Pop Quiz, Hot Shot! Do You Know Your Gen Z & Millennial Customers’ Top 5 Financial Concerns?
Supporting this notion, the majority of workers
(66%) reported that any salary gains they’ve received in the last year have been outpaced by inflation. Additionally, entry to mid-level workers – mostly comprised of Gen Z and Millennials – may feel a stronger impact than workers who have progressed further in their careers and have higher salaries.
- Young Adults Are Less Likely to Buy Homes, Even Though They Want to
Most adults across both generations want to buy homes, but affordability is challenging. Gen Z adults and Millennials identified the most common barriers to
homeownership as insufficient income, inability to save for a down payment or closing costs, and rising home prices.
Over the last couple of years
, home prices have risen sharply, pushing many would-be homeowners out of the market. Starter homes that Millennials and Gen Z may have been able to afford in the past quickly became unaffordable. Consequently, young adults are delaying purchases and instead extending lease agreements on apartments and rental homes.
- Young Adults Are Delaying Savings Because of Student Loan Debt
Across all generations, Americans hold more than $1.7 trillion in student loan debt. Of those who took out student loans, 74% of Gen Z and 68% of Millennials
delayed a major financial decision because of their debt.
Overall, 27% have delayed saving for emergencies, and 26% have delayed saving for retirement – two critical savings categories for young adults. A recession would make saving even harder.
- Young Adults Are Concerned About Cost-of-Living Increases From Rising Inflation
Inflation is at a 41-year high, with half of Gen Z and Millennials
now living paycheck to paycheck. Additionally, a recent Deloitte survey
found that cost-of-living, including housing, transportation, and bills, is the top concern for 29% of Gen Z and 36% of Millennials.
Not surprisingly, many young adults have gone home to live with their parents and lower their expenses. With increased living costs and stagnant wages, Gen Z and Millennials will be increasingly attentive to their budgets.
- Young Adults Are Concerned with Finding Long-Term, Stable Jobs
Gen Z and Millennials are particularly focused on working with employers that offer a great company culture, but that doesn’t mean they’re not focused on long-term job stability, too.
Contrary to popular belief, most young adults are not fleeing from jobs the moment they face struggle. In fact, a survey from iCIMS
found that 91% of undergraduates and recent graduates care about how long they stay with an employer, and almost 70% see themselves staying with an employer long-term.
Entrepreneurship is also up among young adults. A record number of Millennials are turning to self-employment, with nearly one in three having....-->
Right now, the economy is facing decades-high inflation and ongoing supply chain issues brought on by the pandemic, rising gas prices, and interest rate hikes. Jamie Dimon even referred to the economy as an incoming hurricane, warning investors to “brace yourself.”
But for the everyday American, especially young adults, managing their personal finances may feel more like being on Bus 2525, with Keanu and Sandra side-swiping cars, hitting construction barrels, and flying across bridges, all to avoid a total disaster. It’s confusing and sc...
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