Gen Z, the young, growing, post-millennial generation, is set to make up 40% of consumers by 2020. Categorized apart from millennials as those born from 1997 and onward, this younger generation sets itself apart from older ones as free-thinking, hard working, and most importantly, cautious spenders.
Gen Z approach their financial future carefully, taking a lesson from the sometimes extravagant habits of older generations. For millennials in particular, 40% have overspent or even gone into debt just to keep up with their social lives. This “fomo-tax” isn’t on the radar of Gen Z, as they take all purchases into consideration and think them through from groceries to universities. When asked, 72% of Gen Zers say that cost is the most important factor when shopping, and nearly 50% use their phones in-store to compare prices and reach out for advice from family and friends before swiping their cards. Small scale, this can appear frugal?—?but Gen Zers take the whole picture into consideration. Their spending and saving habits translate into a focus on financial responsibility, even at their young age.
Take a look at this infographic for more on the rise of Gen Z, why their habits differ from earlier generations, and how they are confronting their financial fears head-on.