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Deconstructing Generation Z’s Financially Savvy Culture

oleg ivanov 1175721 unsplash

oleg ivanov 1175721 unsplash


Generation Z is emerging into the consumer market as one of the most financially savvy generations thus far. Forbes reports that Gen Z is projected to be the largest generation of consumers by the year 2020, accounting for $29 to $143 billion in direct spending. While demographics below the age of thirty still struggle with managing certain fiscal facets such as credit cards, Gen Z seems to be bursting out the gate with tenacity and unmatched financial pragmatism. This emerging trend of a rising youth conscious of their monetary stability can be traced to several integral cultural influences.

Effects of the Recession

The 2008 financial recession had an immense impact on the growing perception Generation Z had for what it meant to be financially stable. Maturing in households where ergonomics became prioritized, Generation Z is incredibly cautious of how funds are allocated. As children, Gen Z witnessed first hand the debilitating consequence of poor financial management and how financial irresponsibility can lead to the collapse of one’s lifestyle. This concern for the future has shaped Generation Z into responsible savers and driven earners. The “Generation Z and Money Survey” conducted by TD Ameritrade Holding Corporation in 2014 revealed that 47 percent of Gen z respondents said if given $500, they would save it for nothing in particular. 34 percent stated they would save it for college, making a cumulative 84 percent declaring they would save the supplemental income.

Connection with Technology

Generation Z was born into a world where accessible information is ubiquitous. This early exposure to the free spread of information on the internet has made this upcoming generation conscious of their buying power and how to monitor it. Nearly 50% of Gen Z consumers use their phones in-store to compare prices while shopping. Even then, most individuals of the iGeneration are accustomed to shopping online, where they feel in control of their actions while browsing and purchasing. Generation Z is no stranger to putting a variety of digital tools to use when researching products and managing their cash flow. Despite having the reputation of being bound by an excessive amount of screens, usually up to five at once, this tech savvy generation is immersed in the navigation of technology to a point that’s unparalleled. Accustomed to being engaged with their products, Gen Z is extending their skill for micro-management by expressing meticulous care over their savings and cash flow.

Digital Spending

At least three quarters of Gen Z spenders consider their debit cards to be an essential form for executing monetary transactions. The emergence of paying services such as Google Pay, Apple Pay, and other digital wallets indicate that the standard for daily transactions is entirely paperless. Convenience has become a priority for Gen Z consumers, as they want round the clock access to their funds, both for consistent monitoring along with access for spending. While this paperless flow of currency may seem liable to encourage misinformed spending habits, Generation Z has demonstrated that they are more than equipped to manage their flow of income, regardless of the mode it’s accounted for.

Generation Z is proving themselves to be the most fiscally conscientious iteration of consumers yet. With a cautious outlook and expectation for technological convenience, this emerging generation will have a tremendous impact on the future of commerce and spending culture.

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