The financial insights we can all gain from Gen Z

BY OSASU IGBINEDION-OGWUCHE

Generation Z, born between the mid-1990s and early 2010s, is renowned for its tech-savviness, social consciousness, and adaptability. However, what sets them apart extends beyond these traits – it’s their distinctive approach to finance. After observing their financial habits and perspectives, I’m convinced that there are invaluable lessons about money management that we can all learn from Gen Z.

• Embracing Technology for Financial Success

Gen Z, having grown up in the digital age, fully embraces technology for productive financial ventures. They employ applications and online tools for knowledge acquisition, income generation, budgeting, saving, and investing. For instance, consider the case of Mr. Beast, a 25-year-old YouTuber who earned a staggering $54 million in 2021 by leveraging technology. Gen Z teaches us the importance of not just embracing technology but also strategically utilizing it to achieve financial freedom.

• Prioritizing Financial Education

Many Gen Zers prioritize financial literacy, utilizing their smartphones for productive purposes. They recognize that education is the cornerstone of informed financial decisions, consuming articles, YouTube videos, audiobooks, and other resources to expand their knowledge on finance, technology and whatever piques their interest or curiosity. Their emphasis on financial education underscores the importance of continuous learning in managing our finances effectively.

• Early Focus on Saving and Investing

Gen Z places a strong emphasis on saving and investing from a young age, even discussing early retirement as teenagers. Their recognition of the power of compounding underscores the importance of starting to save and invest early for a more secure financial future. It reminds us that the sooner we begin, the greater our financial prospects.

• The Entrepreneurial Spirit

Gen Z doesn’t rely solely on traditional employment, often questioning the value of a 9-to-5 job when they can leverage technology to create lucrative income streams. They excel in various fields like social media influencing, freelancing, and entrepreneurship. Gen Z teaches us about adaptability and the significance of diversifying income sources in today’s dynamic job market.

• Socially Responsible Investing

Gen Z demonstrates a strong sense of social responsibility by aligning their investments with their values, focusing on environmental, social, and governance (ESG) factors. They highlight that investments can generate returns while making a positive impact on the world, emphasizing the importance of both profit and impact in investment decisions.

• Debt Avoidance and Responsible Borrowing

Unlike previous generations, Gen Z is cautious about debt, including student loans and credit card debt. They manage their financial obligations prudently, emphasizing responsible borrowing. Their approach challenges societal norms and stereotypes, showing us the importance of charting our own financial course and avoiding expenses that do not align with our long-term financial freedom goals.

In conclusion, Gen Z’s financial approach offers valuable lessons for all generations. Their mastery of technology, commitment to financial education, early savings and investments, entrepreneurial spirit, socially responsible investing, and responsible borrowing serve as guiding principles for financial success. By incorporating these lessons into our own financial practices, we can enhance our financial well-being.

Osasu CEO, TOS TV NETWORK, a pan-African storytelling platform and co-founder of Natsu Global, a real estate and media firm.