Why Gen Z are Saving Money?
Changes in spending as well as job searching habits help young people cope well with a volatile economy.
2023 is predicted to be a rather difficult year in the economy. This has prompted Gen Z (generation born from 1997-2012) to take measures to protect personal finances. About 78% of Gen Z adults (ages 18 to 24) say that they're cutting spending in preparation for a potentially worse U.S. economy, according to the LinkedIn's latest Workforce Confidence Index report surveyed 11,032 professionals in the US between September 1 and October 21, 2022.
That's slightly higher than the 74% of millennials (those aged 25 to 41) who are on similar and significantly higher saving policies than previous generations.
Young people are also expected to delay major purchases such as houses or cars and sell things they don't really need to have a more steady cash flow.
Besides, the younger generation will be more considerate when negotiating about salary. Gen Z is said to plan to work harder. Nearly a quarter of respondents are also considering taking a second job or a more stable job before the possibility of being laid off due to the economic downturn.
Financially, Gen Z doesn't have the time to build a healthy emergency fund for their unemployment period.
According to Adobe, when getting a job offer, Gen Z tends to be uninterested in a position without a competitive salary, work-life balance or comprehensive benefits. While former graduates may also have appreciated these attributes, young people today value them more.
Knowing the salary can help Gen Z decide faster based on whether it really fits the personal cost of living or not.
Why Gen Z are Saving Money?
