15 Smart Money Moves Gen-Z is Making in 2024
Gen-Z is leading the way with some impressive financial habits. From creative budgeting strategies to innovative ways of saving and investing, they are mastering money management in ways previous generations never thought of. Here are 15 smart money moves Gen-Z is making this year that are shaping their financial futures.
1. Embracing Side Hustles
Gen-Z is all about diversifying income streams, and side hustles are a popular way to achieve this. From freelancing and gig economy jobs to monetizing hobbies like photography or crafting, they’re finding creative ways to earn extra money. Platforms like Fiverr, Upwork, and Etsy make it easier than ever to turn skills and passions into profit.
2. Investing Early
Unlike previous generations, Gen-Z is starting to invest at a younger age. They’re using user-friendly investment apps like Robinhood, Acorns, and Stash to get started with low initial capital. By taking advantage of compound interest, they’re setting themselves up for long-term financial growth.
3. Prioritizing Financial Literacy
Gen-Z understands the importance of financial literacy and actively seeks out knowledge. They utilize online courses, financial blogs, and YouTube channels dedicated to personal finance. Apps like Mint and YNAB (You Need A Budget) help them track spending and manage budgets effectively.
4. Embracing Cryptocurrency
Gen-Z is more comfortable with cryptocurrency than any previous generation. They’re investing in Bitcoin, Ethereum, and other digital currencies, seeing them as both speculative assets and potential future mainstream currencies. Platforms like Coinbase and Binance make trading and managing crypto accessible and straightforward.
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5. Leveraging Social Media for Financial Advice
Social media is a treasure trove of financial advice for Gen-Z. They follow financial influencers on Instagram, TikTok, and YouTube who offer tips on saving, investing, and budgeting. This accessible, relatable advice helps them make informed financial decisions.
6. Supporting Sustainable Brands
Gen-Z prioritizes ethical consumption and supports sustainable brands. They’re willing to spend a bit more on products that align with their values, understanding that investing in quality and sustainability can lead to long-term savings and a positive impact on the planet.
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7. Utilizing Cash-Back and Reward Programs
Cash-back and reward programs are a hit with Gen-Z. They use apps like Rakuten, Honey, and Dosh to earn money back on everyday purchases. Credit cards with rewards for spending categories that match their lifestyle, like travel or groceries, are also popular choices.
8. Practicing Minimalism
Minimalism is a lifestyle choice that many Gen-Z individuals embrace to save money. They focus on purchasing only what they truly need, reducing wasteful spending, and avoiding the clutter of unnecessary items. This mindset helps them save money and reduces the temptation of impulse buying.
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9. Embracing the Sharing Economy
The sharing economy is second nature to Gen-Z. They use services like Airbnb, Uber, and Zipcar to save money on travel and transportation. Renting or sharing items like clothing, tools, and tech gadgets is also common, maximizing utility and minimizing costs.
10. Pursuing Higher Education Alternatives
Instead of automatically opting for traditional four-year degrees, Gen-Z is exploring alternative education paths like coding bootcamps, online courses, and trade schools. These options often come with lower costs and quicker entry into the workforce, reducing student debt burdens.
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11. Using Budgeting Apps
Budgeting apps are essential tools for Gen-Z to keep their finances in check. Apps like Mint, PocketGuard, and Goodbudget help them track income, expenses, and savings goals in real-time. This proactive approach to budgeting helps them stay on top of their financial health.
12. Negotiating Salaries
Gen-Z is not afraid to negotiate their salaries and benefits. They understand the importance of knowing their worth and advocating for themselves in the workplace. By doing research and being prepared to discuss compensation, they ensure they’re fairly compensated for their skills and contributions.
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13. Prioritizing Emergency Funds
Building an emergency fund is a top priority for Gen-Z. They aim to save three to six months’ worth of living expenses to cover unexpected costs like medical bills or job loss. This financial safety net provides peace of mind and prevents reliance on credit in emergencies.
14. Planning for Retirement Early
Retirement planning starts early for Gen-Z. They’re taking advantage of employer-sponsored 401(k) plans and opening IRAs (Individual Retirement Accounts). By contributing regularly and maximizing employer matches, they’re setting themselves up for a comfortable retirement.
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15. Engaging in Peer-to-Peer Lending
Gen-Z is exploring peer-to-peer lending platforms like Lending Club and Prosper as both borrowers and investors. These platforms offer an alternative to traditional banks, providing potentially lower interest rates for borrowers and higher returns for investors. It’s a modern approach to personal finance that aligns with their tech-savvy nature.
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