It’s that time of year, Gen Z!
Time for New Year’s resolutions, and we all know the drill: lose weight, quit that bad habit your mom keeps bringing up at every family dinner (or maybe finally stop ignoring her texts). But what if this is the year you get serious about your finances? Let’s face it, whether you’re barely scraping by or sitting on a stack of cash, many of us still don’t fully understand how money works – and we’ve all heard the excuses: “We weren’t taught this in school” or “Our parents didn’t teach us.”
Since working in the financial industry, I’ve learned that personal finance isn’t just for the wealthy, it’s for everyone. It’s a tool that helps you live your life – not the other way around. Whether you’re drowning in debt or buying avocado toast with no shame, it’s time to take control of your financial health.
So, Gen Z … what if this year, you stopped working for your money and made your money start working for you? This is not the year to just worry about hitting the gym; it’s about getting your financial muscles in shape.
This is not the year to just worry about hitting the gym; it’s about getting your financial muscles in shape.
And don’t worry, you’re not alone. I interviewed everyone from Boomers to Gen Z because we’ve all been there. Just run your own race – no need to compare. This could be the year your financial health hits its peak.
Tim, a Baby Boomer, has one valuable piece of advice: “No amount of money is too little.” He shared how he funded his annual softball tournament by collecting loose change in a Coke bottle. Over time, those coins added up to cover a $2,000 expense. Tim’s method is a reminder that small, consistent contributions can make a big difference.
For Jenny, a Gen-Xer, finances were a rollercoaster, from student loan debt to credit card struggles. “We went pretty extreme for a while to pay off our debt,” she said. “But now, we’re able to save for the future, even if we’re a little behind.” Her most valuable lesson from the 2008 financial crisis? “Don’t put all your eggs in one basket.” After seeing her father’s GM stock collapse, Jenny learned the importance of diversification.
Millennials like Brittany have learned to live below their means, which is key in navigating rising costs. “I believe financial freedom gives you more opportunities to live life how you want,” she shared. Brittany recommends that her peers pay off debt quickly, set saving goals and embrace lower-cost activities. “Instead of buying movies on Amazon, check out your local library!”
As for Tyler, a Gen-Zer, he’s just starting his investment journey. “I’m building up my 401k for now,” he said, “and I’m keeping an eye on how technology, like AI, will evolve in investing.” For Tyler, financial planning apps are lifesavers: “They help guide me through the tough financial stuff, so I’m not just guessing.” Automating savings and using budgeting apps can help you bulk up finances.
Take a cue from the lessons of those who’ve been there: start saving early, diversify your investments and avoid the traps of debt.
An overflowing piggy bank represents both savings and financial education.
When it comes to financial health, you must consider the challenges of your generation. Is it a marathon, a stroll to the fridge or somewhere in between? For Jenny, financial health is a slow and steady race, “You put in the effort and thought and eventually, you cross the finish line of retirement.” Whether you’re jogging, walking or sprinting, the key is to keep moving toward your goals. “Right now, I’d say I’m doing calisthenics,” Tyler laughs. “It’s basic, low-stress and as a beginner, it feels like the best fit.” Brittany, on the other hand, describes her approach as more of a “marathon,” although last year had her “walking around the block.”
“Personal circumstances changed my financial goals, but I’ll be back to the marathon pace soon,” she says. Tim, ever the strategist, chimes in, “Definitely a marathon – long-term planning!”
As we step into the New Year, setting financial goals can feel like a daunting task. But for Tyler, it’s all about resisting the temptation to touch his 401k. “I want to see how long I can go without dipping into it,” he says.
Brittany has big plans too, aiming to beef up her 401k and save for a house down-payment. “I’ll stick to my budget much more strictly this year,” she promises, after a year of “splurging and living my life.” The key to successful investing is having a plan and staying committed to it.
In the spirit of a “Healthy New Year,” financial health is just as crucial as physical well-being. When asked about financial advice they wish they had received earlier in life, Tyler shared, “I think car loans are a trap. If I could go back, I’d rethink how I got my first car.” Brittany, on the other hand, wishes she had started saving earlier, saying, “I should’ve put something into an account as early as 18, not 25!” Tim admitted, “I didn’t get credit until I was 23. If my parents had taught me about it at 16, it would’ve saved a lot of headaches.” Jenny’s advice? “Compound interest is powerful! Start young, sacrifice a little and avoid debt. That small investment today can be huge tomorrow.”
Remember, financial health is just as important as physical well-being. It’s never too late to start taking small, consistent steps toward improving your financial future. Whether you’re just beginning your journey or refining your strategy, the key is to stay committed and keep moving forward. Take a cue from the lessons of those who’ve been there: start saving early, diversify your investments, and avoid the traps of debt. And most importantly, don’t let the fear of mistakes hold you back. Just like any other form of fitness, financial health is about progress, not perfection. So, as you set your goals for 2025, consider adding financial wellness to the list, and take the first step toward a brighter, more secure future.
