As times change, young people face an increasingly different economy than the generations before them. The newest generation to begin entering adulthood is called Generation Z, and financial experts have identified some beliefs, challenges and strengths this generation seems to demonstrate when it comes to financial literacy and debt management. According to research on this demographic, here are a few common money mistakes and misconceptions young Connecticut residents may have.
Generation Z is likely to research financial decisions, which can be a good thing so long as they are getting answers from legitimate sources. Incorrect information or bad advice on issues like investing, budgeting and debt management are common online. Luckily, 84 percent of Generation Z members report relying on parents and family members for financial advice, so they can hopefully confirm the veracity of online research by speaking with those in their network.
Generation Z is more open to financial technology and DIY investing methods. Direct-to-consumer options for investing and buying financial products often cut out traditional markup and follow convenient digital processes. This is not always a bad financial move, but it is a good idea to do research on technology before adopting it in order to balance risk with reward.
The good news for Connecticut parents and young people is that research shows this generation is generally financially literate and understands debt management. Despite this mostly positive outlook, there are situations such as medical emergencies and economic downturns that can lead to unmanageable debt. In these cases, getting an understanding of Connecticut bankruptcy law from an experience lawyer is a good idea.
Source: U.S. News & World Report, "6 Things Generation Z Gets Wrong About Money", Maryalene LaPonsie, May 3, 2018