Top Gen Z money fears + how to combat them
Last updated on 5th January, 2024 at 12:13 pm
According to Deloitte’s Global 2022 Gen Z and Millennial Survey, more than a third of Gen Zs chose the cost of living as their greatest concern in life. Long-term financial health, the welfare of their family, career or job prospects, day-to-day finances, and physical and mental health, also top the list of things contributing to their feelings of stress.
Reading time: 3 minutes
In this article you’ll learn:
- About the money fears Gen Zs face, and the top factors contributing to their stress.
- The role you play in helping your Gen Z combat their money fears, and tips to do this.
- How your Online Education by Boston benefit can help your child prepare to further advance their education.
If most of us feel the after-effects of the pandemic, a youth unemployment rate of around 60% and the lived reality of black tax, it makes sense that as Gen Z enters the job market, it impacts them more acutely.
Gen Z, as the first generation of true digital natives globally, is, in South Africa, a group known as the ‘born-frees’ that includes a subset of teens and young adults born in the mid-90s until the time around the soccer World Cup we hosted in 2010.
Gen Z money fears and their health
Dr Siya Mjwara, a therapist and wellness coach who works with many Gen Z clients, says that financial stressors come up frequently [in her sessions], especially for those who financially support their parents and/or extended family.
“Adolescents and teenagers are mostly worried about not ending up like their parents,” she comments. “This is common mostly among those who have parents who are struggling financially or who lost jobs, businesses or income (especially during the pandemic). This is usually how various financial traumas develop or show up.”
One parent, Zinhle Tshabalala*, is determined not to fall into this trap. She says, “I have two children and one is a Gen Zer. The most important lesson for me is not to transfer my money anxieties onto them as they start their own financial education.”
The importance of supporting as a parent
Danelle van Heerde, head of advice solutions at SanlamConnect, says, “Many people consider [discussing finances] taboo, and when they do talk about money, it is often about spending it, rather than managing it.”
Dr Mjwara suggests parents provide a kind of financial education to their children even before they begin interacting with money or currency. “The minute money lands in a child’s hand, they should be in a position to make wise financial decisions such as whether to spend, save or grow that money and how to do that,” she says.
Take these steps to break the taboo of talking about money.
Danelle’s tips for helping combat Gen Z’s money fears
- “Help them think about the best way they can prepare themselves for financial security and success – tertiary education and training in specialist skills increase opportunities for employment or starting a business.”
- “Ask your Gen Z to keep a spending diary for a month or two so they can understand where their money is going every month. Review this critically to create a realistic budget that leaves room for them to put aside some money for shorter and longer term savings.”
The Sanlam Reality Wealth Sense portal has various tools and calculators that you and your child can use to grow each of your financial confidence, like this easy savings calculator.
- “Encourage them to live within their means. Looking at what other people spend their money on and using that as a motivation for their own spending is a recipe for disaster, especially because they probably have no idea about their friend or favourite personality’s real financial state.”
- “Distinguish between ‘good’ credit and ‘bad’ credit. ‘Good credit’, like student loans, home loans or car loans, will help them improve their financial situation. ‘Bad credit’ is typically short-term with high interest rates used to purchase items that they should rather save for.”
Help your child prepare for tertiary education and a life of financial confidence with a world-class high school education. As a Sanlam Reality member, access discounted Cambridge homeschooling (grade 10 – 12) or free supplementary CAPS support (grade 8 – 12) with your Online Education by Boston benefit.
*name changed.
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