Every generation has its challenges and concerns. According to a study by Cigna, 34% of Gen Zs are worried about the future and 24% are uneasy regarding the lack of learning and jobs. They have experienced how the global pandemic has changed the economic landscape and how inflation continues to negatively impact the purchasing power of consumers. Although these challenging times are really setbacks, Gen Zs or Zoomers are resilient enough to move forward and create a brighter future.
As Gen Zs usher in 2024, we can start the year with a positive outlook and renewed optimism. Sure there may be monetary difficulties but looking at the brighter side, we can overcome these financial challenges that confront us. Here are practical tips that can help us get by as we work toward financial stability this 2024.
5 Tips on Overcoming Financial Challenges
1. Practice sound financial management to avoid getting into debt
Managing money well includes taking care of daily expenses and avoiding impulsive purchases, especially if we are using credit cards. By avoiding the crippling high debt loads, we can feel more financially secure which lessens our stress. You can avoid debt through these tips:
Spend less than what you are earning. Setting a weekly or monthly budget can help Gen Zs become aware of how to spend money properly.
- If you have credit cards, pay debts on time to prevent them from piling up which makes it harder to pay.
- Choose the right financial products to start preparing for the future. There will always be an affordable plan that fits the budget.
2. Find valuable job roles in 2024 as machine learning advances
As the new workforce, Gen Zs are worried about their future in the workplace. We can alleviate this concern by searching for new industries and job roles that need distinct skill sets. With the advances in technology, Gen Zs can study machine learning which can be highly in demand in the years to come. This branch of artificial intelligence (AI) can be interesting for the younger generation who are more technologically savvy.
With the rising cost of commodities these days, Gen Zs may find it difficult to meet their needs with the salaries they are earning. A recent survey shows that 65% of Filipino Gen Zs have either a part-time or full-time job aside from their primary source of income. Income-replacement investments can help cover increasing expenses to establish financial stability in the future. This is a way of preparing for whatever surprises life throws at you along the way.
3. Enhance your critical thinking in the age of finfluencers and misinformation
As digital natives, it is easier for us to look for financial resources online. There are “finfluencers” (finance influencers) on social media platforms and finance-focused apps on smartphones. While there is a plethora of information that we can gather on the internet, we must be aware of the rampant misinformation and fake news being published online. Boost critical thinking by fact-checking and assessing the credibility of online news.
Beware of financial scams and the pitfalls of easy money, usually with just one click of the button. Although the lure of earning money easily can be tempting, we need to avoid taking such risks. Instead, we can build a successful financial future the right way by getting a suitable insurance plan.
Sun StartUp can protect for at least 10 years and gives back a portion of your total payment if you outlive the 10-year coverage period. This is a good choice for first-time insurance buyers who want a simple, affordable, and hassle-free application.
4. Cope with the rising cost of housing and long-term investments through fiscal discipline
Owning a house at a young age can be quite a challenge unless you come from a wealthy family. With high rental costs these days, Gen Zs experience difficulties in saving enough money for a down payment. What more if you are saving for the expensive cost of homeownership? But this is not to say that it is impossible to achieve.
Being more disciplined in handling our money is essential if we are looking to own a house a few years from now. This is also applicable if we are saving for long-term investments. Through an Investment Calculator, we can see how our money can grow over time which we can use to accomplish our life goals like owning a house or having a stable investment.
5. Build healthy habits early to mitigate future medical costs
It is essential to develop healthy habits to prevent sickness that may strain our financial resources. As Gen Zs, we can foster wellbeing through a healthy lifestyle:
- Eat fruits and vegetables
- Exercise or engage in physical activities such as sports
- Drink enough water to prevent dehydration
- Avoid excessive alcohol intake
- Get sufficient sleep at night
- Avoid smoking
Suffering from an illness can cost us a huge amount of money and if we are not financially prepared, the medical costs can wipe out our savings. As we save money for the future, let us also start saving our health from ailments by building healthy habits now.
As your Partner in Life, Sun Life offers different health protection plans so you can be financially prepared when sickness strikes.
- Sun LifeAssure offers protection benefits against any covered critical illness conditions so you and your family can have peace of mind no matter what happens.
- SUN Fit and Well is a New Generation Wellness plan suitable for young people who want to stay healthy from prevention until recovery. It offers critical illness and life insurance benefits until age 100 with bonus disease prevention programs.
- Sun First Aid is an affordable life insurance that provides cash benefits so you can worry less about costly medical bills due to hospital confinement or surgery.
Generation Z can overcome financial challenges and be financially secure. Start working on your bright future this 2024. It all begins with a goal and work hard toward it. What do you want to achieve financially as a Gen Z? Sun Life can guide you. Talk to one of our financial advisors today.
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