"they are also an incredibly resilient generation"
Research suggests that Gen-Z adults are more prepared for the future than Millennials when it comes to their money goals.
According to a survey, 59% of Gen-Z savers born after 1996 said they have committed to financial goals over the next five years.
In contrast, First Direct said four in 10 Millennials – those born between 1981 and 1996 – have a similar plan.
Commissioned by First Direct as part of its 35th anniversary celebrations, the OnePoll survey asked 4,000 individuals.
The research found that despite economic challenges like delayed milestones in homeownership or desired salary levels, around three-quarters of Millennial (76%) and Gen-Z (73%) age groups said they are determined to reach their goals.
Notably, 50% of Millennials said the cost of living crisis had forced them to delay financial milestones, with economic uncertainty (28%) and a lack of wage growth (27%) also meaning money goals had been delayed.
The most common goals for Millennials surveyed were:
- Achieving a better work-life balance (34%)
- Saving for retirement (29%)
- Travelling to new places (29%)
- Achieving financial independence (29%)
- Earning substantially more money (29%)
- Advancing their career path (29%)
Carl Watchorn, head of banking services at First Direct, said:
“What our data shows is that younger people have very high aspirations when it comes to achieving their financial goals.”
“Having navigated a range of challenges, including higher costs of living and the aftermath of the pandemic, they are also an incredibly resilient generation that’s committed to building a good standard of living.”
Here are some tips to boost financial resilience
- Consider speaking to your bank to find out what tools and support are available.
- Set some goals. If your aim is to go on more trips, for example, then you can set some savings targets based on the average cost of visiting your destination of choice, and then adjust your spending to meet this goal within a decided timeframe.
- Make the most of apps and tools to set a weekly budget and consider your daily spending. Try to work out your current average weekly spend, so you can compare it with your target for spending.
- Focus on building a financial buffer. You could try setting aside an affordable amount monthly. Some financial products are designed to give a good return for putting money away regularly.
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