When it comes to managing their finances, millennials and Gen Zers get a bad rap — but new research suggests that the younger generations might not be so bad with money after all.
According to payment solutions firm Klarna, money management is a priority for younger generations, with half of millennial and Gen Z consumers in the United States already set up with a rainy-day fund. What’s more, 53% of them (both demographics combined) consider themselves financially stable, while 52% said they were “financially savvy” and 38% believe they are more financially responsible than they’re given credit for.
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“Although younger generations are often thought of as being irresponsible with money, our research paints a different picture,” said Klarna’s head of U.S., David Sykes. “Our findings suggest that while the way they manage their money is different [than] older generations, millennials are conscious and conscientious when it comes to their finances.”
The banking firm surveyed more than 2,000 shoppers, uncovering attitudes toward and habits around money management across different age groups. The terms Gen Z and millennials refer to the group of 18 to 27 years old and 28 to 38 years years old.
Klarna added that technology plays a significant role in helping millennial and Gen Z shoppers manage their money: Nearly two-thirds use technology, such as budgeting tools, and about 63% agree that technology enables them to have better oversight of all their finances.
Millennials and Gen Zers are also more likely than older generations, said Klarna, to discuss money with friends, family and colleagues. Although 46% believe it’s important to talk openly about finances to avoid it becoming a taboo, 47% said that transparency around finances is “important for people’s wellbeing.”
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