Top wealth goals for Gen Z and Millennials in 2024
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The Millennial and Gen Z generations are putting financial goals at the top of their list of 2024 resolutions, A recent American Express survey revealed,
The survey surveyed more than 1,800 people born between 1981 and 2012, finding that 57% of respondents named personal finance goals as their top personal goal for the next year, followed by wellness goals (50%) and mental health. The targets were (48%). ,
“Financial wellness is a big part of your overall mental health,” Sue Gardiner, certified financial planner and owner of South County Wealth Planning, tells CNBC Make It. “Being in a strong financial position doesn’t mean you have everything to support your lifestyle right now, it just means you understand how you’re spending your money and understand your personal cash flow. Are.”
Millennials and Gen Zers are also setting specific goals for what they want to do with their money in the new year. Here are the top three financial goals for the two generations and how to get started on achieving them.
1. Increase savings
The most popular financial goal for Millennials and Gen Zers in 2024 is to increase their savings, with nearly 60% of respondents putting it at the top of their resolution list.
To get started, Gardiner recommends automating your savings by automatically transferring a certain amount of money to your savings account periodically.
The type of account you choose can also make a difference. “The biggest recommendation I hear from all advisors, and the one I give, is Start with a high-yield savings account and learn how it works,” says Gardiner. “Right now, with the interest rates being paid…a high-yield savings account is a really great way to grow those savings. “Can be a great, safe opportunity.”
2. Paying off debt
More than 40% of Millennial and Gen Z respondents cited settling their debts as a top financial goal for the next year. This is not surprising, given that paying off high-interest loans The troubles are increasing ever since the Federal Reserve has started raising rates in 2022.
Depending on your circumstances, there are a variety of strategies for paying off debt. One option is to put your loan on a balance transfer credit card. These cards typically offer introductory terms of up to 21 months with a 0% interest rate, allowing users to repay their loan without incurring additional interest.
“If they have a good credit score and they’re paying off debt, sometimes rolling that debt into a 0% interest balance transfer credit card can be a great way for people to start moving all those payments toward the principal amount.” What they have to offer,” says Gardiner.
After that, Gardiner recommends creating a manageable pay-down schedule. And when considering using the card to rollover a balance, keep in mind the fee on the initial balance transfer, as well as how long the 0% interest rate lasts, she adds.
Other common ways to start tackling debt include the snowball method, which involves focusing on paying off smaller balances first, and the avalanche method, which focuses on paying off the debt with the highest interest rate first. Both involve making minimum payments on all your debts.
3. Stick to budget
Budgeting is seen as the cornerstone of any financial planning, and Millennial and Gen Z respondents seem to agree – 41% said sticking to a budget will be an important money goal for them in 2024.
Whether you turn to budgeting apps, spreadsheets, or even pen and paper, sticking to a budget depends on whether your plan is manageable.
“The budget should be understandable to you and not so complicated that you don’t waste time checking it,” says Gardiner. “I suggest that when you first create a budget, check it weekly.”
She says regularly checking your budget will help you become comfortable with your spending habits and let you know when you’re overspending on expenses like groceries.
“You’ll start to train yourself to make decisions and create habits so you don’t have to check that budget as often, and once you’ve got all those things in place, you can move to biweekly or bimonthly. ” she adds.
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