But Gen Z is also by far the smartest generation, with quick adoption of budget apps, mobile wallets and investment platforms. The result is a generation that redefines the meaning of managing money in Canada today.
By number
Workers of all ages must compete with stagnant wages and irregular jobs, and Gen Z will become the youngest workers in the country.
The latest report from fintech company Koho paints a grim picture of Canadian youth. According to their number, only 41% of Z are used full-time and are unemployed nearly 20%. With an average monthly income of only $1,083, it’s no surprise that nearly half of people are looking to take more jobs next year, with only 29% saying they feel financially stable.
Not surprisingly, there isn’t much room for swing in the Gen Z budget. Respondents reported abandoning investment, savings and luxury goods such as travel covering the basics, and many also cut their discretionary spending (52%) or borrowing from their families (28%) to do it.
These findings are not surprising to labor market observers, but here are some of the numbers: According to a recent survey by the National Payroll Institute (NPI), Gen Z workers saved an average of 11% of each paycheck, higher than any other generation. 30% of Gen Z respondents have saved $10,000 or more in the past year only.
Here is another Stunner: A recent TD survey shows that Gen Z has consistently invested more than anyone else in Canada.
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Young Investors
According to the survey, only 49% of Canadians feel they are investing enough, but there is a clue on the data on the differences between Gen Z investors and other workers. All 45% of respondents believed that lack of confidence in their investment knowledge was a factor.
Gen Z, on the other hand, is not waiting for an appointment with a financial advisor to make an investment decision. They are getting advice from social media, podcasts, and Tiktok, and then they are downloading investment apps and opening up a tax-free savings account (TFSA).
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In short, young investors are using young people’s tools to educate themselves and invest money in the future.
Salary and portfolio
Few people will choose to return to the pressures of their early careers, especially now, with wages stagnant and the cost of living soaring. However, Gen Z can at least survive without thriving, and despite the challenging environment, they are looking for a way to build investment. They want salary and portfolio. That’s how they do it.
Generation Z is using budgets to identify and reduce discretionary spending. They know that if you save regularly, even a small amount will add up, so “good at owning” can wait. As a digital native generation, Gen Z educates itself by using freely used resources such as podcasts and social media. Then, it’s important that they use the financial app and invest online, starting with leveraging tax-promotion accounts like TFSA and the first Housing Savings Account (FHSA).
Z Century Understand the motto: “Pay first.”
A new financial culture
Generation Z enters adulthood when housing prices are lower than before, wages usually lag behind rising costs, and debt loads increase at a worrying rate. However, instead of retreating, many are looking for creative ways to master control – relying on debits and mobile wallets to manage daily expenses and supplement income with side hustles or gig work.
Although challenges are real and lasting, this generation is willing to learn, experiment and rethink traditional monetary methods that show that they are not only difficult conditions for survival, but also lay the foundation for a new financial culture.
Although the financial path ahead may be uncertain, the adaptability, digital savage and determination of Generation Z suggest that they are capable enough to determine a stable future and can reshape the financial stability of subsequent generations.
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