Saving Tips from a Gen Zer

As a Gen Zer fairly new to the 9-5 workforce, I have my fair share of budgeting and saving troubles. With social media and new advancements in technology constantly influencing our lives, how can we utilize our internet literacy to make smart financial decisions?

Be Wary of the TikTok ‘Financial Advisors’

There are many people online giving financial advice and it can be overwhelming to determine who is offering the right tips. It might be obvious to ignore the “get rich quick” videos, but social media is making it easier and easier to spread potentially damaging advice. Some signals from creators that may make you want to proceed with caution include:

• The creator is using blanket statements and absolutes
• The creator is creating a sense of urgency
• The creator has no evidence of a financial background on their profile

Who & What to Trust for Financial Advice

While it’s hard to discern professionals from the amateurs in social media apps, it is important to know how to look for the right people when looking for helpful advice. Here are some things to search for when looking for financial advice:

• Look for peer-reviewed academic resources and studies
• Find professionals with designations directly related to financial advice (CFP®, CPA, CFA, CHFC)
• Schedule a financial counseling session with your credit union or bank

Make a Plan that Works for You

Don’t believe what social media tries to tell you. There’s no one-size-fits-all for anything, especially budgeting. Make a virtual financial vision board with goals, specific as possible, and rank them in priority order. Add some visuals and glitter glue, and then make sure to revisit those goals quarterly to track progress and adjust if needed.

If you have trouble with accountability, consider working with your partner, family member, friend, or a financial planner to keep you on track.

(Soft) Save Responsibly

A new trending phrase, “soft saving,” is making its rounds among Gen Z, but there’s nothing new about the concept. Soft saving refers to putting less money into the future and using more of it for the present. The ‘soft’ lifestyle embraces comfort and low stress and prioritizes personal growth and mental wellness.

Social media entices us to pursue the soft saving lifestyle, with videos and images of others spending their money on sometimes excessive and lavish luxuries. For generations, many Americans have spent their excess income on lifestyle and dedicated nearly nothing for the future.

However, living in a scarcity mindset is not always necessary to save a little for the future. The key is to make a budget and stick to it. Without a budget, soft saving can cause your lifestyle to increase to match your income, causing a paycheck-to-paycheck outcome. Keep and follow a budget that makes sense for your lifestyle, and then save the excess you have to put toward your top financial goals.

___________________________________________________________

Molly McKim is the Communications Editor at CrossState Credit Union Association. She joined the team part-time in March 2023 and became a full-time employee in May 2023 when she graduated from Messiah University in Mechanicsburg, PA. Molly enjoys baking, a good book, tattoos, and her cat, Fluffy.