Why 85% Of Gen Z Is Financially SCREWED

what's up everybody Nate here and the entirety of gen Z is completely financially screwed now being a millennial I know a thing or two about being financially screwed something about the tech bubble bursting in 2001 and two Global recessions I'll do that to you but unfortunately it looks like gen Z might end up being even more financially screwed than the Millennials and any other generation in American history so today I want to talk about why gen Z is financially screwed and how they could potentially unscrew themselves going into 2023. so the first thing I want to go over is dead now Generation Z is in a unique position in that their debt is going to be very much different than what Millennials were taking on recent studies actually show that many members of gen Z are kind of foregoing the college experience and they're going directly into careers or they're taking online classes or starting their own business furthermore Generation Z is investing a whole lot earlier than the Millennials and gen xers so that means certain individuals in gen Z could ultimately grow their wealth faster than a lot of Millennials and be a whole lot better off in life simply because of the education that is surrounding Generation Z right now however that is not really the case for the entire generation as gen Z is racking up dead in an entirely different way gen Z is actually racking up debt in consumer items not student loans now there's been some recent reports on this that have shown that gen Z is a whole lot more likely to go after your buy now pay later sites and basically what this means is that you can buy anything that you want to at any price and essentially pay for it later I remember a few years ago I went shopping for a brand new pair of Ray-Bans and when I went on the website I literally got a buy now pay later service I could essentially finance my 150 dollar pair of sunglasses it only makes smaller payments every so often lately though I've seen this stretch to everything from grocery bills to literally going to the movies you can buy anything in the world right now through financing and that means that there is nothing for Gen Z that they can't have I want to kind of address this from the business side this is a great business product for a lot of companies because they can increase products through credit they can essentially sell all of their items and get paid by the buy now pay later companies immediately and that means the profits are going to grow and businesses can eventually grow too and they can show that people are really really interested in their products the only thing that might be stopping them is that payment so for the Gen Z side this is not a good sign for their financial future this holiday season 85 percent of genziers are expected to use the buy now pay later Services instead of buying something up front and let me talk a little bit about why this is so bad so buying something initially that you can't afford well if it's a small enough payment it's not necessarily going to hurt your finances but the issues come in when you start kind of snowballing all of this debt together sure you might be financing something and making a small payment from maybe five to Fifteen dollars a month but if you multiply that by 20 different things now you're spending a ton of money every single month for very small consumer items if it was really small consumer items well then that wouldn't be such a big deal and I think gen Z is having a really hard time financially right now because they're growing up during a really really volatile economic period we had the pandemic and we have the highest inflation of our entire generation so this is really Rocky times for Gen Z and it makes a lot of sense that they would go towards these buy now pay later platforms but what a lot of researchers are finding is Gen Z is actually spending their money on luxury items they're actually using these buy now pay later items for luxury clothing brands and watches and jewelry no I want to be the first to tell you that there is absolutely nothing wrong with buying these things I want you to have really nice things I want gen Z to be the most fashionable generation of our entire country's history however I want you to be able to afford these things I don't want you to have to finance your sunglasses or your Gucci sweaters because you don't have the money to buy it up front these are all things that you absolutely can have but you might have to save for them and you might have to delay your gratification and buy them later in order to get them because think about it this way if you're financing a whole lot of different things then sure you have a lot and that is American culture personified this is not just a gen Z problem we have had this issue in the United States for a very long time now we are a consumer culture which means we have to buy the best and we have to look the best at every moment and that can often put people in a lot of debt people will go out and get really fancy luxury cars and really fancy houses and then they'll end up not being able to spend a dime later on in their life because they bought this really nice house so they could look rich but in reality they were dirt poor Banks and real estate companies and all of these different businesses will absolutely absolutely help you get the things that you want in life they will let you finance anything and they will let you buy something even if you don't have the money for it but that doesn't mean that you necessarily have to go out and get that thing just because you can what this ultimately does is create a debt problem in the entire society and that is what I am the most worried about gen Z is going to have all of these things but paying off all of these small minor things today are going to prevent them from Building Wealth in the future I mean if you're spending a couple hundred dollars a month on all of your consumer goods and services well then that helps you today and it helps you look rich today but the problem is if you run into any type of bad financial circumstances in the future and you're no longer able to pay for all of those things well that hurts the companies that allowed you to take on this loan and you now have to give all of that back or if you're going to be charged for it and that means even more debt on Generation Z and furthermore if you're spending hundreds of dollars every single month you're not going to be be able to gain any future money because all of that debt is holding you back when you look at money in terms of spending there's a couple different ways to look at it you can look at it as right now you're spending money to get something right now or you're spending money to have something in the future I think that life is a balance of both you have to ask yourself when you're buying something right now well do I actually even need this or do I just want it and what is it going to be valued at in the future having nice things is great but not at the expense of holding back your financial journey and jensy at some point has to ask itself well how badly do I want all of these consumer goods and services because you can't have both you can't be spending hundreds if not thousands of dollars on junk every single month by using buy now pay later and then also want to be financially wealthy you just can't have both the only way that's going to work is if the amount that you're putting in you're also getting out of it and that involves investing but the other thing that I think is really keeping down gen Z right now and that could drastically affect their chances of Building Wealth and financial future is rent prices all throughout the United States now we're seeing a big wave of gen Z actually staying home a whole lot longer than the millennial generation and Gen X they are living from home which is part of the reason why they're able to spend so much on these luxury items and they're able to use by now pay later but they're actually staying home not because they want to because rent is so expensive all throughout the United States we have seen the housing market explode over the last couple of years and gen Z right now is just entering their adult years where they would start moving out and potentially even getting a house the issue is when you're just starting out or if you're going to college you don't have a career just yet which means you're not making the big bucks and if you're not making the big bucks you're not going to be able to get a home and you're not going to be able to pay the crazy rent prices that are being presented right now because so many people wanted houses and because so many Millennials were were in a lucrative financial position in 2020 and in 2021 that meant that they were going out and getting houses and if they couldn't afford a house they were upgrading into a luxury apartment and that kind of squeezed the entire market and it squeezed out millions of gen Z so they are staying home and Home Ownership is a way that many generations actually build wealth in the future it's not the best way to do it but many generations have made it work in the past gen Z might not be able to afford that opportunity unless that wealth eventually trickles down to them in the future and the third and final thing that I want to bring up here is inflation now I talked about inflation just a little while ago but inflation is the worst that it's been in a very very long time and that is financially keeping down gen Z right now denzy is in their late teens and early 20s and these are some of the best times to start making a whole lot of money and then taking that money and investing it or putting it aside to save for a house or other things that you want in life the problem is inflation is eating into a lot of those paychecks and the wages that gen Z are making well they are not keeping up with inflation which means gen Z is spending way more than they have to on all of the same goods and services meaning they're not saving money and they're not investing money that can be a big problem for businesses and our economy going forward because it means there's a good chance that gen z may continue to live paycheck to paycheck for the extended future if they're living paycheck to paycheck then they're not going to be able to put money into entertainment Industries or travel Industries they're only going to be buying the things that they absolutely need in life or they're going to be going into debt for other things that they actually want that could all come crashing down if we see recessions in the future and if you take anything away from this video that is the one thing that you should take away things change in the future and nobody knows what's gonna happen next our entire economy Works in Cycles so we have booms and bus after the 2008 financial crash well that was a pretty bad period in American history for a few years then we had one of the biggest and fastest expansions in American history obviously there was really low interest rates we had a ton of tech startups join the economy but the bottom line is we had all ton of access all at once and then everything kind of fell in 2020. lots of jobs were created between say 2010 and 2020 and we're seeing potentially a recession around the corner in 2023 once again I don't know if we're going to see a recession right now what I do know is that companies are going to be a lot more restricted the FED is probably going to continue to raise its interest rates and there's going to be a whole lot less consumer spending that's going to have a big impact on businesses which means a lot of the careers that gen Z is in right now well those jobs could end up disappearing meaning all of that wealth and all of that money building potential also is going to disappear being prepared today is the number one thing that you can do with your money having a plan for saving having a plan for money management and investing is going to protect you against a future recession because right now you might be able to survive however if gen Z stretches itself too thin and it has too much debt and the entire generation is living paycheck to paycheck well then that could mean an economic collapse for us in the future recessions mean job loss and recessions mean a lot of scarcity in our economy and I don't want to see an entire generation fall all at once because of their spending habits of today so then the question is how exactly can gen Z unscrew itself and I think that the answer is multifaceted but the number one thing that I think they can do is educate themselves as much as possible so especially when it comes to finances learn how to save your money effectively learn how to spend your money efficiently and learn how to invest and grow your wealth these are all things that are going to help you out for the entirety of of your life and it's going to keep you out of the next recession and create an opportunity for you in the future where you can build even more wealth investing beats inflation one of the number one problems that gen Z is having right now and it means more money and more money is more money that gen Z can spend as long as they're thoughtful about their purchases and building up that wealth and investing allows you to have a bigger impact on the world so a lot of the social changes that gen Z wants to see they can make those things happen with more money that will help them to create a world that they want to see in the future a world that they're going to have to live in and I want them to actually live in that world and not suffer from it like I said it all comes down to preparation and gen Z needs to be prepared today for whatever comes in the future but that is it for today's business and financial news breakdown thank you so much for watching if you want to stay up to date with all the top business and financial news from around the country our team puts the other a free daily newsletter and you can subscribe to it by clicking the link in this corner right here here and if you want to stay up to date with me he had everything else happening in the business and financial world I'm putting out updates seven days a week over here on this channel and I've actually got another one ready for you right here so be sure to check that out before you go that is it for me everybody be kind out there and I'll see you all in the next one

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