The generation is working and winning. This is where your money goes.
While there are many Internet memes that criticize the new millennial lifestyle, many people forget that this age cohort is already entering its middle-aged years. In fact, there is already a new generation in its twenties, which are beginning to have an increasing influence on global culture and economy: Generation Z. And we are going to analyze your spending habits and financial practices right here!
Basics of the Z generation
Do you know how much purchasing power Gen Z has annually? Prepare for this: a whopping $ 45 billion. That's right, these are far from being babies living on their parents' dime. If you look at this demographic, you will find that your daily habits increasingly influence marketing and brand; which makes it worth exploring.
So how is the group that has followed millennials? Well, first and most obviously, they are young. And unlike millennials, they are less afraid of spending money on a whim; But they are still experts in maintaining a solid bank account. It seems that millennials focus on financial education for your teenagers It was worth it. However, they more or less want to do the opposite of the millennial generation full of student debts; which is not bad in itself.
To understand how and why members of Generation Z spend their funds, let's take a look at how and why they buy things, and how their habits differ from millennials in that regard.
Now, let's analyze what they buy or plan to buy and how these habits vary from millennials. First, Generation Z has a certain general sense of pride in owning things. Unlike millennials who are used to rent and lease everything; Generation Z wants to own their own car and even a home in the future. As this is a group that was born between 1995 and 2010, these are quite high aspirations.
But that is definitely a general trend in its generation, since an automotive study on Generation Z revealed that more than 90% of them have or plan to have their own vehicle. In fact, just by owning a car, many of them would sacrifice relative luxuries like new clothes or a new cell phone.
As you can imagine, Generation Z likes hybrid cars and is more concerned with the environment. But there is another thing they value more: the price. More than 75% of Generation Z believes that the price of the car is the most important aspect of their purchase decision; compared to 70% among millennials when they were the same age. In fact, Generation Z definitely looks like a more realistic generation; Studies show that most of them would buy an electric car more to save money on gas than to save the planet from global warming. However, above all, safety comes first: Generation Z values it more than the millennium generation and baby boomers combined.
When it comes to specific brands, Generation Z does not have much bias; although Honda, Chevrolet and Ford remain preferred only for their traditional stellar reputation.
If you read the previous paragraph and deduce that owning a car is a big problem for Generation Z; You will be even more impressed with your owners aspirations. In other words, although most members of this demographic group are not even old enough to rent a house; Many of them aspire to have one in the future.
A little more than half of the people of Generation Z would rather save to buy a house than rent one. And we are talking about young adults who are just beginning in the world of business and their careers. However, the abundance of new job opportunities related to the Internet makes this aspiration relatively realistic. Many of them work as freelancers, managing their own customers without having a traditional desk job in a company.
Remember, this is the first generation that was practically born in the world of high technology; so that they know any type of device or software "computer". Given that, it is not surprising that they can find houses to rent faster than most people. They also submit the majority of rental housing applications compared to all other generational cohorts.
It is important to remember that, as many people in Generation Z want to have and own things; Actually, at least for now, they don't really have that much. A large part of this demographic has not even finished high school as of 2020, so their preferences are much more a wish list than a specific set of goals.
But even though most of this generation still does not live alone; They still have a surprisingly large level of influence on their household budgets. In fact, most parents of Generation Z admit that their children have a great practical influence on how the family spends their collective money; more than millennials had about their parents.
In conclusion, it is quite easy for many sociologists and other experts to dismiss Generation Z as not influential at this time; especially because they are still very young. But most of these experts are forgetting that millennials used to be treated with the same contempt for their elders. And while they are young, there are clear signs that members of Generation Z will have a decisive role in global society in the coming decades. For example, they will represent up to a quarter of the US population. UU. In 2020. Given this demographic change, it is imperative to further explore the financial habits of this generation.
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