While the General Z. He’s getting into the world of work, or at least recently started making his first money, experts personal financing They began to launch the first messages intended specifically for the new generation.
Among the warnings that have been issued so far, one is particularly intriguing: Do not imitate Millennials, At least in money management. According to research by Charles Schwab, in fact, in this last generation that grew up at the turn of the century, there is a clear trend towards indebtedness aimed at fulfilling the models of wealth that their idols unleashed on social media.
In fact, millennials in the US have proven to be particularly inclined to borrow to buy a car. And so it happens that the premiums, for a car that are more expensive in relation to annual income, are similar to mortgage payments. “The influence of social media has made many millennials under pressure to keep up with their peers,” he said. He said a GoBankingRates Sabrina Hamilton, editor of Finance Over Fifty, said, “This swelled lifestyle and increased debt.”
Gen Z: Don’t underestimate your retirement savings
“Another financial mistake that millennials tend to make is not saving enough for retirement,” Hamilton added. Their lower incomes are supplemented by withdrawals from their retirement accounts. “
No wonder if The third mistake is not learning the basic elements of personal finance And money management – which, moreover, is not taught in school even in the United States.
In conclusion, Generation Z guys should focus more on savings accounts and give in less to the looks dictatorship that reigns over Instagram and TikTok – though resisting the temptation will likely not be easy.