Generation Z comprises an amazing group of people. They are bright, have a positive approach to life and are aware of the world around them. They are also great with technology. In fact, working with technologies related to ICE (information, communication, and entertainment) seems to come naturally to them. But Gen Z is so much more than fun and amusement. They are highly health conscious and open to learning about financial management from an early age. So, here are 5 financial habits that this generation may wish to imbibe.
The internet and smartphones have provided easy access to information of all kinds from anywhere and at any time. The first thing this new age generation needs to do is to become financially literate and gather information about the various funding options available to them. They have to deal with the stress of taking and repaying loans for funding their higher education, getting a job, dealing with all the expenses associated with independent living, and a lot more. In such a scenario proper knowledge about the eligibility for a personal loan or an education loan will prove to be quite useful.
Savings have been and will remain the mainstay of effective financial management. Every individual whatever age he/she may be should keep aside a specific proportion of their earnings for the future. The importance of saving and the benefits available due to them cannot be ignored by this generation. And the key is to start early, maybe from the first month of their earning.
Curb Impulsive Buying
Retail therapy works wonders! While that’s true, it’s a good idea to not be overly impulsive. Of course, at times, we’d love to buy a shirt that caught our fancy and that’s okay to do. For more expansive purchases, some financial prudence becomes necessary. It’s a great habit to allocate a small amount of money for impulse purchases and not exceed that.
Keep Track of Online Transactions and Card Usage
In this era of online transactions, keeping track of the amount spent on purchases or making payments is essential. Credit card usage has to be tracked regularly and the payment of due bills can be automated to avoid unnecessary delays and imposition of penalties. This will prevent them from going overboard and falling into a debt trap.
Choosing the Right Funding Option
Easy access to a lot of information should be used by the internet generation to do research, compare and then finalise a funding option for their higher education or buying a home. They need to know about the pros and cons of using credit cards, the procedure for making an instant personal loan application and the cost of taking an education loan, and so on. This will help them make the right decision.
Gen Z is still young, and this is just the right time to develop some good financial habits. Kudos to this generation for already thinking about it seriously.