1. They avoid interest charges
Gen Z is more likely to pay off their loans quickly or utilize promotional offers for personal loan balance transfers that allow them to pay off their purchases over time without accruing interest. Since Gen Z is coming into an unstable job market, they’re aware of how extra costs, like interest, can affect their budget, making them less likely to take on unnecessary debt.
2. They’re savvy with cash
Gen Z is more likely to carry around extra cash and use it for emergencies or unexpected costs such as car repairs or tuition bills. This approach to managing finances can help them avoid getting into a cycle of debt where they are constantly struggling to pay off large amounts of interest.
3. They prioritize their expenses
Gen Z is also more likely to prioritize their expenses and find ways to save money on necessities like food, transportation, and utilities. This strategy can help them build a financial buffer that can be used during difficult times or emergencies.
4. They are careful with their spending
Gen Z is also more likely than other generations to research different types of loans and credit products before taking out a loan. This approach can help them avoid taking on high-interest debt products that could spiral out of control.
What financial lessons can we learn from Gen Z?
If you’re struggling to pay off high amounts of interest on your debt, it might be helpful to consider some of the strategies that Gen Z is using to stay afloat. For example, they may prioritize their expenses and find ways to save money on everyday items. Additionally, they may be more careful with their spending and use their financial skills wisely.