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Generation Z are in for a rude awakening when it comes to their finances.
Most Gen Zers grew up during a time of economic prosperity, and many of them lack the financial literacy needed to recognize the realities that await them if they don’t heed some important advice.
Unfortunately, many young people have been lured by promises of quick riches from new apps or exotic investments and are unaware of the true cost behind certain choices, often leading down a path marred with debt and poor investments.
In this article, we’ll explore why it’s so important for Gen Zers to understand basics such as budgeting, saving money, investing long-term and much more.
By taking these financial steps now while you’re still young, you’ll set yourself up for long-term success instead of ending up buried under an avalanche of debt later on!
#1. Most Think They Don’t Need A Resume
61% are not concerned with creating a resume because their degree will be enough to impress employers.
#2. No Entry-Level Jobs
Of those surveyed, 61% also believe they won’t have to work entry-level jobs.
Instead, employers will immediately see their potential and offer them senior-level jobs.
#3. Business Majors Are Most Out Of Touch With Salary Expectations
Business majors have the most unrealistic expectations regarding starting salary when breaking down the data by major.
They are followed by nursing students, those obtaining a liberal arts degree, and political science majors.
#4. Gen Z Will Compromise On Starting Salary For Other Perks
Asked if offered a lower starting salary with additional workplace perks, Gen Z responded as follows:
- 48% want a good work-life balance
- 43% want great benefits
- 41% want flexible hours
- 40% want the job in a desirable location
#5. Most Don’t Think They Can Afford To Live
When informing the students taking the survey that the average starting salary is $55,911, over one-third (34%) don’t think they will be able to afford basic expenses on this income.
#6. If Forced To Take A Low Salary, Gen Z Says This Will Happen
When asked if they had to take the average starting salary of $55,911, the students responded as follows:
- 37% would have to work a second job
- 33% would not be able to repay their student loans
- 27% would go into credit card debt
- 19% would have to move back in with their parents
#7. Gen Z Expects To Make 52% More In Starting Salary
The average starting salary is $55,911, but Gen Z expects to begin their career earning a whopping $84,855.
#8. 97% Will Work For Less Money, But With A Catch
Most students (97%) said they would work for less money, but the lowest would be $72,850.
#9. 70% Say They Deserve More
Nearly two-thirds of students say they deserve a higher starting salary because they work harder than their peers.
Additionally, 64% say they deserve more because they are more intelligent than their peers.
#10. Their Major Guarantees Them A Job
72% of Gen Z think that majoring in a high-demand field will guarantee them a job right after graduation.
Steps to Take For Financial Security
So with all the bad news, what can Gen Z do to set themselves up for a life of wealth?
It starts with understanding values and spending money on these things.
Sure having the latest tech gadget or shoes is nice, but if they bring you no joy, then why spend the money?
You’d be better off spending the money on a vacation or something that will bring happiness.
So the first, and most important step for this generation is to get over the FOMO that is running rampant and spend wisely.
From there, they need to make saving and investing a priority.
Just doing these two things will help their finances tremendously.
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Do you enjoy movies and documentaries? If so, here are the best ones that are related to money.
All of them will keep your attention from start to finish, and who knows, you might actually learn something too!
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Do you want to make more money? Of course you do! Sadly, most people wait until their review to ask for a raise and are disappointed when the answer is no.
A better solution is to follow a plan that ensures you get a raise of 5% or more.
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Did you know there are places you can pay for things using a special local currency? Do you know why some coins have ridges on the sides? Discover over 60 fun money facts that you didn’t know.
Slash Your Monthly Bills
With inflation rising, your monthly bills are likely getting out of control.
Luckily, there are some simple steps you can take. Use this guide to help you save up to $7,000 a year on your monthly bills.
47 Ways To Get Free Gift Cards
Nowadays, people are looking for every means possible to make extra cash. One unique idea is to get free gift cards. Gift cards are a great way to help pay for the things you need without spending any money.
You can earn free gift cards for completing simple tasks in many ways. This includes getting paid for simple online tasks like playing games, completing surveys, and shopping.
Here is a complete guide on how to get free gift cards so you can spend less money on the things you buy.
The data for this article can be found here.
I have over 15 years experience in the financial services industry and 20 years investing in the stock market. I have both my undergrad and graduate degrees in Finance, and am FINRA Series 65 licensed and have a Certificate in Financial Planning.
Visit my About Me page to learn more about me and why I am your trusted personal finance expert.