CCNB Featured in GS Magazine
Got My Mind On My Money and My Money On My Mind
Gen-Z may be our youngest generation, but we could learn a thing or two from them about how to save money
By Coastal Carolina National Bank
Almost intuitively, Snoop Dog’s lyrics “Got my mind on my money, and my money on my mind” (Gin & Juice, 1993) teed up the next generation’s overarching sentiment towards money and personal finance. Even as teens and recent college grads, Generation Z keeps personal finance top-of-mind and a priority. This generation continues to raise the bar when it comes to saving for the future.
Zoomers born between 1995 and 2012, were paying attention as they watched their parents and generations before them navigate through a housing bust, a recession, and face trillions of dollars in student loan debt. They listened as family members contemplated whether they’d have enough money to ever retire. And, as they began entering college and the workplace, they rolled with the proverbial economic punches and a litany of social challenges that only a pandemic could deliver. As a result, this generation just became more resilient.
Gen-Z is also unique when it comes to their financial sensibility. They’re saving earlier than generations before, achieving long-term money goals, putting money aside for unforeseen challenges, and becoming financially independent sooner. With eyes on the future, they’re more conscious about finding a job after college to avoid the burden of student loan debt, and they possess an almost innate desire to earn their keep. Instead of spending money on material things, the value of a shared experience is the commodity they’re seeking.
According to a 2022 survey conducted by Premium Financial Group, LLC, Zoomers are ambitious about saving more and spending less — 70% of respondents plan to put more money in a savings account or establish a 401k early, and 55% plan to spend less money next year. Several other studies reveal that many young workers have already prioritized saving money. Gen Zers are socking away approximately 14% of their income for the future, a higher share than Millennials (ages 26-42), Gen-X (ages 43-55), and Baby Boomers (56-75), who all hover around saving 10% annually. The study also claims that 35% of Zoomers are saving for retirement in their twenties, while another 10% are saving for retirement in their teens!
“Saving early and methodically so that people will have money well into their golden years is a good lesson for people of all ages,” says Brandy Johnson, Vice President and Branch Manager of Coastal Carolina National Bank in Myrtle Beach.” Developmentally, preschool, and kindergarten-age children are capable of understanding the concept of saving by age five or six, and children who began saving at an early age were more likely to accumulate more savings as young adults,” says Johnson.
Brandy Johnson has been in banking for 23 years and is an advocate for teaching children – of all ages – how to save. She promotes activities and educational programs offered through Coastal Carolina National Bank to students throughout Myrtle Beach. She also conducts financial literacy seminars at area businesses through CCNB@work – a program that helps educate young professionals on the importance of budgeting and saving, managing money, and establishing and using credit properly at no cost to businesses.
“As part of a generation who’s been raised on technology, it’s easy to assume this age group is accustomed to getting what they want immediately with minimal effort, but I found the opposite to be true, ” says Johnson. “When establishing a checking account, Gen-Z gravitates toward products that offer rewards and timesaving solutions – mainly because they’re working a part-time job while attending school and covering many school-related costs themselves. I was delighted to see how enthusiastic this tech-savvy generation was to set up automatic alerts and install budgeting tools to help indicate where their money was being spent – a key ingredient to establishing fiscal stability. Whereas previous generations seemed more interested in attending the best schools, Gen-Z seems more pragmatic and receptive to attending in-state schools to save on tuition costs. They seem proactively focused of their financial futures in a very productive way, and therefore, poised for a future of success. I find that very promising,” says Johnson.
Grand Strand Magazine, February 2023, Personal Finance Section