Gen-Z’s financial aspirations surpass millennials amid economic challenges

Gen-Z adults are more likely than Millennials to have a five-year financial plan, according to a new survey by First Direct. The survey, conducted by OnePoll in October among 4,000 participants, found that 59% of Gen-Z savers—those born after 1996—have set financial goals for the next five years, compared to just 40% of Millennials (born between 1981 and 1996).
Despite a challenging economic environment, including rising living costs and wage stagnation, both generations remain committed to achieving their financial aspirations. Around 73% of Gen-Z respondents and 76% of Millennials said they are determined to reach their financial goals, though many have had to delay milestones like home ownership or career progression.
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For Millennials, the most common financial goals include achieving a better work-life balance (34%), saving for retirement (29%), and increasing income (29%). However, half (50%) of Millennials reported that the cost-of-living crisis has delayed their financial plans, with economic uncertainty and stagnant wages cited as major factors.
Carl Watchorn, head of banking at First Direct, commented, “Younger people have very high aspirations when it comes to achieving their financial goals. Despite facing challenges like higher living costs and the aftermath of the pandemic, they remain incredibly resilient and committed to improving their standard of living.”
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-First Direct also shared several tips for boosting financial resilience, including:
-Speak to your bank about available tools and support.
-Set specific goals, such as saving for a trip, and adjust spending to meet those targets within a set timeframe.
-Use budgeting apps to track spending and compare it with your goals.
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-Build a financial buffer by setting aside a regular amount each month, with some financial products offering good returns for consistent savings.
As both Gen-Z and Millennials navigate economic pressures, their focus on long-term financial planning highlights a generation committed to securing a stable future.