Skip to Content
two members of Generation Z discussing finances

Often dismissed as being glued to their phones or mesmerized by their gaming consoles, members of Generation Z — those born after 1997 — have money on their minds. In fact, 72% of them report feeling stressed about money, according to the 2019 Future of Money Study.

Personal finances can seem overwhelming to this generation, but they don’t have to be. Taking the time to fully understand their financial situation and setting realistic goals will help young adults build confidence — and have fun — with their money. Members of Generation Z should focus on these financial resolutions:

Create (and Follow) a Budget                two members of Generation Z discussing finances

Hands down, the most recommended financial tool is a budget. To budget effectively, you need a complete picture of what’s going out and what’s coming in. Track every expense – down to the penny – for 30 days to get a realistic sense of spending. Use this information to allot how much money should go toward each budget category, noting your personal goals such as building an emergency fund or paying off debt. You can use a good ole spreadsheet or variety of mobile apps.

Find the Right Student Loan Repayment Plan

Recent college grads will likely have to start thinking about paying back student loans. Federal student loan borrowers are automatically assigned to a standard repayment plan, which may not be the best solution. Graduates need to identify the right repayment option for their individual circumstances – typically an income-driven plan that’s more manageable. Our Student Loan Counseling provides much-needed guidance.

Build an Emergency Fund

An emergency fund serves as a buffer between you and credit card debt, reserving funds that are solely for emergencies, such as car repairs or medical expenses. We recommend saving three to six months’ worth of monthly expenses in a liquid savings account. That might seem difficult, but saving about $20 a week for a year will net you $1,000 – a big boost to that fund.

Start Retirement Savings

If you have access to a 401(k), be sure to sign up and start saving. Your age is a huge asset when it comes to retirement — take advantage of your youth and start early. If you don’t have a 401(k), consider opening an IRA. Contributing just $25-$50 a month will pay dividends down the road.

Free Yourself from FOMO

Social media makes it way too easy to feel like you need to keep up with your peers — or even celebrities. Be careful about who you follow and if you’re constantly feeling like you need to buy or do something to match what you see, change your social media habits. Focus on your goals and financial future, not anyone else’s.

Related Posts

Why You Should Celebrate Christmas in July

By now, you’ve probably seen or heard a number of ads talking about ‘Christmas in July’ sales and promotions. Some stores are taking it one step further and doing special ‘Black Friday in July’ events. Of course, no one is actually putting up a tree and decking the halls. Christmas in July is simply a […]

Read More

5 Things to Know about a Home-based Business

Many people who are tired of the daily grind think about giving it up to start a home-based business and be their own boss. For some, it’s an ideal situation that allows more freedom, flexibility and greater earning potential. But as much as it might sound like a dream scenario, there are several things to […]

Read More

Easy Ways to Save Money on Clothing

Whether you’re shopping only for yourself or outfitting a whole family, shopping for clothing can take a big bite out of your budget. It doesn’t have to, though. With a few smart shopping tips and tricks (and some that involve no shopping at all), you can save money on clothing and still look and feel […]

Read More
Font Resize
Contrast

Call 866-528-0588

Or schedule a call now
Please complete the required fields to continue.
Now Later