need to be a financial success. We offer unbiased online, interactive instruction in personal finance, financial planning, investing and much more. Learn more about our online resources or schedule demo today.