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Why Gen Z and Millennials are optimistic about their financial futures
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Most people in the US are struggling to make ends meet and are forced to live paycheck to paycheck. We have to persistently navigate inflationclinging to our jobs amid mass layoffs, and figuring out how to feel stable under a cloud of general economic uncertainty. It’s easy to feel less hopeful about what the future holds.
But not everyone has fallen into a pessimistic mindset – some are actually feeling pretty good.
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According to a Stash searcha financial services and fintech company, younger generations of working Americans feel optimistic about their financial futures — “working” defined as a combination of work hours, salary, and self-identification. The survey found that 71% of these millennials believe their children will be better off than they are; 67% of millennials and 68% of Gen Z respondents think the future is brighter than the past. Comparatively, only 46% of baby boomers and 51% of Gen Xers feel the same way.
What are Gen Z and millennials so optimistic about what the financial future holds? Douglas FeldmanCIO and head of investment strategy at Stash, provided answers to GOBankingRates.
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The US job market is booming and wages are rising
Although there were mass layoffs last year — with the technology sector taking the biggest hit — the U.S. job market continues to grow. And wages are rising along with it, “translating into a great job market for younger working Americans as they enter the highest-earning years of their careers,” Feldman said. “According to our research, 81% of millennials believe they can easily find a new job if they need to.”
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People are having children later in life
Back when boomers were young, it wasn’t uncommon to have a few kids when you were in your mid-twenties. Of course, that’s still often the case, but increasingly, younger generations are putting the idea of starting a family on the back burner.
“More young working Americans are delaying having children until later in life, which gives them time and opportunity to build a safety net in the form of emergency savingsretirement accounts and even custodial accounts before children are born or when children are very young,” Feldman said.
They are using digital tools and services to help them with their finances
Younger generations are used to using the internet to do almost everything. And this can help them financially.
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“The explosion of digital tools and services to help millennials and Gen Z has also contributed to an increase in optimism and confidence around financial goals,” Feldman said. “Nearly three-quarters of working Americans want support and guidance, and with more and more investment platforms and financial wellness benefits available to them, they can take advantage of these tools more easily.”
They talk to others about their money
Money is not nearly as taboo a topic as it was during the boomer heyday, and that’s a good thing. By feeling more open about talking about finances, younger generations are better able to understand what they need to do to achieve their goals.
“Millennials and Gen Z are twice as likely to talk to friends and family if they find themselves in a challenging financial situation,” Feldman said. “A recent Commonwealth report reveals that 67% of people who talk to others about investing at least once a month feel a sense of belonging and investment identity. Additionally, 45% of millennials are confident they will achieve all of their financial goals, according to our research.”
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This article originally appeared in GOBankingRates. with: Why Gen Z and Millennials are optimistic about their financial futures