How Gen Z Is Confronting Their Financial Fears

How Gen Z Is Confronting Their Financial Fears

The rising post-Millennial generation known as Gen Z (b. ~1997-present*) will make up 40% of consumers by 2020―and their attitude toward finances is unlike any generation before

Education: An End to a Financial Means

75% of Gen Zers say college isn’t the only path to a good education

Gen Z after high school graduation
82% are planning to go directly to college
77% are considering a 4-year university
39% are considering community college
22% are interested in trade or technical school

Job preparation is the point of college
88% of 2017 graduates, the first Gen Z graduating class, chose their major with job availability in mind

Top expected career paths:
Medicine/health care: 39%
Sciences: 20%
Biology/biotechnology: 18%
Business/corporate: 17%

Top reasons Gen Zers choose a school:
Career Preparation
Interesting Coursework
Professors devoted to student success

Learning from their Elders: Student Loan Debt

Millennials save 15% more than Gen Z
Yet they have 169% more debt

Gen Zers fear taking on debt for education
Would take student loans
2016: 21%
2017: 11%
Would possibly take on student loan debt
2016: 71%
2017: 63%
Are already planning on taking on student loan debt
2016: 56%
2017: 49%

Gen Zers plan to save as much money as possible during college
66% plan to attend in-state in order to save on tuition
19% plan to live at home or commute to save on living expenses

Gen Zers watched their Gen X parents’ median net worth fall by 45% during the Great Recession―now, they want degrees and jobs that offer security

Employment: A Stable, High-Income Life

Willing to work hard for a stable income

Recent Gen Z college grads
75% are willing to relocate to another state for a job offer
58% are willing to work evenings and weekends
78% have completed an internship or apprenticeship

Take on extra income through gigs and part time work
77% earn extra money through freelance work, a part-time job, or an earned allowance
35% of Gen Z students say they already own their own business or plan on owning one in the future

Learning from their Elders: Social Media

Gen Z watched Millennials share every aspect of their lives and suffer professionally every time a potential employer did a Google search

Gen Zers may access social media more…
Gen Zers check social media up to 100X per day

Daily mobile internet use
Gen Z: 4 hours
Millennials: 3 hours

…But they’ve learned to share less
87% of Gen Z say that keeping their posts private is more important than likes and shares
66% of Gen Z have adjusted their privacy settings

Women have adjusted them 10% more than men
55% don’t like things to last forever online and they would rather be “anonymous than vocal”
76% believe people share too much about themselves

Saving: A Smart, Frugal Strategy

89% of Gen Zers say planning for their financial future makes them feel empowered
64% have already begun researching on their own or talking to others about financial planning
Average age Gen Zers start researching financial planning: 13

Gen Zers already own:
60% Savings account
54% Checking account
33% Health insurance
32% Credit card

Learning from their Elders: Overspending

40% of Millennials have overspent or gone into debt just to keep up with their social lives

Gen Zers think their purchases through
72% of Gen Zers say that cost is the most important factor when making a purchase
47% use their phones in-store to check prices and ask family and friends for advice

Gen Zers have a spending power of between $29 billion and $143 billion―and they’re ready to spend it their way

Sources:
http://www.pewresearch.org/fact-tank/2018/03/01/defining-generations-where-millennials-end-and-post-millennials-begin/
http://www.magazine.org/sites/default/files/Generation%20Z%20Unique%20and%20Powerful%20Whitepaper.pdf
https://www.slideshare.net/sparksandhoney/gen-z-2025-the-final-generation-preview/12-GEN_Z_2025Instilled_with_a
https://next.bncollege.com/wp-content/uploads/2017/06/15-BNCB-GenZ-Research-Report_v4.pdf
https://www.accenture.com/us-en/insight-gen-z-rising
https://www.nshss.org/media/30882/nshss-2018-careersurveyv6b.pdf
https://pressroom.aboutschwab.com/press-release/corporate-and-financial-news/despite-good-intentions-millennials-and-gen-z-are-demonst
https://www.collegesavingsfoundation.org/press-releases/gen-zs-are-pragmatic-planners-for-higher-education/
https://www.nitrocollege.com/blog/how-gen-z-is-managing-student-loan-debt
https://www.pewtrusts.org/~/media/legacy/uploadedfiles/pcs_assets/2013/empretirementv4051013finalforwebpdf.pdf
https://genhq.com/wp-content/uploads/2017/04/The-State-of-Gen-Z-2017-White-Paper-c-2017-The-Center-for-Generational-Kinetics.pdf
http://www.mbuy.com/blog/snapshot-of-gen-z
https://jaywing.com/news/z-5-privacy
http://time.com/1150/oversharenting-backlash-gen-zs-quest-for-online-anonymity/
https://newsroom.lfg.com/press-release/corporate/thought-leaders-outline-actions-designed-increase-financial-literacy-enhance
https://drive.google.com/file/d/0B1Axm9XHqBDgek10eTBkb3BKb051R3U4aXZKd0d0NjRzVEZB/view
https://www.creditkarma.com/insights/i/fomo-spending-affects-one-in-four-millennials/
https://nrf.com/research/what-do-gen-z-shoppers-really-want
http://www.millennialmarketing.com/2017/12/the-real-figure-of-gen-z-direct-spending-hint-its-bigger-than-you-think/