Gen Z has been called thrifty and rational, and while its oldest people are in their 20s, older people have a lot to learn from young people about money.

The theory of generations was developed by American historians Neil Howe and William Strauss. Its main ideas are described in two books: Generations (1991) and The Fourth Transformation (1997). The authors analyzed the history of the United States through the prism of different generations, beginning in 1584, and concluded that every 20-25 years a generation is born with different value characteristics. These differences are due to the economic situation, the political environment and the degree of technological development of society.

Our current four generations are defined as baby boomers (born 1943-1963), X (mid 60s to early 80s), Y (millennials born after 1982), and Z (centennials born 1995 to 2001 yy). The Zetas are also called digital natives because they have been surrounded by digital technology since childhood.

Most Z-reps are still teenagers, but according to Bloomberg, they

Generation Z has a strong interest in saving, and they start saving much earlier than their parents. So, in the survey

According to the CGK, every second teenager (52%) expects to live on personal funds after the end of their career. In Generation Y, there are more of them (59%), although many of them in their 30s have not yet begun to form their own pension fund. At the same time, only a quarter of Z are hoping for a state pension, and among millennials such a third.

Centennials are frugal: they strive to start earning early and cut costs as much as possible to support themselves. Despite their early age, modern adolescents know how to keep a personal budget: 83% regularly track expenses, 89% say they feel more confident when planning finances, 60% have already opened a savings account, 49% of American teens want to save $ 2,500 or more.

Teenagers strive for financial independence. Almost half of American teens have savings to pay for their studies, and 71% plan to study and work in parallel. Moreover,

Z members value freedom and avoid commitments, including credit. A large loan is an unjustified risk for them. They will prefer to save up for purchases by regularly saving and investing.

For millennials, spending heavily on education was par for the course. Moreover, many of them strove for high-quality and expensive education and graduated from universities with huge debts.

Long-term financial goals for the younger generation are more important than momentary desires: 57% of respondents

They carefully weigh their purchasing decisions and do not like to overpay,

They also do not overpay for brands, unlike their predecessors, who are ready to lower salaries in a boutique or save on everything for the sake of a new iPhone model — it was noticed that

Generation X

So, according to the survey

They say about Z: “they were born with a smartphone in their hands,” that’s why 20-year-olds in financial management

Centinials are better informed about investing than their predecessors, and 17% believe the stock market is the path to a comfortable old age. Unlike Y, who have experienced stagnation and recession, Z is more daring to try themselves on the stock exchange. They spend a lot of time on investment forums, testing gamified investment tools and micro-investing applications where they can start small.


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