One recent study from Prudential Financial identified that Gen Z and millennials are not saving money for future events and are instead using that money to spend on entertainment. The survey involved nearly 5000 Americans with 2000 of them being Gen Z or millennials.
The study determined that 44% of adults name debt as preventing them from accomplishing their personal goals, but that number jumps to 55% for millennials. Furthermore, 44% of Gen Z and millennials do not believe they will be able to achieve the same financial goals as their parents. The biggest issue impeding success financially from the respondents’ answers was student loan debt, but there are other expenses that showed up as well. In fact, 32% of Gen Z and 27% of millennials admitted they’ve spent more money on splurge items in the past year, while only 12% of baby boomers and 18% of Gen X said the same.
Many Gen Z and millennials are not keeping a budget. In fact, nearly 70% of them say that they do not keep a budget right now and do not want to. A further 40% said they would rather go to the dentist and spend time coming up with a budget. While it can be hard to start looking at your bigger financial plan if you don’t yet have an emergency fund set aside, knowing that you have a plan is beneficial as a building block. Start with a strong foundation by contacting a team of financial professionals who can guide you through what a full plan looks like. You can start with one piece and add to it as you go. Over time, you can continue to add to your plan.
Setting aside time to meet with a financial professional doesn’t just protect your interests, it helps you to prepare for the future.