Wismo Review – An App to Organize & Share What You Spend Money On

Wismo Budget is a lightweight mobile budgeting app that takes two forms: a free version and a paid version that more than justifies its modest price. We’ll dive into the differences between the two in the Key Features section.

Getting Started With Wismo Budget

To get started with Wismo Budget, you’ll need to provide your name, email address, and phone number. You’ll then create a username that doesn’t contain personally identifiable information, such as your first and last name or your home address.

Next, you’ll answer some basic questions about your personal finances, covering your monthly income, housing costs, and transportation costs.

Once you’ve done that, you’ll land on your app’s dashboard, which lays out:

  • Your initial Personal Spending Index (more on that below)
  • Your recurring spending based on your answers to the initial questions
  • Your daily budget based on the information you’ve provided so far
  • Your daily spend, which starts at $0 and increases as you enter transactions

Adding Income & Expenses

Now, you’re ready to begin tracking your spending for real.

Daily Spend

On the main dashboard, use the “+” button to add a new one-time transaction. Snap a picture of the transaction receipt, if one exists, then enter the amount and spending category. Or, simply enter the amount of the transaction and its category.

Use “custom” for debit and credit card transactions that don’t neatly fit into preset categories such as “getting around” and “services.” For more detail, you can add the payee’s name and notes about the expense.

When you’ve entered all of your expenses, click “Close the Books” to get your final spend tally for the day and see how it compares with your daily budget. Your daily budget is your monthly income minus recurring expenses, divided by the number of days in the month.

An important word of warning: Wismo shares what you spend money on (your debit and credit card transaction amounts and categories) with other users. In other words, your fellow Wismo users will see that you spent $50 on “fun.” However, this information is anonymized and doesn’t include payee details. Other users will only see your username, not your real name.

Recurring Transactions

You can also enter recurring expenses in about a dozen categories, including housing and transportation, utilities, insurance, subscriptions, health, loans/debt, and savings goals.

Add subcategories for more granular tracking. For instance, your “transportation” category might include fuel, your parking pass, rideshare fares, and public transportation expenses. You can organize expenses however you see fit. If it makes more sense to you to add your car loan under “transportation” rather than “loans/debt,” go for it.

Monthly Income

You can add new income buckets under the monthly income tab. This space gets pretty granular, with categories such as “other jobs,” “support,” “investments,” and “retirement.” Add subcategories to put an even finer point on things – for instance, to track your various streams of freelance income.

Finding Friends & Peers

Use the “Friends” tab to find other Wismo Budget users. You can filter by age, annual income, sex, and occupation to zero in on folks who more or less resemble you. Once you’ve found some users to follow, you can compare your spending habits to theirs as revealed in their public feeds (more on that below).


Key Features

Here’s a closer look at the key features of the Wismo Budget app.

Personal Spending Index (PSI)

Wismo is built around the Personal Spending Index (PSI), a numeric distillation of your cash flow based on your self-reported or verified income and expenses.

The formula is simple:

(Spend ÷ Income) x 100 = PSI

A PSI of 100 indicates that you’re spending exactly as much as you earn. A PSI under 100 indicates surplus income that you can – and probably should – put toward savings, while a PSI over 100 indicates negative cash flow.

For obvious reasons, Wismo recommends keeping your PSI under 100. As long as you’re diligently and comprehensively tracking your income and spending, the app makes that a whole lot easier.

Reports

Wismo Budget isn’t as big on reports as more robust budgeting apps, but it does have some user-friendly visualizations for users who like that sort of thing. Use the Reports tab to visualize:

  • Your total expenses for the month
  • Your daily spending for the month
  • Your recurring expenses for the month
  • Your PSI by month

Public Feed

Your public feed displays other Wismo users’ spending activities in near-real time. The “Everyone” bar is a comprehensive roundup of all non-private users’ spending; the “Friends” bar covers just those you’ve followed. Users are identified by their usernames and avatars.

Remember, if you’re using Wismo’s free version, your spending is visible in other users’ feeds. There’s no way to turn off this feature without upgrading to Premium. Wismo is transparent about its information-sharing practices, advising users to omit obvious clues to their identities from their Wismo usernames. But if you’d still prefer to keep your personal spending under wraps, you may want to consider the Premium version.

Premium Features

When you upgrade to Wismo’s Premium plan, you’ll enjoy these enhanced features.

  • Linked Accounts. Premium users can link financial accounts to Wismo, eliminating the need to enter non-cash transactions manually. Wismo uses bank-grade, 256-bit encryption for security and peace of mind.
  • Privacy Mode. Premium users can set their accounts to Privacy Mode, bypassing Wismo’s social feed feature and rendering their accounts invisible to other users. If you’re leery of sharing financial information, even anonymously, it’s a strong argument for upgrading.
  • Family Plan. Premium users can add up to four family members to track and share expenses together. That’s great for couples who’ve merged their finances and families with income-earning teens and young adults.
  • Ad-Free Experience. Wismo’s Premium version has no ads, reducing the interface’s clutter. As personal finance apps go, Wismo doesn’t feel particularly commercial, but it’s nice to have the option to go completely ad-free.

Wismo’s Premium plan costs less per year than most full-service budgeting apps. That said, it includes features such as Privacy Mode that come standard in some free budgeting apps, such as Mint and its top alternatives.


Advantages of Wismo Budget

Wismo Budget has some notable advantages:

  1. The Free Version Is Totally Free. Wismo Budget’s free version is truly free, with no hidden fees or upsells buried in the interface. As long as you’re willing to tolerate advertising and consent to anonymized data sharing, you’ll never pay a dime out of pocket to use Wismo.
  2. PSI Makes Cash Flow Easy to Understand. Wismo Budget’s Personal Spending Index is a shockingly simple cash flow conceptualization that’s easy for even the most math-challenged to understand. A PSI under 100 means you’re spending less than you earn; a PSI over 100 means it’s time for some strategic spending cuts to get back on track. It’s as close to black-and-white as you can get in the world of money management.
  3. No Need to Disclose Sensitive Personal Information. Wismo doesn’t require users to disclose sensitive personal information, such as Social Security numbers or home addresses, as a condition of use. Indeed, any information you provide to Wismo is anonymized, and linked financial account numbers are protected via bank-grade, 256-bit encryption. Avoid including obvious clues to your identity, such as your first and last name, in your Wismo handle, and no one will ever be the wiser.
  4. No Obligation to Link Bank Accounts or Transfer Funds. Wismo’s Premium users can link bank accounts to the app for a more seamless, hands-off money management experience, but they’re under no obligation to do so. That’s a big advantage over budgeting apps that require – or aggressively nudge – users to take this step. Even with Wismo’s top-shelf encryption, it’s reasonable for users not to want to give yet another third-party app access to their financial accounts. Wismo clearly respects that.

Disadvantages of Wismo Budget

Consider these potential drawbacks carefully before using Wismo – and certainly before upgrading to Premium.

  1. The Free Version Contains Advertising. Wismo’s free version contains ads. In practice, these ads don’t adversely affect the user experience, but they’re still present and unavoidable unless you switch to the paid plan. If you’re not too interested in the paid plan’s other perks, you may not want to upgrade solely to eliminate ads.
  2. Not As Robust As Some Other Budgeting and Spending Apps. Wismo is a pretty lightweight app. That’s great for consumers interested mainly in tracking and controlling spending, but not so great for serious budgeters seeking deep insights into their spending patterns and personal finances.
  3. No Desktop Version. Wismo is a mobile-only app. It’s not compatible with large-screen devices, such as laptops and desktops. If you don’t own a smartphone or prefer to manage your personal finances on a device with an actual keyboard, Wismo isn’t for you.
  4. Other Wismo Users Can See Your Financial Details in the Free Version. To use Wismo’s free version, you must permit the app to share all the financial information you enter with fellow Wismo users. Wismo only shares information anonymously and uses bank-grade encryption to keep account numbers from falling into the wrong hands. Still, Wismo’s open-source approach is sure to give some prospective users pause. Don’t feel bad if you’re among them.

Final Word

Not everyone enjoys budgeting. Managing a traditional household budget is a labor-intensive task involving lengthy spreadsheets with categories galore and cells for every transaction. Modern budgeting apps streamline the process a bit, but they still require time and effort to maintain with any accuracy.

Fortunately, having a formal household budget isn’t a prerequisite of fiscal responsibility. I know a few financially savvy folks who’ve sworn off budgeting yet still manage to spend less than they earn and save for the future.

Wismo Budget is different enough from other budgeting apps to attract folks who can’t be bothered with traditional budgets. Wismo is lightweight, intuitive, and fun to use – perfect for those with no patience for graphs, spreadsheets, and the other trappings of hardcore budgeting apps.

Whether you’ve attempted budgeting or know you don’t enjoy it, give Wismo a try. You might be surprised by the experience.

Source: moneycrashers.com

What Is Share Lending?

Share lending is the business of investment firms loaning out shares to borrowers as a way to collect additional revenue on stocks that otherwise would have sat untraded in their portfolios. Meanwhile, the borrowers of the shares are often short sellers, who give collateral in the form of cash or other securities to the lenders.

Lenders tend to be pension funds, mutual funds, sovereign wealth funds and exchange-traded fund (ETF) providers, since these types of firms tend to be long-term holders of equities. Brokerages can also practice securities lending with shares in retail investors’ brokerage accounts. Share lending helps such firms keep management fees down for their investors.

Also known as securities lending, the practice can extend beyond equities to bonds and commodities. Securities lending has become more popular in recent years as price wars drove down management fees to near zero and investment firms sought other sources of revenue. Revenue worldwide from securities lending totaled $7.66 billion in 2020 , with an additional $2.87 billion in broker-to-broker activity, according to financial data firm DataLend.

Share lending is useful to investors who are shorting a stock, because they have to borrow shares in order to put on their bearish positions. Critics argue that the practice comes at the expense of fund investors, since investment firms forgo their voting rights when they loan out shares. They might also try to own stocks that are easier to rent out. Other concerns include a lack of transparency and an increase in counterparty risk.

How Securities Lending Works

Here’s a closer look at how share lending works:

1. Institutional investors use in-house or third-party agents to match their shares with borrowers. Such agents receive a cut of the fee generated by the loan.
2. The fee is agreed upon in advance and typically tied to how much demand there is for the lent-out security.
3. The institutional investor or lender often reinvests the collateral in order to collect additional interest or income while their shares are out on loan.
4. Borrowers tend to be other banks, hedge funds, or broker-dealers, as well as sometimes other lending agents. When the borrower is done using the shares, they return them back to the lender.
5. If the collateral posted was in the form of cash, a proportion of the revenue earned from reinvesting is sometimes given back to the borrower.

For retail investors versus institutional ones, they should learn whether their brokerage offers securities lending or share lending programs. It’s important for individual investors to know that for dividend stocks, they would get some form of payment from the borrower, rather than the dividend itself. This payment may be taxed at a higher rate than a dividend payout.

Share Lending and Short Selling

In order to short a stock, investors first borrow shares. They then sell these shares to another investor or trader, with the hope that when the stock price falls, the short seller can buy them back and pocket the difference before returning the loaned shares.

In share lending, a share can only be lent out once, but when the borrower is a short seller, they can sell it, and the new buyer can lend it again. This is why the short float–the percentage of the share float that is shorted–can rise above 100% in a stock.

The fee generated by renting out shares depends on their availability. A small number of stocks tend to account for a large proportion of revenue in securities lending.

For instance, data from DataLend show that in 2020, of the $7.66 billion generated in securities lending revenue, $482 million was generated by lending out just five stocks.

Criticism of Securities Lending

In December 2019, Japan’s Government Pension Investment Fund announced that it will halt stock lending, saying the practice is not in line with its goals as a long-term investor. The world’s largest pension fund cited a lack of transparency on who is the ultimate borrower of the loaned securities, as well as why they were borrowing.

This became a bigger concern for investors after the “cum-ex” scandal in Germany, where borrowed shares were used in a tax evasion scandal.

Another one of the biggest criticisms of share lending is that voting rights of the actual stock transfers to the borrower. This challenges the traditional model where institutional investors vote and push for change in companies in order to maximize shareholder value for their investors. Money managers can recall shares in order to cast a vote in an upcoming shareholder meeting. But there are concerns they don’t and it’s unclear how often they do.

Another concern has been that share lending programs incentivize money managers to own stocks that are popular to borrow. A 2017 academic paper updated in November 2020 found that mutual funds that practice securities lending tend to overweight high-fee stocks and then underperform versus funds that do not rent out shares.

Potential Risks of Share Lending

Retail investors should take note that securities that have been loaned are not protected by the Securities Investor Protection Corporation (SIPC ). The SIPC however does protect the cash collateral received for the loaned securities for up to $250,000.

Another concern is the increase in counterparty risk. Let’s say for example a short seller’s wager goes sour. If the shorted stock rallies enough, the short seller could default and there’s a risk that the collateral posted to the lender isn’t enough to cover the cost of the shares on loan.

Separately, the lender, whether they’re a pension or an ETF provider, typically reinvests the cash collateral in order to earn additional interest. Bad bets could cause the value of the investment to drop. During the 2008 financial crisis, some funds lost money from reinvesting the collateral in risky assets.

The Takeaway

Share lending or securities lending is a small but reliable source of revenue for institutional investors and brokerage firms, who get to rent out shares that otherwise would have sat idly in portfolios. The practice has ramped up in recent years as management and brokerage fees have shrunk dramatically due to competition and the popularity of index investing.

Proponents argue that securities lending helps pay for the cost of running money management funds and brokerage platforms, which in turn allows investors to benefit from lower fees.

Critics argue that a loss of voting rights and a lack of transparency are problematic, as well as the risk that share lending can distort mutual fund portfolios to overweight stocks that are popular to borrow, hence more likely to generate revenue.

SoFi Invest® makes money from interest earned on uninvested cash in accounts and lending out securities, as well as a small amount from payment for order flow. Users of the platform can pick between an Active Investing or Automated Investing account, depending on how hands-on or hands-off they want to be. Members also have access to a financial planner who can help them make better informed investment decisions.

Open a SoFi Invest account today.



SoFi Invest®
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Source: sofi.com

7 Best Personal Finance Books to Read of All Time

Most Americans today are woefully lacking in financial literacy. A 2018 study by the FINRA Foundation found that only one in three Americans could correctly answer at least four out of five questions about simple financial concepts like compound interest and inflation. And our lack of knowledge is hurting us. In a 2019 survey by The National Financial Educators Council, 1,500 Americans said their poor financial fitness had cost them an average of $1,230 in the past year.

One way to improve your financial literacy is to read up on the subject. At your local library or bookstore, there are hundreds of books on all aspects of dealing with money, from basic budgeting to early retirement.

Best Personal Finance Books

Of course, there’s no way you could read every single personal finance book on the market. Fortunately, you don’t need to. Most books on a particular financial topic cover pretty much the same ground. There are several books on money that offer a broad, all-around primer on personal finance and money management. They’re the perfect way for financial newbies to learn the basics of earning, saving, investing, and developing smart money habits.

1. “The Richest Man in Babylon” by George S. Clason

In the 1920s, George S. Clason wrote a series of informational pamphlets for banks and insurance companies to hand out to their customers. But he didn’t simply lay out facts like a textbook. Clason illustrated financial principles through parables — specifically, short stories set in ancient Babylon. The stories were such a hit in 1926 that they were bound together and published as a book.

This classic text remains popular with 21st-century readers because it presents sound financial wisdom in a clear, compelling way. It emphasizes principles like living within your means, saving for retirement, and avoiding risky investments and get-rich-quick schemes.

Because this older book is no longer under copyright, you can read the full text for free online at the Internet Archive. But if you prefer a bound copy, you can buy it from Amazon or Bookshop.

2. “The Index Card” by Helaine Olen and Harold Pollack

If you want a more modern, straightforward approach to personal finance, check out “The Index Card: Why Personal Finance Doesn’t Have to Be Complicated.” It boils down the basics of money management to 10 simple rules short enough to fit on a 4-by-6-inch index card.

The idea grew out of a 2013 interview of Olen in which Pollack offhandedly commented that the best financial advice could fit on an index card. It prompted a flood of requests for such a card and eventually inspired the two to turn the idea into a book.

Pollack and Olen focus on common-sense rules, such as “strive to save 10 to 20% of your income” and “pay your credit card balance in full every month.” Each of these principles gets its own chapter. But they’re also laid out in a list you can copy onto an index card for easy reference. This book is an excellent choice for beginners and anyone who likes easily digestible advice that’s easy to remember.

3. “The Automatic Millionaire” by David Bach

Of David Bach’s 12 books on personal finance, 11 have been national bestsellers, and two — including “The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich” — have hit the No. 1 spot on The New York Times bestseller list. In this volume, he outlines a plan not to get rich fast but to get rich slowly and surely over your lifetime.

The key to Bach’s system is setting up an automatic investment plan through which you invest just a few dollars every single day. He explains how to redirect a few dollars per day into investments by looking for what he calls your personal “latte factor” — small regular expenses that add up. By “paying yourself first” and making your plan automatic, he argues, you can build wealth steadily, even if you don’t earn a high income.

4. “Women & Money” by Suze Orman

Numerous studies show that women handle money differently from men. Some of these differences are healthy. Women tend to be more cost-conscious shoppers, save more of our income, and be more cautious about debt.

However, women also have weak points where money is concerned. Women generally earn less and are more timid about investing in the stock market. Put that together with the fact that women often take time out of careers to raise children full-time, and it all adds up to lots of women lagging behind men on the road to financial freedom.

Financial guru Suze Orman wants to change that. In “Women & Money,” she talks frankly about how problems like fear and embarrassment can hold women of all ages back where money is concerned. Then she shows how to tackle these problems head-on and achieve your financial goals. From buying a car to investing for retirement, taking out student loans to making money decisions with a spouse, Orman covers everything women need to know about money but are too often afraid to ask.

5. “Broke Millennial” by Erin Lowry

When it comes to money, the millennial generation faces a different set of challenges than older folks. Compared to earlier generations, they’re burdened with higher student loan debt, lower incomes, and less job stability. As a result, many millenials struggle to build a secure financial foundation.

In “Broke Millennial: Stop Scraping By and Get Your Financial Life Together,” financial expert Erin Lowry offers advice specifically for Generation Y. Lowry goes beyond the basics of budgeting and investing to explore the psychological side of money. She helps readers understand their relationship with money and how it can help or hurt them. She discusses ways to handle tricky situations such as splitting a check with a group of friends and talks about how to get “financially naked” with a partner and talk honestly together about money.

To appeal to the younger set, Lowry peppers the text with amusing stories and hashtags like #GYFLT — get your financial life together. She also gives the chapters whimsical titles, including “Is Money a Tinder Date or Marriage Material?” and “Paying Rent to your ’Rents.” Yet wrapped in the humor is vital information about paying off debt, buying a home, and saving for retirement. In a New York magazine roundup of personal finance books, financial expert Farnoosh Torabi says Lowry’s book perfectly “captures the financial zeitgeist of this generation.”

6. “You Are a Badass at Making Money” by Jen Sincero

Most financial guides tackle the nuts and bolts of handling money, like saving for retirement or paying off credit card debt. Jen Sincero’s “You Are a Badass at Making Money: Master the Mindset of Wealth” takes a different approach. She focuses on the ability to make money as largely a matter of attitude. With cheeky humor, she explains how to break the mental habits that can hold you back and helps you learn to recognize and seize opportunities.

A Business Insider review of this book concedes that it’s a bit short on “actionable financial advice.” You won’t find concrete tips here on starting a business, building an emergency fund, or choosing a financial advisor. What this book offers instead is a good, solid kick in the pants. If there’s something you’ve always wanted to do — change careers, start a business, travel the world — but doubt and fear have held you back, this is the book you need.

7. “I Will Teach You To Be Rich” by Ramit Sethi

When you see a book called “I Will Teach You To Be Rich,” you might expect it to contain some kind of get-rich-quick scheme that promises — but can’t deliver — big bucks with minimal effort. Fortunately, Ramit Sethi’s classic work is more than that. Instead, it provides a crash course in handling your money and building wealth.

“I Will Teach You To Be Rich” covers every aspect of your financial life. In 13 chapters, Sethi explains how to:

What reviewers love about Sethi’s program is the way it takes the effort out of money management. He breaks down financial planning into simple steps that are easy to put into action. His style can come across as harsh at times, with stinging criticism of “crybabies” and “victim culture.” But the message behind it — that your financial future is in your hands — is valuable and empowering.


Final Word

The books on this list provide a solid grounding in the basics. However, there’s lots more to explore beyond that. Once you understand the essentials, you can seek out other books to help you dive into the details of specific topics. There are books to help you get out of debt, books on investing, books on home buying, and books on how to achieve financial independence.

As you search for new finance books, examine them carefully to ensure they’re useful and reliable sources. Look at the authors’ histories and credentials to see what makes them qualified to advise others on financial matters. Are they finance professionals, journalists, or people writing from personal experience? Learning about the authors helps you avoid falling for bogus investment advice and get-rich-quick schemes that have no real results to back them up.

Also, because one of the keys to gaining wealth is to keep a lid on your spending, it makes sense to pick up the books you want as cheaply as possible. Along with your local library, check out secondhand bookstores, online sellers, and book swaps to save money on books.

Source: moneycrashers.com

Generation Z Spending Habits for 2021 – Lexington Law

generation z girl grocery shopping with her smartphone

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

Generation Z—the 18 to 24 year old digital natives born who can’t recall a world without smartphones and rapid technology—now make up 20 percent of the U.S. population. Born after 1997, this cohort is making their mark in the economy as they spend an estimated $143 billion per year. The eldest members are in their early 20s, graduating college and entering the workforce for the first time. 

This generation differs greatly from their predecessors in saving, spending and overall money management habits, as well as what they value most in the brands they interact with, the type of jobs they’re after, and their goals for the future. 

Here are a few key characteristics of this generation:

  • Their ability to find answers quickly by accessing information online enables them to make informed decisions and become smart shoppers.
  • Many have called this generation the most financially savvy because of their keenness for saving paired with their thrifty, entrepreneurial spirits.
  • Their sense of independence and self-reliance is partially because of the digital world they grew up in—many received their first mobile device by the age of 10. 

Read on to learn more about Generation Z’s spending habits and their other financial patterns as we enter 2021.

How Generation Z Shops Online and Offline

Generation Z is known as the first digitally native generation and does not differentiate between online and offline channels. Having grown up in a hyperconnected world, they expect the same quality and speed of an online channel to translate to the physical stores they visit. They’re also much savvier with online shopping channels than their predecessors and aren’t easily swayed by gimmicks or celebrity influencers. Take a look at how Gen Z shops.

Online Shopping Habits

Since this generation never knew a world without the internet, they have high expectations for online channels and a low tolerance for any slowdowns or glitches. Members of this cohort place a high value on technology and having the information they need at their fingertips. 

They’re also skeptical about giving away their information since they’ve grown up in an age of high-profile data breaches for major brands. Read through our stats below to learn how Gen Z behaves online:

Gen Z spent over 8 hours a day online in 2020.
  • 26 percent of Gen Z report using social media to make a purchase in 2020. [Source: National Retail Federation]
  • Only 25 percent of Gen Z said they feel in control of their data online in 2020. [Source: Global Web Index]
  • 60 percent of Gen Z would prefer to keep their data over exchanging it for free services in 2020. [Source: Global Web Index]
  • Gen Z reports spending around four and a half hours on their mobile devices per day in 2020. [Source: Global Web Index]
  • Gen Z reports spending a little over three and a half hours per day on their laptops in 2020. [Source: Global Web Index]
  • Gen Z spent over 8 hours a day online in 2020. [Source: Global Web Index]
  • 28 percent of Gen Z consider a simple online checkout experience as a purchase driver in 2020. [Source: Global Web Index]
  • 58 percent of Gen Z report free delivery as a major purchase driver in 2020. [Source: Global Web Index]
  • 43 percent of Gen Z cite coupons and discounts as a major purchase driver in 2020. [Source: Global Web Index]
  • 72 percent of Gen Z reports purchasing an item online in the last month at the time of being surveyed in 2019, whether on a computer or their mobile device. [Source: Global Web Index]
  • 41 percent of Gen Z paid for a purchase using their mobile phone in 2019. [Source: Global Web Index]
  • At the time of being surveyed in 2019, 80 percent of Gen Z said they browsed an online retail store in the last month using a mobile device. [Source: Global Web Index]
  • At the time of being surveyed in 2019, 56 percent of Gen Z said they browsed an online retail store in the last month using a PC or laptop. [Source: Global Web Index]
  • At the time of being surveyed in 2019, 73 percent of Gen Z said they used a mobile device in the last month to search for an item they wanted to buy. [Source: Global Web Index]
  • At the time of being surveyed in 2019, 41 percent of Gen Z said they used a PC or laptop in the last month to search for an item they wanted to buy. [Source: Global Web Index]
  • A poor shopping experience prevented 22 percent of Gen Z from making a purchase online at least three to four times in 2019. [Source: Kearney]
  • 82 percent of Gen Z said that peer reviews were extremely important to them when shopping online in 2019. [Source: Kearney]
  • 77 percent of Gen Z said that personalized recommendations were extremely important to them when shopping online in 2019. [Source: Kearney]
  • 62 percent of Gen Z report being worried about how companies use their personal data in 2019. [Source: Global Web Index]
  • At the time of being surveyed in 2019, 61 percent of Gen Z said they made a purchase online in the last month using a mobile device. [Source: Global Web Index]
  • At the time of being surveyed in 2019, 32 percent of Gen Z said they made a purchase online in the last month using a PC or laptop. [Source: Global Web Index]
  • 46 percent of Gen Z said they had used an ad-blocker in the last month at the time of being surveyed in 2020. [Source: Global Web Index]
  • Only 26 percent of Gen Z said they were comfortable with their apps tracking their activity in 2020. [Source: Global Web Index]
  • 62 percent of Gen Z reported using a private browsing window in the last month at the time of being surveyed in 2019. [Source: Global Web Index]
  • 50 percent of Gen Z reported deleting cookies online in the last month at the time of being surveyed in 2019. [Source: Global Web Index]
  • 33 percent of Gen Z reported using a VPN or Proxy Server in the last month at the time of being surveyed in 2020. [Source: Global Web Index]
  • Of the Gen Z who used an ad-blocker in 2019, 49 percent report doing so because they thought there were too many ads online. [Source: Global Web Index]
  • 23 percent of Gen Z said they blocked ads in 2019 because they were annoying or irrelevant. [Source: Global Web Index]
  • 40 percent of Gen Z reported using another device to shop online while watching TV in 2019. [Source: Global Web Index]

Brick-and-Mortar Shopping Habits

Contrary to what you might think, the majority of Gen Z prefers to make purchases in store. One reason could be that they lack access to credit cards to make online purchases (although they do use debit cards.) We may see this preference change over time.

However, it’s important to note that members of Generation Z are not blinded by technological “bells and whistles” with any shopping channel. Their priorities lie in the basic retail experience: product availability, quality products and efficient service. While they may be swayed as long as any addition enhances the shopping experience, they have a low tolerance for negative or inefficient experiences while they shop. Read on to see what expectations Gen Z has for their brick-and-mortar shopping trips:

  • Contrary to the nickname of “digital nomads” that many have dubbed them with, 81 percent of Gen Z still said they like shopping in-store in 2019. [Source: Kearney]
  • 74 percent of Gen Z cited a “well curated store experience focused on a limited number of products” as either extremely or moderately important to them in 2019. [Source: Kearney]
  • 73 percent of Gen Z said they utilize shopping in-store as a way to discover new products in 2019. [Source: Kearney]
  • 65 percent of Gen Z said they preferred shopping at brick-and-mortar stores in order to trial purchases in 2019. [Source: Kearney]
  • 55 percent of Gen said they planned to do their holiday shopping at brick-and-mortar stores in 2019. [Source: Shopkick via Retail Dive]
  • When asked what they want in a brick-and-mortar store, 83 percent of Gen Z reported having access to things like maps and kiosks was either extremely or moderately important to them in 2019. [Source: Kearney]
  • 79 percent of Gen Z believe that security elements (such as guards) are important in a brick-and-mortar environment. [Source: Kearney]
  • 86 percent of Gen Z said they’re after special promotions, like free samples and giveaways, in the brick-and-mortar stores they visit. [Source: Kearney]
  • A poor shopping experience prevented 24 percent of Gen Z from making a purchase in store at least three to four times in 2019. [Source: Kearney]
  • 8 percent of Gen Z said a poor shopping experience prevented them from making a purchase in store at least five to ten times in 2019. [Source: Kearney]
58% of Gen Z generally agree they use shopping in-store as a way to disconnect from social media.
  • 66 percent of Gen Z said they’d be inclined to shop at physical stores offering technology that enhanced their shopping experience. [Source: Kearney]
  • 72 percent of Gen Z want retail technology that can lessen the time they spend standing in line. [Source: Kearney]
  • 61 percent of Gen Z would like retail technology that streamlines the process of finding the products they’re looking for in stores. [Source: Kearney]
  • 58 percent of Gen Z said they use shopping in-store as a way to disconnect from social media in 2019. [Source: Kearney]

How Gen Z Views Brands

Members of Generation Z expect brands to be transparent, ethical and responsible in all aspects of their business. Neglecting to do so can result in a lost opportunity to collect information or lost business altogether from this generation.

Generation Z cares far more about the value and quality of their purchases than their loyalty to the brand that makes them, so brands need to work extra hard to keep Gen Z’s business around. Take a look at the different brand preferences Gen Z has and what they expect from today’s brands:

  • 72 percent of Gen Z said they’d more readily make a purchase from brands they follow on social media in 2020. [Source: National Retail Federation]
  • 47 percent of the Gen Zers following brands on Instagram in 2020 have purchased something directly through the platform. [Source: National Retail Federation] 
  • 23 percent of Gen Z report following social media accounts or brands they might make a purchase from in 2020. [Source: Global Web Index] 
  • A nod to their proposed lack of brand loyalty, Gen Z is 22 percent more likely to unfollow a brand online. [Source: Global Web Index]
  • 75 percent of Gen Z said they engage with brands on Instagram in 2020. [Source: National Retail Federation]
  • Only 15 percent of Gen Z feel represented in the brand advertisements they see in 2020. [Source: Global Web Index]
  • 56 percent of Gen Z believe brands should be innovative in 2020. [Source: Global Web Index]
  • 38 percent of Gen Z believes brands should be young in 2020. [Source: Global Web Index]
  • 42 percent of Gen Z believe brands should be trendy or cool in 2020. [Source: Global Web Index]
  • 40 percent of Gen Z believe brands should make you feel valued in 2020. [Source: Global Web Index]
  • 35 percent of Gen Z believe brands should offer customized products that are personalized to their needs in 2020. [Source: Global Web Index]
  • 33 percent of Gen Z believe brands should support charities in 2020. [Source: Global Web Index]
Only 15% of Gen Z feel represented in the ads they see.
  • 58 percent of Gen Z prefer their purchases to come in eco-friendly packaging. [Source: Kearney]
  • 60 percent of Gen Z said that endorsements on social media from non-celebrities were extremely important to them when shopping online in 2019. [Source: Kearney]
  • 51 percent of Gen Z said that endorsements on social media from celebrities were extremely important to them when shopping online in 2019. [Source: Kearney]
  • 83 percent of Gen Z said no matter what level of trust they hold for a brand, they still do their research before purchasing from them. [Source: IBM]
  • 57 percent of Gen Z said they want their purchases to be environmentally sustainable in 2019. [Source: Kearney]
  • 50 percent of Gen Z said they’re after locally sourced products in 2019. [Source: Kearney]
  • 79 percent of Gen Z cited health and wellness benefits as important to them when choosing what to buy. [Source: IBM]
  • 71 percent of Gen Z cited natural or organic ingredients as important to them when choosing what to buy. [Source: IBM]

Financial Habits

Despite their young age, Generation Z holds $34 billion in buying power alone in 2020, and influenced household spending to the tune of $600 billion. In addition to their own dollars, they also exercise a lot of influence over their households. Their digital savviness comes into play once again in this area. Their expertise enables them to guide their families through different purchase phases, from initial product evaluation to the final purchase itself.

Members of Gen Z are also financially savvy and keen on earning money, even at their young age. Freedom and flexibility at work are key values of this generation, and the job opportunities they flock to will be those that offer work-life balance and some level of autonomy over their schedule.

  • Gen Z had an average of $115 in spending money each month in 2020. [Source: YPulse]
  • 36 percent of the 2020 workforce was projected to be made up by Gen Z employees. [Source: Financial Executives International]
  • 68 percent of Gen Z used some form of budgeting system in 2020. [Source: Nerd Wallet]
  • 30 percent of Gen Z had credit card debt in 2020. [Source: Nerd Wallet]
  • 87 percent of parents said their Gen Z children had a level of influence over the purchases they made in 2019, whether for the household or for their children. Source: [National Retail Federation]
  • Gen Z kids influenced 48 percent of purchases their parents made for them in 2019. [Source: National Retail Federation]
  • Gen Z kids influenced 36 percent of household purchases made by their parents in 2019. [Source: National Retail Federation]
  • Gen Z reported wanting to work in interactive work environments that provide flexibility and work life balance in 2019. [Source: Workforce Institute]
  • 32 percent of Gen Z said they’re the hardest working generation in 2019. [Source: Workforce Institute]
  • 26 percent of Gen Z said they’d be willing to work longer hours in return for a flexible work schedule in 2019. [Source: Workforce Institute]
  • 31 percent of Gen Z reported feeling hopeful about their future of work in the U.S. in 2019. [Source: Workforce Institute]
  • 57 percent of Gen Z reported expectations of being promoted at least once per year in 2019. [Source: Workforce Institute]
  • 44 percent of Gen Z said they value good healthcare coverage from their employer over paid time off in 2019. [Source: Workforce Institute]
  • Many Gen Z cohorts say they would prefer to do gig work, and 46 percent of them took on some form of gig work in 2019. [Source: Workforce Institute]
  • Only 10 percent of Gen Z solely worked gig jobs in 2019. [Source: Workforce Institute]
  • 18 percent of Gen Z worked part time gig work in 2019. [Source: Workforce Institute]
  • 18 percent of Gen Z took on gig work in addition to another job in 2019. [Source: Workforce Institute]

Gen Z vs. Millennials

Millennials have been center stage for many years, and understandably so—they recently became America’s largest generation, reaching 72.1 million, surpassing the 70 million Baby Boomers living in the U.S. As Millennials begin to age out, however, Generation Z is beginning to capture the world’s attention with their different spending, saving and earning habits. Millennial spending habits differ quite a bit from their Gen Z counterparts. This is partially because Gen Z is very price conscious and focuses on overall value when making buying decisions. We can see these differences when comparing preferences and priorities with different products and services.

  • While 55 percent of Gen Z said they planned to do their holiday shopping at brick-and-mortar stores, 32 percent of Millennials said they planned to do their holiday shopping through their mobile phones. [Source: Shopkick via Retail Dive]
  • 75 percent of millennials are willing to pay more for great customer experiences compared to 69 percent of Gen Z. [Source: Salesforce]
  • While 76 percent of Millennials cited natural or organic ingredients as important in the products they purchase, only 71 percent of Gen Z said the same. [Source: IBM]
  • While 79 percent of Millennials cited sustainability as important in the products they purchase, only 75 percent of Gen Z said the same. [Source: IBM]
75% of millennials are willing to pay more for great customer experiences compared to 69% of Gen Z.
  • While 81 percent of Millennials cited purchasing “clean” products as important to them, only 75 percent of Gen Z said the same. [Source: IBM]
  • While 78 percent of Millennials cited purchasing products that support recycling as important to them, only 72 percent of Gen Z said the same. [Source: IBM]
  • Millennials and Gen Z share similar habits when it comes to data privacy: 31 percent of Millennials and 33 percent of Gen Z said they used a VPN or Proxy Server inthe last month at the time of being surveyed in 2020. [Source: Global Web Index]
  • Similarly, 45 of Millennials and 46 percent of Gen Z said they used an ad-blocker in the last month at the time of being surveyed in 2020. [Source: Global Web Index]

The 67.7 billion members of this generation are a group to watch as they grow up and enter the workforce. Their financial management looks to be off to a strong start thanks to their frugal mindsets and entrepreneurial attitudes. They’ve proven so far that they’re ready to responsibly make and manage their money, and that they have high expectations when it comes to what they spend it on.

 Teens and young adults who are after a financially successful future should not only make plans to keep down debt, but also learn how to build and manage their credit. This includes applying for credit cards, keeping payments down and checking your credit report often to make sure everything is accurate. If you do find any inaccuracies on your credit report like an account you don’t recognize, you can call to learn about how Lexington Law’s credit repair services can help clean up your credit report.

Source: lexingtonlaw.com

Mvelopes Review: Digitize the Cash Envelope Method With This App

The cash envelope budgeting method can be a very effective way to control your spending.

The premise is simple. You come up with spending limits for your variable expenses, like groceries, eating out or entertainment. Next, you fill up envelopes with cash to match what you’ve budgeted for each category.

As you shop throughout the month, you can only spend the amount of money in your envelopes. Once you’ve run out of cash, you’ve got to freeze spending until it’s time to fill the envelopes again.

There’s one significant flaw in this budgeting method though: What if you don’t shop with cash? Many people opt for online shopping or use a debit or credit card rather than dollars and coins.

Fortunately, there are ways to adapt the cash envelope budget for cashless shoppers. One of the solutions is to use a budgeting app, like Mvelopes.

In this Mvelopes review, we’ll explain how this app works to help you keep your spending in check.

What Is Mvelopes?

Mvelopes is a budgeting app from Finicity, a fintech company owned by Mastercard. It’s based on the cash envelope system, so all of the categories you set up in your budget are essentially your digital envelopes.

Mvelopes syncs to your financial accounts, so whenever you pay a bill, shop online or swipe your debit card, that transaction shows up in the app. The app uses bank-level encryption to keep your information safe.

Once you assign the transaction to its appropriate envelope, you’ll automatically see how much money you have left to spend in that category. And if you do happen to use cash for something, you can manually enter that info in the app.

How to Get Started with Mvelopes

You can download the Mvelopes app for your Apple or Android mobile device — or you can create an account and manage your money straight from your computer.

Mvelopes offers three tiers of service. Mvelopes Basic costs $5.97 per month or $69 per year and lets you set up your budget by syncing to all your financial accounts. The next step up is Mvelopes Premier, which costs $9.97 per month or $99 per year and includes access to the Mvelopes Learning Center and Debt Reduction Center.

The Mvelopes Learning Center has online video lessons on topics like mastering your spending, creating an emergency fund, insuring your future, home buying and how to have stress-free holidays. With the Debt Reduction Center, you get support to create a tailor-made debt payoff plan.

The app’s top tier of service is Mvelopes Plus. This plan connects you with a real-live personal finance trainer for one-on-one virtual sessions four times a year. You’ll also get higher priority customer service support. Mvelopes Plus costs $19.97 a month or $199 a year.

Although there is no free version of Mvelopes, you can sign up for a 30-day free trial of Mvelopes Premier — the app’s most popular option — to test out the service with no financial commitment.

The Pros and Cons of Mvelopes

Mvelopes can sync with over 16,000 financial institutions, so most users can track their spending with minimal effort. Keeping your spending in check means you can free up more money to go toward saving or debt.

According to the company, Mvelopes has helped users save an average of $6,175 and pay off an average of $17,425 of debt.

One disadvantage of this app, however, is that it’s not free, like the budgeting apps Mint or Clarity Money. Also, if you’re looking for a tool that tracks more aspects of your financial life, such as your net worth and where you stand with your investments, you might want to consider an app like Personal Capital.

Who Is Mvelopes For?

The Mvelopes app is a great option for fans of the cash envelope method who are looking to digitize their money management.

It is also a good choice for people looking to nix overspending, because the app keeps you up-to-date with how much funds you have left to spend in each budget category.

Additionally, Mvelopes can help you boost your personal finance knowledge via online courses or pay down debt with a tailored payoff plan.

By signing up for the free 30-day trial, you’ll have a month to decide whether Mvelopes is the right choice for you.

Nicole Dow is a senior writer at The Penny Hoarder.

Source: thepennyhoarder.com

Generation Z Spending Habits for 2021

generation z girl grocery shopping with her smartphone

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

Generation Z—the 18 to 24 year old digital natives born who can’t recall a world without smartphones and rapid technology—now make up 20 percent of the U.S. population. Born after 1997, this cohort is making their mark in the economy as they spend an estimated $143 billion per year. The eldest members are in their early 20s, graduating college and entering the workforce for the first time. 

This generation differs greatly from their predecessors in saving, spending and overall money management habits, as well as what they value most in the brands they interact with, the type of jobs they’re after, and their goals for the future. 

Here are a few key characteristics of this generation:

  • Their ability to find answers quickly by accessing information online enables them to make informed decisions and become smart shoppers.
  • Many have called this generation the most financially savvy because of their keenness for saving paired with their thrifty, entrepreneurial spirits.
  • Their sense of independence and self-reliance is partially because of the digital world they grew up in—many received their first mobile device by the age of 10. 

Read on to learn more about Generation Z’s spending habits and their other financial patterns as we enter 2021.

How Generation Z Shops Online and Offline

Generation Z is known as the first digitally native generation and does not differentiate between online and offline channels. Having grown up in a hyperconnected world, they expect the same quality and speed of an online channel to translate to the physical stores they visit. They’re also much savvier with online shopping channels than their predecessors and aren’t easily swayed by gimmicks or celebrity influencers. Take a look at how Gen Z shops.

Online Shopping Habits

Since this generation never knew a world without the internet, they have high expectations for online channels and a low tolerance for any slowdowns or glitches. Members of this cohort place a high value on technology and having the information they need at their fingertips. 

They’re also skeptical about giving away their information since they’ve grown up in an age of high-profile data breaches for major brands. Read through our stats below to learn how Gen Z behaves online:

Gen Z spent over 8 hours a day online in 2020.
  • 26 percent of Gen Z report using social media to make a purchase in 2020. [Source: National Retail Federation]
  • Only 25 percent of Gen Z said they feel in control of their data online in 2020. [Source: Global Web Index]
  • 60 percent of Gen Z would prefer to keep their data over exchanging it for free services in 2020. [Source: Global Web Index]
  • Gen Z reports spending around four and a half hours on their mobile devices per day in 2020. [Source: Global Web Index]
  • Gen Z reports spending a little over three and a half hours per day on their laptops in 2020. [Source: Global Web Index]
  • Gen Z spent over 8 hours a day online in 2020. [Source: Global Web Index]
  • 28 percent of Gen Z consider a simple online checkout experience as a purchase driver in 2020. [Source: Global Web Index]
  • 58 percent of Gen Z report free delivery as a major purchase driver in 2020. [Source: Global Web Index]
  • 43 percent of Gen Z cite coupons and discounts as a major purchase driver in 2020. [Source: Global Web Index]
  • 72 percent of Gen Z reports purchasing an item online in the last month at the time of being surveyed in 2019, whether on a computer or their mobile device. [Source: Global Web Index]
  • 41 percent of Gen Z paid for a purchase using their mobile phone in 2019. [Source: Global Web Index]
  • At the time of being surveyed in 2019, 80 percent of Gen Z said they browsed an online retail store in the last month using a mobile device. [Source: Global Web Index]
  • At the time of being surveyed in 2019, 56 percent of Gen Z said they browsed an online retail store in the last month using a PC or laptop. [Source: Global Web Index]
  • At the time of being surveyed in 2019, 73 percent of Gen Z said they used a mobile device in the last month to search for an item they wanted to buy. [Source: Global Web Index]
  • At the time of being surveyed in 2019, 41 percent of Gen Z said they used a PC or laptop in the last month to search for an item they wanted to buy. [Source: Global Web Index]
  • A poor shopping experience prevented 22 percent of Gen Z from making a purchase online at least three to four times in 2019. [Source: Kearney]
  • 82 percent of Gen Z said that peer reviews were extremely important to them when shopping online in 2019. [Source: Kearney]
  • 77 percent of Gen Z said that personalized recommendations were extremely important to them when shopping online in 2019. [Source: Kearney]
  • 62 percent of Gen Z report being worried about how companies use their personal data in 2019. [Source: Global Web Index]
  • At the time of being surveyed in 2019, 61 percent of Gen Z said they made a purchase online in the last month using a mobile device. [Source: Global Web Index]
  • At the time of being surveyed in 2019, 32 percent of Gen Z said they made a purchase online in the last month using a PC or laptop. [Source: Global Web Index]
  • 46 percent of Gen Z said they had used an ad-blocker in the last month at the time of being surveyed in 2020. [Source: Global Web Index]
  • Only 26 percent of Gen Z said they were comfortable with their apps tracking their activity in 2020. [Source: Global Web Index]
  • 62 percent of Gen Z reported using a private browsing window in the last month at the time of being surveyed in 2019. [Source: Global Web Index]
  • 50 percent of Gen Z reported deleting cookies online in the last month at the time of being surveyed in 2019. [Source: Global Web Index]
  • 33 percent of Gen Z reported using a VPN or Proxy Server in the last month at the time of being surveyed in 2020. [Source: Global Web Index]
  • Of the Gen Z who used an ad-blocker in 2019, 49 percent report doing so because they thought there were too many ads online. [Source: Global Web Index]
  • 23 percent of Gen Z said they blocked ads in 2019 because they were annoying or irrelevant. [Source: Global Web Index]
  • 40 percent of Gen Z reported using another device to shop online while watching TV in 2019. [Source: Global Web Index]

Brick-and-Mortar Shopping Habits

Contrary to what you might think, the majority of Gen Z prefers to make purchases in store. One reason could be that they lack access to credit cards to make online purchases (although they do use debit cards.) We may see this preference change over time.

However, it’s important to note that members of Generation Z are not blinded by technological “bells and whistles” with any shopping channel. Their priorities lie in the basic retail experience: product availability, quality products and efficient service. While they may be swayed as long as any addition enhances the shopping experience, they have a low tolerance for negative or inefficient experiences while they shop. Read on to see what expectations Gen Z has for their brick-and-mortar shopping trips:

  • Contrary to the nickname of “digital nomads” that many have dubbed them with, 81 percent of Gen Z still said they like shopping in-store in 2019. [Source: Kearney]
  • 74 percent of Gen Z cited a “well curated store experience focused on a limited number of products” as either extremely or moderately important to them in 2019. [Source: Kearney]
  • 73 percent of Gen Z said they utilize shopping in-store as a way to discover new products in 2019. [Source: Kearney]
  • 65 percent of Gen Z said they preferred shopping at brick-and-mortar stores in order to trial purchases in 2019. [Source: Kearney]
  • 55 percent of Gen said they planned to do their holiday shopping at brick-and-mortar stores in 2019. [Source: Shopkick via Retail Dive]
  • When asked what they want in a brick-and-mortar store, 83 percent of Gen Z reported having access to things like maps and kiosks was either extremely or moderately important to them in 2019. [Source: Kearney]
  • 79 percent of Gen Z believe that security elements (such as guards) are important in a brick-and-mortar environment. [Source: Kearney]
  • 86 percent of Gen Z said they’re after special promotions, like free samples and giveaways, in the brick-and-mortar stores they visit. [Source: Kearney]
  • A poor shopping experience prevented 24 percent of Gen Z from making a purchase in store at least three to four times in 2019. [Source: Kearney]
  • 8 percent of Gen Z said a poor shopping experience prevented them from making a purchase in store at least five to ten times in 2019. [Source: Kearney]
58% of Gen Z generally agree they use shopping in-store as a way to disconnect from social media.
  • 66 percent of Gen Z said they’d be inclined to shop at physical stores offering technology that enhanced their shopping experience. [Source: Kearney]
  • 72 percent of Gen Z want retail technology that can lessen the time they spend standing in line. [Source: Kearney]
  • 61 percent of Gen Z would like retail technology that streamlines the process of finding the products they’re looking for in stores. [Source: Kearney]
  • 58 percent of Gen Z said they use shopping in-store as a way to disconnect from social media in 2019. [Source: Kearney]

How Gen Z Views Brands

Members of Generation Z expect brands to be transparent, ethical and responsible in all aspects of their business. Neglecting to do so can result in a lost opportunity to collect information or lost business altogether from this generation.

Generation Z cares far more about the value and quality of their purchases than their loyalty to the brand that makes them, so brands need to work extra hard to keep Gen Z’s business around. Take a look at the different brand preferences Gen Z has and what they expect from today’s brands:

  • 72 percent of Gen Z said they’d more readily make a purchase from brands they follow on social media in 2020. [Source: National Retail Federation]
  • 47 percent of the Gen Zers following brands on Instagram in 2020 have purchased something directly through the platform. [Source: National Retail Federation] 
  • 23 percent of Gen Z report following social media accounts or brands they might make a purchase from in 2020. [Source: Global Web Index] 
  • A nod to their proposed lack of brand loyalty, Gen Z is 22 percent more likely to unfollow a brand online. [Source: Global Web Index]
  • 75 percent of Gen Z said they engage with brands on Instagram in 2020. [Source: National Retail Federation]
  • Only 15 percent of Gen Z feel represented in the brand advertisements they see in 2020. [Source: Global Web Index]
  • 56 percent of Gen Z believe brands should be innovative in 2020. [Source: Global Web Index]
  • 38 percent of Gen Z believes brands should be young in 2020. [Source: Global Web Index]
  • 42 percent of Gen Z believe brands should be trendy or cool in 2020. [Source: Global Web Index]
  • 40 percent of Gen Z believe brands should make you feel valued in 2020. [Source: Global Web Index]
  • 35 percent of Gen Z believe brands should offer customized products that are personalized to their needs in 2020. [Source: Global Web Index]
  • 33 percent of Gen Z believe brands should support charities in 2020. [Source: Global Web Index]
Only 15% of Gen Z feel represented in the ads they see.
  • 58 percent of Gen Z prefer their purchases to come in eco-friendly packaging. [Source: Kearney]
  • 60 percent of Gen Z said that endorsements on social media from non-celebrities were extremely important to them when shopping online in 2019. [Source: Kearney]
  • 51 percent of Gen Z said that endorsements on social media from celebrities were extremely important to them when shopping online in 2019. [Source: Kearney]
  • 83 percent of Gen Z said no matter what level of trust they hold for a brand, they still do their research before purchasing from them. [Source: IBM]
  • 57 percent of Gen Z said they want their purchases to be environmentally sustainable in 2019. [Source: Kearney]
  • 50 percent of Gen Z said they’re after locally sourced products in 2019. [Source: Kearney]
  • 79 percent of Gen Z cited health and wellness benefits as important to them when choosing what to buy. [Source: IBM]
  • 71 percent of Gen Z cited natural or organic ingredients as important to them when choosing what to buy. [Source: IBM]

Financial Habits

Despite their young age, Generation Z holds $34 billion in buying power alone in 2020, and influenced household spending to the tune of $600 billion. In addition to their own dollars, they also exercise a lot of influence over their households. Their digital savviness comes into play once again in this area. Their expertise enables them to guide their families through different purchase phases, from initial product evaluation to the final purchase itself.

Members of Gen Z are also financially savvy and keen on earning money, even at their young age. Freedom and flexibility at work are key values of this generation, and the job opportunities they flock to will be those that offer work-life balance and some level of autonomy over their schedule.

  • Gen Z had an average of $115 in spending money each month in 2020. [Source: YPulse]
  • 36 percent of the 2020 workforce was projected to be made up by Gen Z employees. [Source: Financial Executives International]
  • 68 percent of Gen Z used some form of budgeting system in 2020. [Source: Nerd Wallet]
  • 30 percent of Gen Z had credit card debt in 2020. [Source: Nerd Wallet]
  • 87 percent of parents said their Gen Z children had a level of influence over the purchases they made in 2019, whether for the household or for their children. Source: [National Retail Federation]
  • Gen Z kids influenced 48 percent of purchases their parents made for them in 2019. [Source: National Retail Federation]
  • Gen Z kids influenced 36 percent of household purchases made by their parents in 2019. [Source: National Retail Federation]
  • Gen Z reported wanting to work in interactive work environments that provide flexibility and work life balance in 2019. [Source: Workforce Institute]
  • 32 percent of Gen Z said they’re the hardest working generation in 2019. [Source: Workforce Institute]
  • 26 percent of Gen Z said they’d be willing to work longer hours in return for a flexible work schedule in 2019. [Source: Workforce Institute]
  • 31 percent of Gen Z reported feeling hopeful about their future of work in the U.S. in 2019. [Source: Workforce Institute]
  • 57 percent of Gen Z reported expectations of being promoted at least once per year in 2019. [Source: Workforce Institute]
  • 44 percent of Gen Z said they value good healthcare coverage from their employer over paid time off in 2019. [Source: Workforce Institute]
  • Many Gen Z cohorts say they would prefer to do gig work, and 46 percent of them took on some form of gig work in 2019. [Source: Workforce Institute]
  • Only 10 percent of Gen Z solely worked gig jobs in 2019. [Source: Workforce Institute]
  • 18 percent of Gen Z worked part time gig work in 2019. [Source: Workforce Institute]
  • 18 percent of Gen Z took on gig work in addition to another job in 2019. [Source: Workforce Institute]

Gen Z vs. Millennials

Millennials have been center stage for many years, and understandably so—they recently became America’s largest generation, reaching 72.1 million, surpassing the 70 million Baby Boomers living in the U.S. As Millennials begin to age out, however, Generation Z is beginning to capture the world’s attention with their different spending, saving and earning habits. Millennial spending habits differ quite a bit from their Gen Z counterparts. This is partially because Gen Z is very price conscious and focuses on overall value when making buying decisions. We can see these differences when comparing preferences and priorities with different products and services.

  • While 55 percent of Gen Z said they planned to do their holiday shopping at brick-and-mortar stores, 32 percent of Millennials said they planned to do their holiday shopping through their mobile phones. [Source: Shopkick via Retail Dive]
  • 75 percent of millennials are willing to pay more for great customer experiences compared to 69 percent of Gen Z. [Source: Salesforce]
  • While 76 percent of Millennials cited natural or organic ingredients as important in the products they purchase, only 71 percent of Gen Z said the same. [Source: IBM]
  • While 79 percent of Millennials cited sustainability as important in the products they purchase, only 75 percent of Gen Z said the same. [Source: IBM]
75% of millennials are willing to pay more for great customer experiences compared to 69% of Gen Z.
  • While 81 percent of Millennials cited purchasing “clean” products as important to them, only 75 percent of Gen Z said the same. [Source: IBM]
  • While 78 percent of Millennials cited purchasing products that support recycling as important to them, only 72 percent of Gen Z said the same. [Source: IBM]
  • Millennials and Gen Z share similar habits when it comes to data privacy: 31 percent of Millennials and 33 percent of Gen Z said they used a VPN or Proxy Server inthe last month at the time of being surveyed in 2020. [Source: Global Web Index]
  • Similarly, 45 of Millennials and 46 percent of Gen Z said they used an ad-blocker in the last month at the time of being surveyed in 2020. [Source: Global Web Index]

The 67.7 billion members of this generation are a group to watch as they grow up and enter the workforce. Their financial management looks to be off to a strong start thanks to their frugal mindsets and entrepreneurial attitudes. They’ve proven so far that they’re ready to responsibly make and manage their money, and that they have high expectations when it comes to what they spend it on.

 Teens and young adults who are after a financially successful future should not only make plans to keep down debt, but also learn how to build and manage their credit. This includes applying for credit cards, keeping payments down and checking your credit report often to make sure everything is accurate. If you do find any inaccuracies on your credit report like an account you don’t recognize, you can call to learn about how Lexington Law’s credit repair services can help clean up your credit report.

Source: lexingtonlaw.com