Younger Americans may be making more changes to deal with rougher economic realities, like high costs of living. They may be delaying milestones and making lifestyle changes to deal with financial struggles.
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Here’s a look at three valuable money moves Gen Zers have made in 2024 and how they’re approaching some financial milestones.
Lifestyle Changes
Gen Zers, like many other Americans, have been dealing with rising costs and growing financial challenges. According to a Bank of America study, two-thirds (67%) are making lifestyle changes to help fight back against rising expenses.
- 43% are cutting back on dining out.
- 27% are passing on events with friends.
- 24% are shopping at more affordable grocery stores.
Further, an analysis from Bank of America found that Gen Zers and millennials are “trading down” to combat rising costs. The moves come despite a strong labor market the past few years.
“Though faced with obstacles driven by the cost of living, younger Americans are showing discipline and foresight in their saving and spending patterns,” said Holly O’Neill, president of retail banking at Bank of America, in a statement. “It is critical that we continue to empower Gen Z to work toward achieving financial health and meeting their long-term goals.”
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Delayed Milestones
Speaking of goals, more than half (52%) of those surveyed said they don’t make enough money to live the life they want, with the cost of living as a “top barrier to financial success.”
Many said they are delaying milestones and are not on track to buy a home (50%), save for retirement (46%) or start investing (40%) within the next five years — even though they’re working toward those goals.
One approach to keep pace with financial milestones may be setting more firm financial boundaries. It looks like Gen Zers are getting that message.
The research found that “loud budgeting” has helped younger Americans live within their means. “Loud budgeting” means communicating with friends about what they can afford and what they’re passing on because it’s not in their budget. Many Gen Zers — 38% — are comfortable with loud budgeting and most — 63% — said their friends do not pressure them to spend more than they’re comfortable.
Helpful Steps
For those of any age looking to get back on track toward financial milestones, there are simple steps to get started. Per Edward Jones, one first step is to build a solid financial foundation: If you’ve hit roadblocks, you can start by building some emergency savings and working to pay off debt.
After you have that solid foundation, you can work toward a goal of gaining stability with your financial health. This can include putting more money in emergency savings and checking your debt-to-income ratio.
The third step is to optimize your finances. You can take this opportunity to think about your attitude toward debt and how you feel about carrying the amount you do, as well as fully funding your emergency savings and making sure you’re on track with your retirement savings.
At any step in the journey, it may be helpful to review your current situation and goals with a financial advisor. They may be able to provide resources about money moves to make to set you on track to achieve certain financial milestones.
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This article originally appeared on GOBankingRates.com: Gen Z Made 3 Valuable Money Moves in 2024 — How To Keep Pace With Financial Milestones
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