How Gen Z is Changing the Rules When it Comes to Personal Finance

August 14, 2024

If there's one thing we know about Gen Z, it's that they don't conform to the rules of generations past. And their "we do it our way" mantra rings true in one of the most important areas of life: personal finance. From sparking the rise of #fintok to #sidehustle culture, this generation has been dubbed as one of the most financially mindful. But it's not necessarily the method of how they get or share financial information that makes them groundbreaking-it's simply the fact that they talk about finances at all.

And spoiler alert: their openness to talk about all things money-related makes a lot of people uncomfortable. Still, nothing seems to be off the table-from salary disclosures to investing hacks-but why are other generations so hesitant? While getting financial advice from self-proclaimed gurus on social media is often not recommended, there's something refreshing about the uptick in conversations around the topic. According to a recent MarketWatch Guides survey, GenZ (93.3%) is far more willing to talk to their friends about finances than other generations, with a third (33.3%) claiming they do so all the time or frequently.

There are also differences regarding financial insecurity, attitudes about money, banking practices, types of accounts used, and how to manage unexpected expenses. For example, Gen Z and Gen X are more comfortable asking friends or family for money, while millennials prefer using savings or a credit card to cover unexpected expenses.

No matter what, financial literacy is important for a successful future. And, of course, you can't believe everything you hear-especially when it doesn't come from a professional-but hopefully the simple act of talking about finances can inspire people to take more control of their economic well-being. Perhaps hearing about how a friend received a debt consolidation loan, which helped them streamline payments and pay off their debt sooner, inspires you to explore what financial path is right for you. Similarly, discovering how a neighbor funded an unforeseen expense or a home improvement project with a small personal loan could provide valuable insight for future rainy days.

Every generation has its way of approaching money and personal finances. Regardless of the topic, the more everyone talks about finances and educates themselves, the more likely it can lead to improved financial literacy and overall savviness. As with all advice, always fact-check and, as a good rule of thumb, if it sounds too good to be true, it probably is.

DISCLAIMER- This content is for informational purposes only and is not intended as advice. Enova and its affiliates do not provide financial, legal, investment or tax advice.

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