Money Woes For A Young Generation

1 In 4 Gen Zers Are Not Confident In Financial Skills – Wallethub Generational Finances Survey

Gen Z is the least financially confident generation, with more than 1 in 4 Gen Zers saying they are not confident in their financial knowledge and skills, according to WalletHub’s Generational Finances Survey. WalletHub’s survey asked about everything from how people feel about homeownership and where they get their financial advice to how financially secure they are and what’s holding them back.

57% of Gen Zers think savings accounts are the best way to invest their money, while 46% of Baby Boomers say investing in stocks is a better option. 48% of Baby Boomers say inflation is holding them back more than their income, debt, and housing costs, compared to only 39% of Gen Zers. Almost 30% of Gen Zers don’t have a budget for managing their monthly expenses.

Over 34% of Gen Zers say their parents did not set a good example for them financially - more than any other generation. While most Baby Boomers (60%) prefer a financial professional as their go-to source for financial advice, Gen Zers (39%) prefer a family member.

“Every generation except Gen Z agrees that the stock market is the best place to invest their money. Members of Gen Z prefer savings accounts, WalletHub’s new survey found. Gen Z’s opinion is understandable given how attractive high-yield savings accounts and CDs have been recently, but investing in stocks or mutual funds still is key for long-term growth,” said Cassandra Happe, WalletHub analyst when asked how generations differ when it comes to investing their money.

“All generations view real estate as the third-best investing option,” she continued. “Followed by bonds and then cryptocurrency. Baby Boomers and Gen Z both have very little interest in cryptocurrency, while Gen X and Millennials see it as almost as good of an investing vehicle as bonds.”

For the full study, please visit https://wallethub.com/blog/generational-finances-survey/133122/