How Gen Z Is Confronting Their Financial Fears

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Can credit cards help Gen Z with 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

Gen Z Financial Fears