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Want to save more money, make smarter investments, or get out of debt? See which types of financial advice are most in-demand from Gen Z — and where to get it. [[{“value”:”
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Every generation of young adults has to deal with a lot of big changes in their lives as they start careers, pay bills, and enter the “real world” of adulthood. Gen Z is the youngest generation in the workforce today, and they are facing a few special challenges. This generation has been hit hard by COVID-19, rising interest rates, and high housing costs, and often feels gloomy about their future prospects to save enough money to retire.
But the good news is: Gen Zers are also getting proactive about looking for good financial advice and information. A recent survey from Citizens Bank showed which types of financial advice are most in-demand from Gen Zers.
Let’s look at which financial advice Gen Z wants most — and how to get it.
1. Budgeting advice (55% of Gen Z)
The Citizens Bank survey found that 55% of Gen Zers would like to get budgeting advice to help meet their financial goals. Some young people are getting budgeting ideas and inspiration from TikTok and other social media, like the much-discussed “loud budgeting” trend.
TikTok budgeting advice is actually pretty useful sometimes. But another idea for easy budgeting help is to sign up for a budgeting app. The best budgeting apps can help you easily track your spending, see where your money goes, and make better-informed decisions about how to spend and save.
2. Investment advice (52% of Gen Z)
If you’re already saving for retirement, you might wonder how to invest your 401(k) money. More than half (52%) of Gen Zers surveyed said they would like to get investment advice. Investing can be complicated and risky. This is one area in particular where you should beware of the advice you see on TikTok. If someone in a viral video is giving you aggressive sales pitches for buying stocks, that’s not likely going to be a winning plan for your long-term wealth.
Where should Gen Z look for investment advice? Start by keeping it simple. If you’re in the early stages of your career and don’t have much money saved yet for retirement, that’s OK! Use a target date retirement fund (if you have access to one) to invest automatically in a diversified mix of stocks and bonds based on your age.
If you have enough money invested to afford financial advisory services, look for a fiduciary financial advisor like a Certified Financial PlannerTM. “Fiduciary” means that these people are not just selling you something — they have a professional ethical standard to act in your financial best interest. Some major brokerages, robo-advisors, and investment firms also offer low-cost access to financial advisors.
3. Managing spending habits (50% of Gen Z)
In a time of high inflation, at a stage of life when it’s fun and important to go out and spend time with friends, Gen Zers often feel pressured to spend “too much” on socializing, restaurant meals, and expensive travel. Half of Gen Zers surveyed said they would love to get financial advice for managing their spending habits. This Gen Z urge to control their spending can also be seen in the “cash stuffing” trend on TikTok.
But you don’t have to shift to a cash-only lifestyle to manage your spending. Another option is to use banks that offer special sub-accounts for saving and spending goals. Ally Bank has “spending buckets” so you can move money within your checking account for specific purposes. SoFi Checking and Savings accounts also offer a similar feature called “Vaults.”
It feels good to know you have enough money ready to spend on a vacation, your monthly rent or car payment, or any other purpose. This can help you spend more confidently — and save along the way.
4. Savings analysis (44% of Gen Z)
44% of Gen Zers told Citizens Bank they would love to see advice about “savings analysis.” Knowing how much to save (and if you’re on track for big goals) can be empowering! Do any of these savings questions sound familiar to you?
“Am I saving enough for retirement?””How long until I have enough saved for a vacation?””If I save $75 more per month, how much will I have in two years?”
Some banks, like Ally, offer free smart savings tools to help you calculate and visualize your savings progress. The best budgeting apps can also help you allocate money toward specific financial goals. Or you can use The Motley Fool’s Foolish Calculators to see how your savings can grow — for an emergency fund or retirement.
5. Debt management advice (33%)
Many young adults are at the very early days of their working lives and not yet making much money. When you’re young, it can be all too easy to overextend financially and end up with credit card debt. Debt management advice was mentioned by 33% of Gen Zers in the survey as a type of financial help they would love to get.
One of the best ways to get out of credit card debt is to use a debt payoff app. These apps can show you how much you’re spending, how to find more room in your budget to put extra money towards paying off debt, and which debt payoff strategy to use to accelerate your progress.
If you’re in serious debt and having trouble making payments, you might need a higher level of help. Consider talking with a nonprofit credit counseling agency.
Bottom line
It’s good that Gen Zers are reaching out for financial advice. There are many useful budgeting apps, built-in bank account features, and reputable services available to help you save, invest, and spend more wisely.
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