- A new WalletHub survey found that 34 percent of Gen Zers don’t think their parents set a good financial example for them, a larger share than in any other generation.
- Gen Z is also the least financially confident generation in the country.
- While Gen Zers don’t think their parents set a good example, 39 percent prefer a family member as their go-to source for financial advice.
Gen Z is disappointed with their parents’ money management.
A new WalletHub survey found that 34 percent of Gen Zers do not think their parents set a good financial example for them.
This has contributed to Gen Z feeling insecure about their own ability to manage their finances — more than 1 out 4 Gen Zers say they are not confident in their financial knowledge and skills, according to the survey.
It appears that Gen Zers are cautious when it comes to money due to this lack of confidence in their ability to handle finances.
The survey found that 57 percent of Gen Zers thinking putting their money in a savings account is the best way to invest their money.
This could be due to what Gen Zers saw their parents go during the stock market falls that occurred after 9/11 and during the 2007-2009 Great Recession, according to Kim Gieck, an accounting and finance instructor at Central New Mexico Community College.
“Or it may also be a lack of understanding of stock market history and the long-term commitment needed—or both,” said Gieck.
Although Gen Zers seem to be cautious with their money, many don’t budget.
WalletHub’s survey found that 30 percent of Gen Zers don’t have a budget for managing their monthly expenses.
In class, Gieck’s Gen Z students will often say they understand the importance of budgeting, but starting the budget and managing it is the hard part, she told WalletHub.
“I liken budgeting to dieting. There are hundreds of dieting methods. But there is no such thing as a one-size-fits-all diet,” Gieck said. “It takes a level of self-awareness to know what motivates us to start and stick with something.”
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