‘What’s the point’ of saving money

Gen Z, the generation born between 1997 and 2012, is facing a significant economic malaise, with nearly half of its adult members feeling that planning for the future is pointless. This sentiment has led to a freewheeling attitude towards summer spending, driven by feelings of financial despair and hopelessness. Courtney Alev, a consumer financial advocate at Credit Karma, highlighted the dangerous consequences of this “YOLO mindset,” warning that it could lead young adults to accumulate high-interest debt that they struggle to repay, ultimately delaying important milestones like moving out of their parents’ home or saving for retirement.

Despite these challenges, experts emphasize that the late teens and early 20s are an ideal time for young people to develop healthy financial habits. Starting to invest even a small amount now can lead to significant benefits through decades of compound interest. Alev stressed the long-term financial implications of not planning for the future and urged young people to be more conscious of their spending habits.

The disillusionment felt by Gen Z is understandable given the current economic environment. The labor market has been tough for new entrants and job seekers, with higher unemployment rates among Americans aged 22 to 27. Additionally, young adults are burdened with debt concerns, particularly student debt, with about 50% of bachelor’s degree recipients graduating with an average debt of $29,300. The recent restart of student debt collections by the federal government and the limited success of debt forgiveness efforts have added to the financial woes of young adults.

The rise of buy now, pay later lending has also contributed to the financial challenges faced by Gen Z. A Credit Karma survey revealed that 77% of Gen Z users feel encouraged to spend more than they can afford through BNPL services. These financial struggles, combined with political and financial uncertainties, have created a lack of optimism among young people looking to establish their financial stability.

To address this financial malaise, experts recommend that young adults rewire their financial mindset and view it as an opportunity to invest in their future. By starting early and investing consistently, even small amounts, young people can take advantage of compound growth over time. Mindful spending habits, such as implementing a waiting period before making non-essential purchases, can help prevent unnecessary spending. Prioritizing the payment of high-interest debt and taking advantage of employer matches in retirement accounts are also key strategies for financial success.

Overall, young adults are encouraged to take action, make a plan, and embrace opportunities to invest in their financial future. By changing their mindset and taking small steps towards financial stability, Gen Z can overcome the economic challenges they face and build a solid foundation for long-term financial success. The world is constantly changing and evolving, and with it, so are the ways in which we communicate and connect with one another. In today’s digital age, social media has become an integral part of our daily lives, allowing us to stay connected with friends and family, share our thoughts and experiences, and even build communities around common interests.

One of the most popular social media platforms in the world is Facebook, which was founded by Mark Zuckerberg in 2004. Since its inception, Facebook has grown exponentially, with over 2.7 billion monthly active users as of 2021. The platform allows users to create profiles, connect with friends, share photos and videos, and engage with content from brands and influencers.

While Facebook has faced its fair share of controversies over the years, including privacy concerns and the spread of misinformation, it remains a powerful tool for communication and connection. In recent years, Facebook has expanded its features to include live streaming, marketplace, and groups, further enhancing its utility for users.

One of the key features of Facebook is its algorithm, which determines the content that users see in their news feeds. The algorithm takes into account factors such as user engagement, relevance, and recency to deliver a personalized experience for each user. This has led to concerns about echo chambers and filter bubbles, where users are only exposed to content that aligns with their existing beliefs and preferences.

Despite these challenges, Facebook continues to be a dominant force in the social media landscape, with millions of users logging in daily to connect with friends, discover new content, and engage with brands. The platform has also become a key tool for businesses looking to reach new customers and build relationships with their target audience.

As social media continues to evolve, it will be interesting to see how platforms like Facebook adapt to changing user behaviors and preferences. With new technologies like virtual reality and augmented reality on the horizon, the future of social media is sure to be exciting and full of possibilities.