Understanding Gen Z: Unique Traits and Financial Preferences Uncovered

Posted By: Blog

Who Are Gen Zs?

Gen Zs are typically known as individuals born from 1996 to 2012. They are considered digital natives, being born into a world filled with technology. They are children, teenagers, and young adults who are navigating through various aspects of life, such as their careers, and are also paying attention to financial aspects.

By 2025, KPMG forecasts that a massive 970 million individuals from Generation Z will be part of the tech-savvy crowd, with access to the Internet and smartphones. That's a huge number of people! Let's dive deeper into the world of Gen Z and explore what sets them apart in today's society.

How Does Gen Z Think and Work?

Gen Z Prefers Digital Over Paper

It's crucial for us to grasp the mindset and behaviors of Gen Z to effectively communicate with them. My children, along with many others in their generation, are digital natives who prefer everything in a digital format. It is either their phone or laptop for the tasks. No paper, no signing forms, and definitely no old-school methods are allowed for them.

Gen Z Wants Experiences, Not Assets

Gen Z has no interest in acquiring assets or properties. Villas are not on their wishlist either. What they truly desire is to immerse themselves in the villa lifestyle for a short time just as an experience, if you will. It's all about valuing experiences over material possessions, a mindset completely different from the previous generation where their focus was on accumulating assets.

We emerged from a background that can only be described as deprived, lacking in resources and opportunities. In contrast, the current generation, Gen Z, comes from a background of abundance. They don't have the same difficulties that we experienced. As a result, their way of thinking is uniquely shaped, and there's nothing inherently wrong with that. However, as investment advisors or professionals, we need to acknowledge and analyze how they differ significantly from the majority.

6 Unique Traits That Differentiate Gen Z From Others

1. Gen Z Wants Everything To Be Quick, Simple And Intuitive

I've identified six characteristics that set Gen Zs apart. First is that they prefer things to be fast, easy, and straightforward in all aspects of their lives. If I spend 5 minutes explaining something to them, they'll tune out after just 30 seconds. That's why I need to capture their attention within the first 30 seconds, or the message will be lost. Keeping it simple is key. It needs to be simple and straightforward. The key is to bridge the knowledge gap efficiently without overwhelming them with unnecessary details. Less is more!

2. Gen Z Wants Everything To Be Transparent

Additionally, transparency is a must for them. They seek clarity on what's included and prefer upfront information without any hidden clauses. Gen Z values quick solutions and efficiency, making it essential to meet their needs promptly.

3. Gen Z Wants Stupendous Returns

Gen Z is after impressive returns. They do not view returns in comparison to bank fixed deposits or rates. They are aiming for a 20% return. They are aiming for a 25% return. They have no interest in bank fees, banks are not a consideration for them. For many, the bank is just a phone. Some Gen Z individuals may surprise you by claiming that a bank is like a building where people reside. They view the bank as merely a place to store money temporarily, without considering it as an investment opportunity. Their mindset is truly one of a kind.

4. Gen Z: The Digital Natives Who Want Services To Be Digital 

When it comes to servicing or customization, their methods are entirely digital. Don't expect them to make a physical visit to your office for assistance. Waiting patiently for service is not their thing. Instead, they'll take to Twitter and tag you to raise any problems they encounter. It's essential to recognize the importance of promptly addressing their needs. How Can Businesses Appeal to Gen Z? To cater to this group effectively, you must be socially, electronically, and digitally equipped. Keep in mind that they represent a substantial portion of the population.

5. Gen Z’s Goals Are Different From The Other Generations

Our ambitions and goals differ from theirs. For instance, when I began my professional life, my initial priorities revolved around starting a family, owning a car, and investing in a house. These were significant milestones to achieve.  

However, I believe that Gen Z, as a whole, is unlikely to pursue this traditional path. That's the impression I get when I talk to a lot of them. To them, it's all about the car first, then maybe marriage. A home? Not a priority. But traveling? Definitely. Exploring new destinations? Absolutely. Yes.

The secret to assisting millennials lies in their financial preparedness. Instead of forcing upon them things they may not value, let's empower them to financially plan for the experiences they truly crave. By supporting their financial journey, we can help them make their dreams a reality.

6. Gen Z Wants Everything To Be Fun

And finally, let's not forget the importance of making it fun for them. They firmly believe that money and investing don't have to be all serious and boring. It's time for us to step up and provide an experience that is not only simpler but also more exciting than what we've been accustomed to. I truly believe that this is exactly what Gen Z is seeking.

While some apps may already be meeting this need, here at Finsherpa, we are committed to closely monitoring and empowering Gen Z with the financial literacy they need to build the wealth they dream of.

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