Gen Z, the young, growing, post-millennial generation, is set to make up 40% of consumers by 2020. Categorized apart from millennials as those born from 1997 and onward, this younger generation sets itself apart from older ones as free-thinking, hard working, and most importantly, cautious spenders.
Gen Z approach their financial future carefully, taking a lesson from the sometimes extravagant habits of older generations. For millennials in particular, 40% have overspent or even gone into debt just to keep up with their social lives. This “fomo-tax” isn’t on the radar of Gen Z, as they take all purchases into consideration and think them through from groceries to universities. When asked, 72% of Gen Zers say that cost is the most important factor when shopping, and nearly 50% use their phones in-store to compare prices and reach out for advice from family and friends before swiping their cards. Small scale, this can appear frugal — but Gen Zers take the whole picture into consideration. Their spending and saving habits translate into a focus on financial responsibility, even at their young age.
Take a look at this infographic for more on the rise of Gen Z, why their habits differ from earlier generations, and how they are confronting their financial fears head-on.