Half of Gen Zers say they don’t see a point in saving money until things return to 'normal' — instead they're investing in themselves. Here's what that looks like
For 18-year-old Anousha Ahmed, her first job meant freedom.
“My focus wasn't really saving. It was more like, now I have all this discretionary income. I can do whatever I want,” says Ahmed, who is based in Virginia.
She briefly worked at a swim school for children earlier this year, which earned her some fun money for experiences like concerts, traveling, eating at restaurants and going roller skating.
Ahmed isn’t the only one in her age bracket putting savings on the back burner. Fidelity Investments’ 2022 State of Retirement Planning report found that half of Gen Zers don’t see a point in saving money until things return to “normal,” while 56% put their retirement planning on hold during the pandemic.
These percentages were slightly lower for millennials, and significantly lower for the Gen X and boomer generations, who are much closer to or are already in their retirement years.
Ahmed says the COVID-19 pandemic showed plenty of young people how quickly their “normal” can be stolen away — so she has prioritized making up for those missed years with exciting experiences and good memories.
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Young people are investing in themselves
With all the economic uncertainty going on right now, many young folks may be seeking some sort of control, says Lauryn Williams, a certified financial planner and founder of Worth Winning, a company that helps young professionals organize their finances.
She points to stubborn inflation — the consumer price index was a distressing 7.1% in November — and stock market volatility. Americans are facing financial strain due to rising housing and grocery costs. It's also difficult to put faith in the stock market, which has seen some significant ups and downs this year.
Right now, when she’s looking at and even which classes she’ll take, she wants to make sure they’re ones that will give her a “high return on investment” at the end of it.
Not putting money into a retirement fund isn’t necessarily a bad thing, she explains — your might just look a little different if you’ve decided to focus on your professional growth instead.
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