Despite Millennials having the reputation of being lazy and only living for the ‘now’, switching jobs regularly, and practising heavily within the gig economy to allow themselves a better work-life balance, they have proven themselves to be generally more financially savvy with respect to saving for retirement than older generations. Their increased financial responsibility is due to having entered the workforce during the Great Recession and discovering early on that even a life-long commitment to a company is no guarantee of financial security in later life. This realisation led many Millennials to make active in-roads towards financial freedom, even with the odds stacked against them. And this same responsible attitude towards money seems to be even more evident in upcoming Gen Zs.
With both these younger generations having come of age in uncertain economic times, they understand that financial safety is not a given, and that they need to make what little money they have work hard for them. To that end, these generations’ tech savviness is proving a game-changer in their ability to save.
That is, while their financial futures might be less certain than their older cohorts, they are embracing their ability to harness technology to track their savings through the use of nest egg calculators. They’re also far more likely to use gamification to make saving fun and motivate themselves through digital means to save more money wisely.
Since financial calculators and tracking apps help consumers visualise their saving and spending habits and set future financial goals, it becomes easier for them to take control of their finances and save effectively for their futures. This bodes well for these younger generations who, with time, may well begin making up current savings deficits and undoing the ravages on their future savings caused by multiple recessions and constant inflation.