Those born from 1995 onward known as members of the Generation Z or iGeneration are starting to catch the attention of businesses. With growing consuming power, they are the newest entrants to the workforce and already pitted against the millennials. But without resorting to such contrasts and comparisons, let’s take a look at how Gen Z can actually be ripe for finance-related discussions.
Are they really a conservative bunch? How much value do they really put on money? And more importantly, if yes, what are the reasons for their attitude and behavior? Here are a few habits that can help us better understand this new breed of financial whizzes.
They are money-conscious
The oldest of the iGens being 23, their seriousness about money may shock members of the more senior cohorts. One iGen interviewed by Mic said that seeing what happened to friends’ families during the Great Recession, she was careful about saving and spending money. Financial survival was a skill she learned early. But this kind of story does not mean they are pessimistic about their financial future. Research showed that iGens are more optimistic than other generations, with 89% of the respondents saying so. Meanwhile, 83% of millennials and Gen Xers and 78% of baby boomers feel the same.
They are highly individualized
Here, we can compare them a little with the millennials, who prefer the guidance of mentors. On the other hand, Gen Z are quite used to helping themselves. When translated to finding solutions online, if they can’t find alternatives, they will create one. This show of independence may be attributed to their immersion in the digital landscape while growing up. The internet has always been there to give them answers. Over time, they have become more of an expert in Googling answers. At some point, they found the answer through a person their age, someone who is just as skilled in this type of reality. Their normal is a thing to consider when we are introducing financial instruments like investments to them.
They are saving for retirement this early
They use a different approach to money and debt. Some are intentionally choosing a university or college that will not leave them debt-ridden after graduation. Those who are already working are conscious about saving up immediately, so they can later spend more time enjoying the fruits of their hard labor. It is for this reason that they are ripe for discussing the different ways they can grow the value of their money. The importance of time-tested investment techniques will not be lost on them. Still, they have known digital transactions all their life it might be best to reach out to them where they’re at: online. Further, they can be more open to trading bitcoins and other cryptocurrencies.
They want the best deals
Let us define what the iGens consider as a good deal. For instance, in renting an apartment, this young crowd will look for an array of characteristics such as community spaces and digital connectivity. But they will not stop at those qualities. It is also important to them to save money, and they will use their technological skills to achieve that end. According to ForRent, they will take advantage of instant coupons and online flash sales. This is a behavior that applies not only to buying short-term supplies of goods but also to availing of something that lasts for the mid- or long-term like renting an apartment. It is not far-fetched to think that they will use the same approach to investing.
They think long-term
Lastly, the Gen Z cohort are said to share some of the fastidiousness that is characteristic of individuals born during the Great Depression. Although they have been raised in a society that is replacing cash carrying with card swiping, even more than that, they are smart about spending. In betting for their financial future, they will be likely just as conscious. They are already revealed to be less impulsive than Gen-Xers.
Getting to know the youngest members of the workforce can give us an idea on how to craft messages that speak to a wider audience. It will also prove valuable to listen to their thoughts, as we discover they know a thing or two about experiencing a melt-up in their still short years in life.
Frontpage September 8, 2018