The lessons from the COVID19 pandemic gave everyone a different experience – the economy drastically changed, as living costs were raised and many employees felt dissatisfied because of stagnating wages which resulted in huge rates of unemployment.
However, when it comes to personal finance, the younger generation who are well-immersed with technology have been struggling to save up for their future, mainly because most of their salaries are spent paycheck-to-paycheck, which can be harmful in the long run.
Learning the value of managing your money can help Gen Z employees take better care of their financial goals, whether they want to save up for their retirement or they just want to live a comfortable life, wealth management can definitely come in handy.
Why the younger generation is struggling to manage their wealth
Managing resources is very important for every generation – whether it’s handling your personal finances or distributing your assets properly, wealth management can offer long-term benefits when done right.
With that said, bad spending habits left unchecked can actually lead to future financial trouble because you can go bankrupt, especially for people who haven’t yet figured out how to settle and manage their resources for the time being.
An annual survey conducted by Deloitte revealed how the younger generation Gen Z and Millennials have handled their money during the past few years, where the report showed that nearly half of young employees live from paycheck to paycheck because of circumstances.
Many of them are struggling to keep up with the rising costs of living and the constant stagnation of wages, as the report also showed that about 3 in 10 Gen Z employees do not feel confident about retiring and living with financial assurance.
To alleviate their financial worries, the report showed that about 4 in 10 Gen Z employees have taken up a secondary part-time or a full-time job as a means to make up for the high costs of living, while the figure goes down to 3 in 10 employees for Millennials.
How Gen Z can improve their wealth management
Learning wealth management can prove useful for people who are just starting out to save their money – especially for the younger generation who have not yet figured out how to develop their personal finance.
Build up on your personal savings overtime. In order to attain stability, younger employees can learn to build up their personal savings slowly. Handling personal finances can be hard, especially during a time when everything is inflating and there’s no financial guarantee. It’s true that not everyone can really build up their savings, but if you have some extra leftover from your last paycheck and you don’t really have anything to do with it, you can put it over your personal savings. Doing this overtime can really help you manage your money.
Make use of financial services and apps. Gen Z employees are used to having technology all their lives. Most of them are already familiar with applications and machinery designed to help improve their decision making.
Having tools at your disposal can definitely help you manage your money and handle your resources properly. Making good use of financial services and apps might just teach you a thing or two about wealth management.
Plan a good investment project. Having a good financial project like investing in small projects and opening up a path to a retirement account can definitely help you push your wealth management up to the task. Even if your ability to invest may be limited for now, contributions to investment accounts can still help you generate extra income.
Start saving up as early as possible. The sooner you start saving up your wealth and assets, the longer time your money can grow and develop. Zoomers can save up more of their time and money if they start saving as early as they can. This can definitely give them an advantage in managing their wealth and resources properly.
Stay informed about current world trends. A good way to learn wealth management and financial education is to stay informed about the ongoing trends globally. World trends can help you adjust your spending habits and financial decisions, as the global economy usually has a huge impact on finances and costs of living. Staying put with current information can definitely help you make the right investment decisions.