Tag Archives: Gen Z

Must-Read Finance Ebooks that teach Gen Z How to Plan for the Future

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Image by Pexels

By Jack Andrews

For Financial Independence Hub

A recent study by Experian highlighted a troubling financial knowledge gap among Americans, especially younger generations.

Out of 2,000 adults surveyed, three out of five admitted that they have made expensive financial mistakes due to insufficient knowledge of credit and personal finance. Gen Z, in particular, faces significant challenges: 71% of respondents from this age group acknowledged that poor financial literacy has led to financial setbacks. Of these, 29% reported losses of $5,000 or more. These statistics underscore the urgent need for accessible and effective financial education.

Despite the evident need, a disconnect persists between the demand for financial education and its availability. While 78% of adults believe personal finance courses should be mandatory in high schools, only 25 states currently require such classes. This lack of structured education leaves many young people unprepared for essential financial responsibilities.

Gen Z is eager to learn about personal finance

However, there is hope: Gen Z is eager to bridge this knowledge gap. According to the same study, 80% of Gen Zers express a strong desire to improve their financial understanding, demonstrating a willingness to take charge of their financial futures.

The good news is that there’s a wealth of information available right at their fingertips. For example, there’s recently been an influx of reputable personal finance gurus sharing their knowledge on social media platforms. Former Wall Street trader-turned-financial influencer Vivian Tu is one of them. Known as Your Rich BFF on Instagram and TikTok, Tu has amassed over six million followers across her socials where she shares financial advice in the hopes of helping people live better, fuller financial lives. In addition to being a full-time content creator, Tu hosts a podcast called Networth and Chill and has written a bestselling book on all things related to personal finance.

 

Tu is far from being the only finance guru with a book worth reading. On Everand, you can find a plethora of personal finance ebooks that can help build your knowledge and your net worth. You can think about subscribing to this digital library as an investment. For an affordable monthly fee, you can access ebooks written by experts like David M. Rubenstein’s How to Invest and Steven A. Silbiger’s Retire Early?. So, if you’re ready to take charge of your financial freedom, here’s a list of the best finance ebooks to help you plan for the future:

How to Invest by David M. Rubenstein

 

Investing is one of the most effective ways to achieve financial independence, with a Youth & Money poll revealing that 63% of young adults believe the stock market is a great avenue for building wealth. Yet, many Gen Zers are not actively investing, often citing high living expenses or a lack of knowledge as barriers. This is where David M. Rubenstein’s How to Invest proves invaluable.

Rubenstein’s ebook is a deep dive into the principles of successful investing. Drawing on insights from some of the world’s most accomplished investors, the ebook provides readers with actionable strategies for navigating the financial markets. Whether you’re a novice or a seasoned investor, How to Invest delivers timeless wisdom and practical advice that can transform the way you approach investing. With Rubenstein’s guidance, young investors can gain the confidence and knowledge needed to grow their wealth.

Retire Early? Make the SMART Choices: Take It Now or Later? by Steven A. Silbiger

While Gen Z is proactive about managing immediate financial responsibilities, such as paying bills and budgeting, long-term financial planning often takes a backseat. According to a Newsweek report, 53% of Gen Zers have not yet contributed to a 401(k) or retirement plan, and 49% lack life insurance. These statistics highlight the importance of early retirement planning—an area expertly addressed in Steven A. Silbiger’s Retire Early? Make the SMART Choices. Continue Reading…

Gen Z driving surge in mobile Debit spending

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Image courtesy Interac Corp.

An Interac survey being released today finds that more than two thirds (69%) of Canada’s Gen Z generation [defined as Canadians aged 18 to 27] have embraced the mobile wallet, while almost as many (63%) would rather leave their old-fashioned physical wallets at home for short trips. Gen Z’s Interac contactless mobile purchases also rose 27% in the first half of 2024, compared to the same period a year earlier.

Gen Z appears to be more enthusiastic than their counterparts in older cohorts: 60% of Millennials [aged 28-43]  embraced mobile wallets, compared to 44% of Gen Xers [aged 44-59] and just 27% of Baby Boomers [aged 60-78.] Only 10% of the older Silent Generation [age 79 or older] did so.

A whopping 63% of Gen Z mobile wallet users have loaded their Interac debit card on their smartphones, and 31% plan to set debit as their default method of payment. For 63% of them, the reason is perceived faster payment times compared to physical card payments.

 “Choosing your default payment method may feel like a small step, but it can play a big role in shaping Canadians’ ongoing spending habits,” said Glenn Wolff, Group Head and Chief Client Officer, Interac in a press release. “When consumers tap to pay with their phones, the decision to select a card from the digital wallet is easy to miss. Canadians could end up unintentionally using a default payment method that prompts them to take on more debt. This differs from traditional physical wallets where the consumer had to select the card they wanted to use each time.”

Majority want to be smarter with money

62% of Gen Z want to be “more mindful when spending” with 57% saying they want the option to use debit when paying in store or online; 79% of them say the cost of living is too expensive and 59% feel the need to be smarter with their money.

Interact says this generation’s desire to control overspending is heightened by back-to-school season: last year, family clothing stores saw almost twice as many Interac Debit mobile purchases in September and October compared to earlier that year in January and February. 54% of Gen Zs see the need to develop new habits to stay in control over their finances, while 56% are setting a timeline for this September to introduce new habits. Continue Reading…

Gen Z and beyond leaning on debit to spend in times of economic uncertainty

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By William Keliehor, Interac Corp.

Special to Financial Independence Hub

Gen Z Concerns

Generation Z (Gen Z) is feeling the brunt of economic uncertainty in Canada as they enter the workforce and take on a whole host of financial ‘firsts’ – such as paying rent, saving for a vacation and purchasing groceries. More than any other generation, Gen Z is more likely to feel stressed (42 per cent), anxious (37 per cent), and overwhelmed (31 per cent), according to new research from Interac Corp.

Inflation is one of many factors serving as a hurdle for Gen Z and Canadians alike in their ability to stay on top of their money. In fact, 78 per cent of Gen Z respondents agree inflation and everyday essentials (75 per cent) are two external causes throwing a wrench in their ability to manage their finances.

Leaning on Interac Debit and Interac e-Transfer

Canadians will likely continue to contend with inflationary pressures for many months to come and it’s critical they’re equipped with tools that can help them stay in control.

Building healthy money habits such as creating a budget and using your own money are two ways to help navigate personal finances amid the current economic landscape. We’re hearing that Gen Z is doing just that – leaning on debit to take charge of their finances. Gen Z told us they are more likely (70 per cent) to frequently use debit, compared to 55 per cent of non-Gen Z Canadians polled in the Interac survey.

From the survey findings, we discovered that nearly half of Gen Z say they prefer to spend with debit so they’re only spending the money they have. Gen Z also told Interac that they feel more in control of their spending when using debit (46 per cent) and half of this generation of debit users (50 per cent) also say it’s easier to track their spending when using debit versus credit.

While there are many external factors that make it difficult to manage your finances, there are tools to help you stay in control of your day-to-day spending. For example, making Interac Debit the default payment in your mobile wallet or merchant app can help you spend the money you have in your account. Using debit for essential purchases can also help you stay on track and build good financial habits.

Canadians can also take charge of their financial well-being by using Interac e-Transfer to pay instantly or to split costs with others, making shared experiences more affordable and easier to track. This is a trend we began to see last year, as Interac e-Transfer hit one billion transactions. We’re seeing that Gen Z continues to rely on this tool, with nearly eight in ten (78 per cent) saying Interac e-Transfer is the simplest way for them to split costs so they can still get the most out of life and spend the money they have.

Essential spending continues

In times of uncertainty, debit remains an important and empowering tool, helping all generations across Canada stay in charge of their finances. While we’ve seen Canadians react to inflation and shift their spending accordingly, essential spending has continued. Canadians continue to spend the money they actually have in their accounts, as evidenced by year-over-year growth in Interac Debit (5 per cent) and Interac e-Transfer (11 per cent) volumes.

Additionally, year-over-year, Interac transaction data shows an increase in the number of transactions with InteracDebit at grocery stores and supermarkets as average basket sizes have decreased. Continue Reading…

Young Investors vs Inflation

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By Shiraz Ahmed, Raymond James Ltd.

Special to the Financial Independence Hub

Until recently young investors were not terribly concerned with inflation. Why should they have been? It was so low for such a long time that we could predict with pretty good accuracy what was around the corner, at least, in terms of the cost of living. But those days are long gone.

Simply speaking, inflation can be defined as the general increase in prices for those staple ingredients of daily life. Food. Gas. Housing. What have you. And as those prices rise the value of a purchasing dollar falls. When these things are rising at 1% a year, or even less, investors can plan and strategize accordingly. But when inflation is rising quickly, and with no end in sight, that is very different and this is where we find ourselves today.

Someone with hundreds of thousands of dollars to invest, but who must wrestle with mortgage payments that suddenly double, is into an entirely new area. It happened back in the early 1980s when mortgage rates went as high as 21%. Many people lost their homes. But even rates like that pale in comparison to historical examples of hyperinflation.

In the 1920s, the decade known as The Roaring Twenties, the stock market rose to heights never seen before and for investors it was seen as a gravy train with no end in sight. But that was not the case in Germany where a fledgling government – the Weimer Republic – was desperately trying to bring the country out of its disastrous defeat in World War I. Inflation in Weimer Germany rose so quickly that the price of your dinner could increase in the time it took to eat it!

Consider that a loaf of bread in Berlin that cost 160 German marks at the end of 1922 cost 200 million marks one year later. By the end of 1923 one U.S. dollar was worth more than four trillion German marks. The end result was that prices spiralled out of control and anyone with savings or fixed incomes lost everything they had. That in no small way paved the way for Adolf Hitler and the Nazis. Let us also not forget that the gravy train of the Roaring Twenties eventually culminated in the stock market crash of 1929 which led to the Great Depression.

Continue Reading…