Have you ever thought about what all your smartphone can actually do for you? Generation Z, also known as Gen Z, has taken full advantage of the services it has to offer. Gen Z is now using social media and online search engines to get their finances in order. Recent studies found that fifty four percent of Gen Z holds at least one type of investment, including mutual funds, exchange-traded funds, or even cryptocurrency. These same individuals have also learned how to control their cash flow, cut unnecessary expenses, pay their debt quickly, and even how to raise their credit score. Although these are all topics that should be learned at an early age, this is not always the case.
Gen Z has shown that they are working hard to be financially satisfied and are using technology to make it happen. Social media apps such as TikTok and YouTube have become everyday life coaches for almost everything, including finances. According to a recent study conducted by Qualtrics on behalf of Credit Karma 1, 56% of Gen Z and Millennials intentionally seek out financial advice online or through social media. They have introduced many opportunities that Gen Z were unaware they even had.
When you get your first adult job and start making adult money, but there is no one to guide you on how to spend it, you quickly realize that you may need some help. If you are already having money trouble, you clearly cannot afford to seek help that may cost you more money. Someone along the way realized this and started sharing how to be financially successful on your own. Financial professionals now give advice on online platforms for free. Not only is this information helpful, but it also in small bits and easier to digest. Most of the time it is even entertaining. Research shows that 38.8% of Gen Z have learned about personal finances through TikTok, YouTube, or other social media platforms and 7.2% said they did their own research online. Only 22% stated that they had learned from their parents or another family member.
The best part is you can do all these things you are learning from the device you are learning them on. There are many apps that help budgeting, paying bills on time, and keeping track of your credit score. You can now even open an investment account directly from your smartphone. All you have to do is download an app, add your information, and deposit your funds. They make it too easy! From there you can personalize all your investments. Although the account is easy to setup, actually investing and managing it is another story. So, how are they choosing their investments?
Yep, that’s right. They use what they have found on their online platforms. Gen Z takes information from strangers to manage their investment portfolios and doesn’t even question it. That does not mean that they do not care though, Gen Z tends to be very hands-on and active in their investments. According to an article on Nasdaq.com, 48% of Gen Z investors check their portfolios multiple times a day and 24% check their portfolio at least once per day. Unlike generations before, Gen Z has taken it upon themselves to do research and find their own way to earn money. This has been much easier and hands-on since technology makes it all possible.
Starting to invest at an early age only means you have room for more risk and growth. As their account grows and they feel like it has outgrown their knowledge, they will be financially stable enough to seek professional help, such as a CERTIFIED FINANCIAL PLANNERTM. The convenience of technology has made becoming wealthy a bit easier and so much more convenient.
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