GEN Z ARE SMARTER IN AFFORDING HOUSES THAN MILLENNIALS
We can learn how Gen Z are saving more money.
Millennials, as they said, are the most ambitious generation. The study showed that Gen Z are more aggressive than millennials, as proven by their eagerness to afford their own home before 30. Gen Z are also reported to have started saving money to buy a house, according to Business Insider. The study defines Gen Z as people aged 18-23 years old, and millennials are those aged 20-40 years old. Around 59 percent of Gen Z said they want to own a home in the next five years.
So, why the younger Gen Z are more obsessed with the housing market than millennials?
According to Business Insider, 59 percents of Gen Z say planning to start a family is the prime reason why they want to buy a house, while 47 percents say they want to build wealth by purchasing a house. 33 percents left to confess it's a part of making their parents proud by affording their own house.
We should clap our hands for Gen Z, where they are leading in saving money habits. Born between 1995-2012, they start to enter working life and enjoy their first paycheck. However, they are good and wise in spending money than millennials.
Hey millennials, maybe this is the time to put our hat on the table and learn how the younger generation can afford the house.
Save early and often, even in teenagers stage
Gen-Z watched their parents standing to face a bad recession in mid 98’. This makes them take a different approach to save money than older generations by planning to start sooner. We might think it’s impossible. They also suffered from a lack of money due to the economic slump as they were still babies at that time. But, we believe that their parents give many life lessons because they don’t want their children to experience life as they had.
The National Society of High School Scholars found that 35% of Gen-Z members plan to start saving for retirement in their 20s, while very surprisingly, another 10% are planning to save as teenagers. Saving early and methodically making sure they have money well into their golden years is setting Gen-Z up for high career expectations. In the survey, 71% expect a solid work/life balance for a well-respected company with proven value.
Intend to study while working and choose the cheaper school
Learning to live independently as early as they can is the key. Gen-Z is not only planning to study while working. They also intend to afford more than half their spending life cost unassisted. They want to contribute to their college tuition by personal savings. Along with it, Gen-Z will think of more efficient ways to get a college education. They plan to study at an in-state school to save more money. Vice versa, millennials are more interested in attending the best school even if they're too expensive. It answers why Gen-Z has more money because they know getting money is not easy.
As mention before that Gen-Z already watched their previous generation experiencing all ups and downs related to spending money and recession. Gen-Z want to prove that they can be responsible for handling their financial matters. And, yes, they nailed that!