Money Matters - Gen Z and Inflation

 Gen Z is the most burdened by inflation, with 46% saying it’s holding them back more than their income, debt, or housing costs, according to WalletHub’s Generational Finances Survey, released today. WalletHub’s survey asked about everything from how people feel about homeownership and where they get their financial advice to whether they maintain a monthly budget and how confident they are in their financial knowledge and skills. You can find highlights from the survey below.

Key Findings:

• Inflation’s Biggest Victims: Gen Z is the most burdened by inflation, with 46% saying it’s holding them back more than their income, debt, or housing costs.
   
• Financially Lost: Gen Z is the least financially confident generation, as more than 1 in 4 Gen Zers say they are not confident in their financial knowledge and skills.
   
• Savings Over Stocks: 66% of Gen Zers think savings accounts are the best way to invest their money, while 38% of Millennials think that investing in stocks is a better option.
   
• Family Over Finance Pros: While 58% of Baby Boomers, 43% of Millennials and 41% of Gen Xers prefer a financial professional as their go-to source for financial advice, 50% of Gen Zers prefer a family member.
   
• Money-Savvy Millennials: 71% of Millennials think they’re better with money than their parents, but only 48% of Gen Zers feel the same way.
   
• In Over Their Heads: Gen Z and Gen X have the least confidence in their ability to manage debt, with around 20% of them rating their capabilities as poor, compared to just 11% of Boomers and 10% of Millennials.
  
   

“Inflation has hit everyone hard in recent years, but the youngest consumers seem to be the most burdened, according to a new WalletHub survey, which found that 46% of Gen Zers say inflation is holding them back more than things like their income, debt or housing costs. Youth and inexperience have a lot to do with this, as young people have never really seen serious inflation before, but a general lack of financial literacy is playing a big role, too. More than 1 in 4 Gen Zers are not confident in their financial knowledge and skills, and two-thirds of them think putting money in a savings account is a better investment than buying stocks. We really need to make financial literacy a required part of the curriculum, so young people can hit the ground running when they enter the workforce. Right now, they’re on their heels.”

- John Kiernan, WalletHub Editor




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