Defined as “digital natives” and “truth seekers” on a quest for information and individual expression, Gen Z-ers have proven they are extremely pragmatic - which might be why they’re such good savers, according to a recent study conducted by the Student Village research agency.
The study shows that nearly 40% of Gen Z students are saving 20% to 40% of their monthly income, with one in five saving 40% to 60% of it.
Student Village chief executive Ronen Aires said these youth showed greater responsibility in managing their debt and were spending less on cars and motorbikes, which were viewed as unnecessary in the pursuit of independence.
The report showed that as Gen Zs’ income increased, their spending remained consistent, but the amount they put away each month increased.
“Gen Z-ers are rebelling against the ‘consumerism’ mentality and are rather choosing financial security over flashy cars and other luxuries,” Aires said.
The study found that Gen Z youth boasted an entrepreneurial spirit, as a high school study conducted by Student Village showed that 64% of students in this group wanted to start their own business.
Their largely independent and entrepreneurial mindsets suggest they highly value freedom and the opportunity to explore what excites them most in life,” read one of the findings.
The study also found that technology made it very easy to earn extra income through their unused resources.
The study revealed that Gen Z was born into a society where technology was commonplace and an enabler of most day-to-day activities. This has led to them being quick to embrace new technology. The study found that technology greatly assisted the youth to manage their financial lives better by using banking apps and budget apps anywhere to easily keep track of their finances and save.
Aires said: “Gen Z are hard at work, gearing towards self-directed liberation, showing greater accountability and resourcefulness than previous generations. Jobs are viewed as a thing of the past, as the mindset has shifted towards entrepreneurialism, with great ambition to improve not only ones own life, but the lives of family, friends, the country and the planet.”