Millennials vs Gen Z: How They Handle Money Differently

Millennials and Gen Zs are two generations that differ not only in their cultural tastes but also in how they handle money. Marnus Mostert, Franchise Principal & Financial Adviser at Consult by Momentum, sheds light on the financial behaviors of these two groups.

Millennials, born between 1981 and 1996, came of age during economic turbulence, particularly the Global Recession of 2008. This experience has shaped their cautious spending habits and strong inclination towards saving and investing. They prioritize financial stability, often using budgeting apps and investing in retirement savings.

On the other hand, Gen Zs, born between 1997 and 2012, have grown up in a digital-first world. They prioritize convenience and instant access to goods and services, often using fintech apps for banking and investing. Gen Z values financial flexibility and tends to save for immediate goals rather than long-term investments.

While Millennials focus on long-term financial security, aiming to buy homes and save for retirement, Gen Z seeks financial independence and flexibility. However, they tend to spend impulsively on immediate needs and desires.

Mostert offers six tips for Gen Z for better money management:
1. Balance immediate and long-term goals
2. Stay informed about financial products and market trends
3. Build an emergency fund
4. Avoid impulsive spending
5. Invest wisely by diversifying investments
6. Find a trusted financial planner to help achieve financial goals.

Understanding the differences in how Millennials and Gen Zs handle money can provide valuable insights for both generations to improve their financial management skills.