Younger generations always face financial stresses of various kinds. There are still some who faced the Great Depression as young people, for example, and others who dealt with inflation in the 1970s, energy crises and various recessions. So the current young generation is not unique in facing financial challenges and their effect on the interest in, and ability to, save money — including for retirement. Recent analyses offer a look at the readiness of the youngest and how well their elders are helping prepare them.
Generation Z — generally defined that as those born after 1995, and thus under age 21 — is not a significant factor in the workforce yet — but that will change. According to Maritz Motivation Solutions’ study “Motivating the Workforce of 2020,” Generation Z in 2015 comprised a mere 1% of the U.S. workforce, and will make up 7% by 2020. However, Apple Rubber estimates in its Industry Trends report that 30 million members of Gen Z will already be in the workforce by 2019, regardless of how young they are.
Reasons for Hope
In “Cracking The Code On Gen Z: Do As I Say, Not As I Do,” a column appearing in Forbes, Neale Godfrey cites a study by the Lincoln Financial Group, M.O.O.D. of America, that included measures of the readiness — and prospective readiness, for those who are minors — of Generation Z. That study notes that they face challenges such as high college tuition, a tough job market and having to finance a longer life than previous generations. And the oldest of them, who are college age, are already experiencing some of these stresses.
Godfrey observes that while the youngest among us face many challenges, there is reason for some hope. Lincoln Financial Group found that Generation Z members are optimistic, and that they already are beginning to think about financial planning and the challenges they will face. In fact, it says that more than half of that group already has a savings account, with the average age for opening one age 13.
Godfrey assumes that Gen Z will be conversant in use of technological applications and mobile devices — not an unreasonable expectation. And she argues that this will serve them in good stead, aiding not only in making investments but also in gaining education about finances and financial management.
Recession Even Affected Gen Z
Apple Rubber has observed that members of Generation Z came of age during a daunting time economically, and that as a result they are more realistic than generations older than them and they appreciate stability. Inc.com has made a similar observation, and notes that they saw their parents struggle financially. So does Godfrey.
The very generation, the Lincoln Financial Group study says, to which Generation Z turns most predominantly for advice. A study by staffing company Addeco earlier in 2016 came to a similar conclusion, finding that more members of Generation Z are influenced by their parents — and follow that influence — than are the Millennials, at 42% and 36%, respectively.
The importance Gen Z accords to their parents’ influence, says Lincoln Financial Group, means that education about financial management and retirement is a priority for their elders as well.
Who Cares? You Should.
Why does this matter? Quite simply, if the newest generation is attuned to the importance of saving for the future, they may be open to education about retirement saving, and appreciate it. And since they do not comprise a large segment of the workforce but will soon, employers and plans have a little advance warning and can prepare for their arrival in greater numbers.
Generation Z — generally defined that as those born after 1995, and thus under age 21 — is not a significant factor in the workforce yet — but that will change. According to Maritz Motivation Solutions’ study “Motivating the Workforce of 2020,” Generation Z in 2015 comprised a mere 1% of the U.S. workforce, and will make up 7% by 2020. However, Apple Rubber estimates in its Industry Trends report that 30 million members of Gen Z will already be in the workforce by 2019, regardless of how young they are.
Reasons for Hope
In “Cracking The Code On Gen Z: Do As I Say, Not As I Do,” a column appearing in Forbes, Neale Godfrey cites a study by the Lincoln Financial Group, M.O.O.D. of America, that included measures of the readiness — and prospective readiness, for those who are minors — of Generation Z. That study notes that they face challenges such as high college tuition, a tough job market and having to finance a longer life than previous generations. And the oldest of them, who are college age, are already experiencing some of these stresses.
Godfrey observes that while the youngest among us face many challenges, there is reason for some hope. Lincoln Financial Group found that Generation Z members are optimistic, and that they already are beginning to think about financial planning and the challenges they will face. In fact, it says that more than half of that group already has a savings account, with the average age for opening one age 13.
Godfrey assumes that Gen Z will be conversant in use of technological applications and mobile devices — not an unreasonable expectation. And she argues that this will serve them in good stead, aiding not only in making investments but also in gaining education about finances and financial management.
Recession Even Affected Gen Z
Apple Rubber has observed that members of Generation Z came of age during a daunting time economically, and that as a result they are more realistic than generations older than them and they appreciate stability. Inc.com has made a similar observation, and notes that they saw their parents struggle financially. So does Godfrey.
The very generation, the Lincoln Financial Group study says, to which Generation Z turns most predominantly for advice. A study by staffing company Addeco earlier in 2016 came to a similar conclusion, finding that more members of Generation Z are influenced by their parents — and follow that influence — than are the Millennials, at 42% and 36%, respectively.
The importance Gen Z accords to their parents’ influence, says Lincoln Financial Group, means that education about financial management and retirement is a priority for their elders as well.
Who Cares? You Should.
Why does this matter? Quite simply, if the newest generation is attuned to the importance of saving for the future, they may be open to education about retirement saving, and appreciate it. And since they do not comprise a large segment of the workforce but will soon, employers and plans have a little advance warning and can prepare for their arrival in greater numbers.
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