money management tips Archives

Meet Generation Z, the younger siblings of millennials, born between 1995 and the late 2000s!

Despite growing up in the aftermath of the 2008 recession and facing an uncertain job market, Gen Z has developed some impressive financial habits that everyone can learn from.

#1: THOUGHTFUL CHOICES & SACRIFICES

Gen Z understands the significance of making thoughtful decisions, especially when it comes to spending on non-essential items. Having experienced the impact of the 2008 recession, they’ve earned the reputation of being the most fiscally conservative generation in years. This frugal nature allows them to manage their funds wisely, focusing on essential expenses and saving for the future.

I had a conversation with my younger Gen Z cousin about money, and She shared how the recession taught her the value of choices. Her family had to cut back on certain luxuries, which taught her to prioritize his spending and save for rainy days.

#2: UTILITY & QUALITY OVER BRAND NAMES

Unlike their parents’ generation (Gen X), Gen Z doesn’t base their choices on recognizable logos and brand loyalty. Having grown up in the tech age, they value efficiency and usefulness over trendy branding.

A Gen Z friend once shared a funny incident where they refused to buy expensive shoes just because they had a famous logo. Is logomania really over?

#3: DIVIDE YOUR MONEY INTO BUCKETS

Gen Zers must organize money into different categories or “buckets” to track spending effectively. This could involve setting up separate bank accounts for different financial goals or physically allocating cash into envelopes labeled for specific expenses.

For example, dividing income into necessities and discretionary spending helps maintain financial discipline. Creating buckets for short-term and long-term goals, as well as savings and investments, aids in focused financial planning.

#4: SOCIAL MEDIA AS A STARTING POINT

Many seek financial guidance through platforms like TikTok and Instagram. While social media can offer useful tips, it’s essential to recognize its limitations and supplement it with further research.

One of my Gen Z acquaintances confessed how she used to believe everything she saw on financial TikTok without question. After making some hasty financial decisions, she learned the importance of cross-referencing information from reputable sources, like financial websites and expert advice columns.

Image Credits: unsplash.com

In conclusion, Gen Z has demonstrated remarkable financial acumen by embracing mindful spending, prioritizing utility over branding, adopting the bucket strategy, and using social media as a stepping stone for financial knowledge. Their approach serves as a valuable lesson for all generations to manage money wisely and secure a stable financial future.

Sources: 1 & 2

#1: Change your mindset

Image Credits: Kaplan Genesis

What thoughts do you have when it comes to money? Which of these ideas or feelings are holding you back? Can you reconsider and change them?

Those who identify money with fear may find themselves paying attention to getting out of debt or in a more extreme case – avoid looking at the company’s finances altogether. If that is you, see if you can change that mindset. Instead of fear, embrace your finances with an open attitude and you may probably find more opportunities for learning, wealth building, and growth.

Mr Boolkah believes that our business will grow to meet our level of desire and need. If you’re constantly in a rat race trying to get by, your business is going to reflect that mindset. While thinking about your business and personal goals, you should be able to answer these questions clearly:

Why do you want to succeed?
What kind of life do you want to create?
What greater purpose motivates you?

It’s also essential to dream big and surround yourself with people who share the same mindset. If you can’t find them in your immediate network, search for other entrepreneurs you admire and learn from them. If it helps, invite them to connect on LinkedIn.

#2: Make a plan

Image Credits: Call Centre Helper

Many business owners do not detail budgets and monitor the financial health of their businesses. To know how much money you have now and make accurate predictions about the future, you will need a plan and be disciplined with your money.

Some questions to ponder over:

Does your business have a budget? If so, how closely do you stick to it?
What are your short-term and long-term priorities and goals?
Where should you be spending? Where should you be saving?
When you get off track or circumstances change, where should you take corrective action?

If you’re not so savvy when it comes to financial planning, consider hiring the right person to aid you in this segment. Bringing in an accountant can help your company in creating a budget, managing expenses, and making well-informed financial decisions.

#3: Add more value

Image Credits: JBarrows

If there’s one thing you need to take away from this section, it’s to make your business indispensable to your customers. Instead of demanding more money from your customers for the same amount of work, give some thought about how you can add more value to them.

Questions to think about include:

How can you increase your skills or services to deliver better results?
How can you solve a problem and make their lives easier?

When your service becomes absolutely necessary, that’s when you can charge what you deserve.

Money Management Tips Embraced by Gen Z