How Gen Z Invest, Work and Cope Financially
Every generation has its own approach in terms of managing finances and investments. Now, those born between 1995 to 2010, collectively referred to as Generation Z or Gen Z, are approaching adulthood which will soon enter the labor force.
Interestingly, recent studies reveal that this young generation is actually more informed about investing and more financially conscious than most generations. They were tagged as “frugal”, woked (alert or informed to social injustices), and technology savvy. But with these qualities and the advent of fast-paced digital media, will the Gen Z lead the future of investment?
Sit back, and let’s explore some interesting traits about this generation on how they are shaping the world of business, work, and finance.
1. Gen Z want to know before diving in
These young people are motivated by security. If you are asking why, this may be because they saw how the previous generations took on huge financial hits with recession, economic uncertainties, so on and they learned from it. That’s also why they are taking a much more practical and cautious approach when they do make decisions. They want to be sure to make the right ones or at least be prepared for it.
2. Gen Z love saving money
Did you know that 60 percent of the Gen Zers already have a savings account or at least save? This is actually a good indicator for the future of investment made up of mainly teens and young adults. They are likely to be serious about money and career choices. Interesting right?
3. Gen Z are not “Brand-loyal”
It’s not that the brand is dead, but Gen Zers wants to support brands that they believe in and that reflect them. Simply put they are not naive. YOU CAN’T EASILY TRICK THEM. They are completely aware that brands and companies are spending for internet ads or paying influencers to endorse products. By and large, Gen Zers tend to trust individuals more than big institutions. So, if you want them to be loyal to you, be creative, responsive, and build a connection.
4. Gen Z are more competitive than Millennial
Gen Z is said to be defined by its competitiveness and being a multi-tasker. They want to work on their own and be judged on their own merits rather than those of their team. This also explains why Gen Zers were tagged as the “Burnout Generation” to have the worst mental health condition of any generation.
5. Gen Z prefer independence
Flexibility is important to them. They prefer to have office space to themselves, rather than an open or a shared workspace. They like to work alone or manage their own projects because they want to get recognized by their skills and abilities, not depending on others too much.
6. Gen Z want business with a purpose
While they are realistic about the challenges ahead, Gen Zers remain optimistic about the future. They want to work for something bigger than them. Something that has an impact on the world. They look for careers that will help the world and focus on businesses or companies that support social issues, as well.
7. Gen Z advocate for sustainable investing
According to Morgan Stanley of Institute for Sustainable Investing, around 72 percent of Gen Zers expressed desire that responsible investing could improve sustainability outcomes. Gen Zers are becoming more socially responsible, health conscious, and concerned with purchasing environmentally safe products. They are taking action by investing in companies that support their ideals.
In Summary
Generation Z is undoubtedly shaping how we do business now. Composed mainly of teens and early adults, these young people are ambitious, frugal, and tech-savvy. More than that, they value diversity and are entrepreneurial driven by purpose and meaning. And as they enter the professional workforce and start investing, it will be interesting to see what comes out of their unique approach in the world of money.
If you are one of the Gen Z who is considering real estate investing as an option, you may talk to a professional real estate agent who knows the ins and outs and the current real estate trends of today.
