Generation Z Banking Needs [infographic]
Generation Z Banking Needs
If you are born between 1994 and 2010, you are part of Generation Z.
Your generation has different attitudes and different banking needs than millennials and generations before you, and it’s important you make some smart banking decisions now to start off right.
Your generation matters: 32% of our total population is Gen Z, 85% rely on parents or family for financial information, 40% of all consumers by 2020
Choose a bank or a credit union
Bank: financial institution licensed to receive deposits and make loans to their customers. For profit institutions that may be small, large, regional or nationwide. No restrictions on who can bank with an institution. Convenience to branches. Flexible withdrawals. Rewards/discounts. Low/no fees. Customer service.
Credit union: financial institution that is created and owned by their members. Non-profit institutions that may be small, large, regional or nationwide. Membership restricted based on charter, which can e based on location, employer, or other criteria. Flexible withdrawals. Rewards/discounts. Low/no fees. Customer service.
Technology priorities: rank these technology proprieties to determine what is most important to you: online banking, mobile banking app, person to person payment, budgeting tools.
Begin saving early
Savings account: most popular, very low interest rates
CD/share certificate: high interest, can’t withdraw money during the term
Money market account: higher minimum deposit, high interest
Start retirement savings: savings for your retirement is so important to begin while you are young so that you have plenty to live off of later on. 1 in 3 Americans have nothing saved for retirement. 47% of all workers were forced into early retirement. 22 is the ideal age someone should start saving. 35% of generation z plan to start saving for retirement in their 20s. Popular retirement choices include: 401K, offered through many employers often with an employer match. IRA, individual retirement account, money grows tax free.
Keep debt to a minimum. You may already have some debt. Before it catches up with you, here are some tips.
Student loan debt tips:
- 1. Create a budget and stick with it
- 2. Analyze your loans refinance if you can
- 3. Don’t miss a payment its not a good habit
- 4. Deduct interest on your student loans
- 5.Research eligibility for student loan forgiveness
- 6.Tackle smaller debts and work your way up
Credit Card Debt Tips:
- 1.Create a budget and stick with it
- 2.Track your expenses to see what you spend
- 3.Choose a payoff strategy that you can stick to
- 4.Transfer to a lower rate card if you can
- 5.Keep track of your progress and check on finances
- 6.Stop using your cards you can do it
Auto loan debt tips:
- 1.Don’t miss a payment its not a good habit
- 2.Pay half of monthly payment every 2 weeks
- 3.Pay one large extra payment every year
- 4.Refinance your loan to a lower rate
Get health insurance. A boring topic, we know, but something very important to have in place when the unexpected happens. Because, it will. You can get insurance through your employer or the affordable care act. 28 million people don’t have health insurance (8.8% of U.S. population)