When it comes to money and personal finance, every generation has its own unique approach. Millennials have found the journey to adulthood riddled with a lot of obstacles. These challenges helped to shape millennials’ spending habits and attitudes towards money and debt.
However, millennials also have their fair share of financial mistakes along the journey, in which the Gen Z is already learning from.
Today, Gen Z is proving that they make saving a priority from early on by putting away a significant amount of money in their younger years. This generation also believes that saving is fundamental for the future and they are proving that they are the savviest when it comes to financial control.
For the cash-strapped generation, saving money is easier said than done. But as the younger generations get older, they also get wiser and they’re discovering that saving money is one of the biggest challenges that they have to face.
So how can the younger generation strengthen saving strategy for the future? What is the right approach towards money management for the millennials and the Gen Z’s?
Know what you’re dealing with.
When you start to earn money for the first time, it’s important to get into a habit of figuring out exactly how much you have to spend. Practice using a budget early to help you out a great deal in the long term.
Keep track of your spending with the use of technology. Use a handy smartphone app or make the most of an excel spreadsheet. You can be creative with your journal, too.
Learn when to say NO.
Millennials and Gen Zs are two generations that are afraid of missing out on the things that they say no to. You need to get into a habit of figuring out what you really want to say yes to, and what you can let slide and say yes to less.
Don’t be overwhelmed by FOMO. Pay attention to other things that could be triggers to your spending habits. Think carefully about how often you can realistically say “yes” so you can put money aside in your budget for those things that should be prioritized.
Organize your loan.
At some point in the future, you might need to borrow money, maybe for a car, a condo, or to fund an education. Getting a loan is not bad but make sure that you learn everything there is to know about your lending options before getting started. Some of the considerations could be the kind of quick and easy loans available and how to make the most of your credit score.
Plan for retirement.
The younger generations are never young to start thinking about retirement. It might sound like a long way off now but the earlier and the faster you start investing in your future, the better off you’ll be. If you’re financially savvy enough, you can leave your day job at 30 or 35 or retire early so you will not be riddled with FOMO, anymore.