“Finances for Digital Natives” | Daily menu

Digital natives. You’ve probably already read a lot of the term referring to Generations Y and Z, also known as “Millennials” and “Centennials,” born between 1980 and 2010 (up or down years depending on who’s doing the categorization). You may be part of them.

However, these generations, which have in common that they were born or grew up during the digital age and the advent of the Internet, have been in the news for several years and are the result of theories of previous generations.

But now, with data, they can really learn how digital natives operate and manage their economy.

live for today

More than half of millennials and centenarians have something in common: They usually live from day to day, from paycheck to paycheck, without saving much money. And spend what they get. According to Deloitte’s “2023 Gen Z and Millennials Survey,” this is true for 52% of Gen Y, and 51% of Gen Z.

Naturally, a third of those surveyed are happy with the balance they have achieved between work and personal life. However, As many as 37% of Millennials and 46% of Centenarians have supplemented their main job with another job To cover their expenses.

Moreover, most are digital natives They like flexibilityMany have chosen remote work or a hybrid model that combines in-person work on some days and remote work on others.

But preferring part-time or remote jobs does not mean that these generations do not have entrepreneurial ambitions. For example, according to a report by the Workforce Institute, 57% of “Centennials” have career aspirations and expectations to move upward each year.

next to, 14% of them have started a business and 58% want to do soAccording to data from the consulting company Indeed. In addition to being entrepreneurs, they are savers: according to the Klarna report “Financial Management in the New Era,” 50% of them have some money in case of emergencies or unexpected events.

However, both Generation Y, like Generation Z, are very concerned about the future situation. According to the Deloitte report, 55% of the first and 56% of the second believe that it will become increasingly difficult to demand a salary increase. 50% and 49% believe that it is equally complicated for promotion.

In contrast, 51% of Millennials and 52% of Centenarians believe it will be difficult to find new jobs. Work is the most important, at 62% and 49%, respectively.

Digital economy

Regarding the way they run their economy, although both Millennials and Centenarians show great confidence in digital systems when it comes to managing themselves, each generation has its own peculiarities.

For example, young people from Generation Y care much more about the cost of living than young people from Generation Z: 42% compared to 35%, according to Deloitte. Ironically, their personal economic situation matters more to centenarians (44%) than to millennials (35%).

Of course, the effect of the general economic situation on their moods is similar: 27% of Y and 30% of Z think about it. The same happens with personal and family finances: 43% and 40% respectively feel a priority of responsibility for them.

Additionally, both generations of digital natives feel like they have a friend they end up spending more money for, according to a Credit Karma study conducted by Qualtric.

For example, 30% fear feeling left out by friends with more purchasing power if they can’t keep up with their pace of life, prompting them to spend more than they can truly afford.

In addition, both generations suffer from FOMO (fear of missing out), which is the fear of missing out on experiences, which, combined with the “temptations” of social networks, affects their spending habits.

In any case, what is clear is that the presence of these generations will increasingly constitute the majority in the business world, and they have already become the main consumers, which means that sooner rather than later the economy will enter a recession. .