Generational spending : Gen Z
Every generation has its identifiers. But how do these generations differ when it comes to handling finances?
As part of our Generational Series, we will breakdown the habits of different age groups, and Generation Z is up first.
Gen Z, those born between 1996 and 2015, is also known as the Digital Citizen generation. They have grown up with smart phones and ever-evolving technology. According to IBM, 75% of Gen Z consumers use mobile phones and smart phones over other devices, and 25% of consumers are on their phones over five hours a day.
With the amount of transparency and time spent online, it may not be a shock that nearly 41% of Gen Z-ers feel anxious or self-conscious about their money. However, most of the consumers track their money using budgeting tools. They are more organized about their finances, but their worry about the future makes them entrepreneurial and creative when it comes to their income.
By the numbers
Boomers, Gen X, and Millennials all handle money differently, but there are some financial tools that these generations use that Gen Z-ers have not used at all or less often.
Only 52% have written a check.
Surprisingly to some, 75% visit a physical bank location for their personal banking services.
56% have applied for a credit card.
28% have started to contribute to a retirement savings account.
66% feel that they should always carry a small balance on their credit card in order to build their credit score.
46% have their parents assist with their housing costs.
Skeptics You must deliver on trust when it comes to winning over Gen Z’s business. They do not want to overpay, they will have done plenty of research, and they want to ensure they are making a safe purchase. To ease their skepticism, Gen Z-ers expect companies to be transparent with their customers and have an emphasis on good ethics and community responsibility. If you serve them well, they are likely to tell their friends. Since 46% of Gen Z-ers say their peers’ recommendations and opinions are factors when making a decision, this is vital.