7 Financial Mistakes Every Gen Zer Should Avoid
If you’re in the Gen Z age range, you probably either know a lot about money or very little about it. Whatever the case, money is something most of us can’t seem to get enough of. For people within the Gen Z age range (1996 - early 2010s), conversations are revolving more around getting jobs, moving out, and finding ways to make extra income.
While we’re figuring out how to make more money, it’s essential we know how best to manage the financial resources we already have. In this article, we’d check out 7 financial mistakes Gen Zers can avoid so they have more money.
1. Believing Influencers Are Always Right
When it comes to your spending choices, you want to be sure you’re making an informed decision that’s to your benefit. Ensure that you’re not solely being influenced by the glamorous life of an influencer. As some millennials would be willing to admit, the influencers aren’t always right.
2. Outrageous Auto Loans
While cars are important, try going with public transportation if you can. Struggling to make payments on a car without a job can quickly escalate into a nightmare. It’s even worse when these cars are way more expensive than your income. Before making the down payment on that Porsche, you might want to think again about what car options could really work for you.
3. Ignoring Financial Literacy
If we’re being honest, the average blog post on personal finance isn’t the most interesting thing in the world to read. But ignoring financial literacy or putting it off till you’re older is rarely a smart move. The earlier you begin to learn about managing your finances, the better for you.
4. Having the Perfect House
Millennials usually advise Gen Zers to delay moving out from their parent’s house if they can. Rent payments, utility repair, and other housing fees can often stretch your finances thin. However, if you do move out, be sure to rent a place you can afford.
It’s alright to want to have the perfect house with fantastic decor and jaw-dropping furniture but building your nest slowly and steadily will do your finances a lot of good. If you ask most millennials, one thing they regret is overspending on furniture and decor. Rather than splurging on these things, try building it up slowly.
5. Over-Rewarding Yourself
We get it. Everyone loves a good treat. But one way to quickly accumulate debts and get bad credit is to often splurge on items that you can’t afford. Moderation is the key here. Find creative ways to reward yourself that don’t always involve pulling out a credit card or spending money.
6. Overusing Your Credit Cards
Oxygen, water, and credit cards are some of the most regularly used things in the world. Or so we believe. However, just because we have credit cards doesn’t mean we get to buy whatever we want without properly weighing the decisions. Purchases made with credit cards still have to be paid off eventually and buying things we can’t afford on credit is a quick way to pile up debts. Debts can be sneaky. So you’ll need to track your spending by using your credit cards sparingly. It’s perfectly normal to tell friends that you’re on a budget rather than spending to impress.
7. Sweeping the Money Talk under the Rug
Being in love is a beautiful thing, but it will require doing many uncomfortable things like talking about money with your significant other. Before getting committed to someone, it’s advisable to find out what influences their spending choices, how they manage their personal finances and their plans for the future. Dodging the money talk and assuming everything would work out well can turn out to be a disaster down the line. Having real and transparent talks about spending and about your income is the best thing you’d do.
Making more money isn’t always as easy as managing what you already have. In this era of online shopping, social media influencers, and increased peer pressure to live a certain way, any Gen Zer would do well to avoid financial pitfalls and protect their money. While you won’t become a financial management expert overnight, avoiding these mistakes will make you feel more comfortable in the future.