Born between the mid-1990s and early 2010s, Generation Z is now actively entering the workforce, looking for financial stability. A recent study by Bank of America has shed light on unique financial priorities that Gen Z holds dear. However, many financial challenges can stand in the way.
Here are eight financial goals of Gen Zers and how professional debt management can help get them there.
1. Furthering their education. Gen Zers understand that education is essential for success in the modern workforce. Many are pursuing careers in STEM fields, which require a high level of education and training. However, the cost of education, particularly loans, can lead to significant student debt burdens.
2. Advancing their career/salary. Ambitious and wanting to achieve financial success, Gen Zers are more likely to job hop than previous generations while they look for opportunities to advance their careers and earn a higher salary.
3. Getting a new job. Gen Zers aren’t afraid to change their careers if they’re not happy with their current job. They’re also more likely to start a business.
4. Saving for retirement. Gen Z will need to save for retirement for a longer period than previous generations. They’re also more likely to prioritize saving for retirement early in their careers despite mounting debt concerns.
5. Travelling. Valuing experiences over material possessions, Gen Zers are more likely to travel and explore new cultures.
6. Buying a car. A car is still an essential asset for many Gen Zers, especially those who live in rural or suburban areas. However, Gen Zers are also more likely to buy less expensive vehicles and use alternative transportation options, such as public transportation or ride-sharing services.
7. Building good credit. Gen Zers understand the importance of good credit. They’re also more likely to use credit cards responsibly and pay their bills on time. However, inflation, student debt and housing costs can force many young people to use credit cards or lines of credit to make ends meet, making debt management difficult.d
8. Purchasing a home. With lower interest rates, housing prices have risen dramatically. With current mortgage interest rates in the 7% range, it has become, for many, an impossibility to purchase a home in the short term. Gen Z will need to focus on saving and accumulating a down payment for any purchase. This is one of the major challenges, in our opinion, facing Gen Z.
How Professional Debt Management Can Help Gen Zers
Many Gen Zers are struggling with student debt, credit card debt, or lines of credit. These debts make it difficult to save for a down payment on a house, contemplate starting a business, or make decisions in planning for their financial future.
These are challenging times. As a licensed insolvency trustee (LIT), we can help Gen Zers in developing a debt management plan to improve their financial situation. A LIT can assist in providing advice for debt options, negotiating with creditors, and creating a budget within the context of available income.
Debt Management and Credit Counselling In Ottawa
At D. & A. MacLeod Company Ltd., we can review and assist by suggesting ways of managing debts, including student debt and, if needed, credit counselling services to help you budget and plan to reach your financial goals, no matter your age or circumstances. Contact us today to book a virtual appointment with a licensed insolvency trustee or at one of our convenient locations.