iCrowd Newswire
17 Mar 2023, 08:02 GMT+10
Gen Z generally consists of anyone born between 1997 and 2012. That means about half of Gen Z are adults and getting ready to take on their financial futures. Yet many face several challenges, such as rising college costs and student debt. Fortunately, Gen Z can reduce the impact of today's financial strains and set themselves up for a bright financial future through many of the same steps others have taken. With that in mind, this article will cover four tips to help Gen Z prepare for their financial future.
Budgets lay out your income and all your expenses. This helps you ensure you're living within your means, avoiding debt, and setting and working towards financial goals. A budget can also help you find and cut unnecessary spending, freeing up money for savings or for expenses you value more. For example, while creating your budget, you might uncover a forgotten Netflix subscription you don't use. Canceling this can save you money every month.
Life insurance protects your loved ones if you pass away unexpectedly. You might not have a family yet, but the benefit of getting a life insurance investment early in life is that premiums are more affordable while young. You can lock in lower premiums so that when you need the policy more down the line, you won't have to pay as much to cover them. In the meantime, you can name anyone else as your beneficiary, including parents, relatives, friends, and even charities. You can always update your beneficiaries later.
Here are two major types of life insurance Gen Z individuals can consider:
An emergency fund is money you can keep in a savings account for events like losing your job, getting in a major accident, or receiving an unexpected medical bill. The fund helps pay for the emergency and cover living expenses, helping you avoid debt and financial stress.
Many experts recommend saving three to six months of living expenses in an emergency fund. You may want to consider saving it in a high-yield savings account, which pays more interest than a regular savings account. This can help reduce the impact of inflation on your savings.
Retirement accounts offer tax advantages to help you set money aside for retirement. They let you invest that money into certain assets or investment funds to help your savings potentially grow faster.
If you have a full-time job, see if your employer has an employer-sponsored retirement account. These generally let you contribute with pretax money, meaning the IRS subtracts these contributions from your taxable income when calculating your taxes owed. These accounts may offer a matching bonus, which is free money for retirement from your employer. Try to contribute at least up to this bonus.
That said, employer retirement accounts may limit what you can invest in. Once you hit that matching bonus, consider opening an Individual Retirement Account, or IRA. There are two types:
These steps may seem simple, but even small actions taken early may pay off significantly down the line. Create a budget to set up a monthly plan for your spending and make it easier to work toward your financial goals. From there, consider getting a life insurance policy as early as possible to lock in lower premiums.
After that, build up an emergency fund, then open and contribute to a retirement account when your emergency fund is full. Following these tips will help Gen Z individuals set themselves up for financial success for the rest of their lives.
See Campaign: https://www.iquanti.com
Carolina d'Arbelles-Valle[email protected]Senior Digital PR Specialist201) 633-2125
Tags:PR-Wirein, CE, Go Media, IPS, Reportedtimes, ReleaseLive, Google News, Extended Distribution, iCN Internal Distribution, EnglishGet a daily dose of San Diego Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to San Diego Sun.
More InformationSAN FRANCISCO, California: A new round of extreme winter weather that hit California, also drifted into neighboring Southwest states, with ...
BENTON, Arkansas: Reuters reported that due to a reduction or elimination in evening and weekend shifts, Walmart will lay off ...
LOS ANGELES, California: Some 30,000 education workers in Los Angeles, backed by teachers, went on a three-day strike, canceling school ...
Philadelphia Phillies first baseman Rhys Hoskins will undergo ACL surgery on his left knee Thursday -- Opening Day across Major ...
The head of ANZ bank has said it is too early to forecast an end to the financial turmoilThe threats ...
Phoenix Suns star forward Kevin Durant is expected to return from a 10-game absence due to a sprained ankle for ...
DUBLIN, Ireland: US pharmaceutical giant Eli Lilly has said it will build a $1bn medicine manufacturing site in Limerick. Lily ...
WASHINGTON D.C.: The US National Transportation Safety Board has said that after an automated cockpit warning that switched off a ...
BEIJING, California: As the world's second-largest economy is still struggling to fully recover from the long-term effects of COVID-19, most ...
NEW YORK, New York - Bank shares were being bought up on Monday as U.S. industrial stocks kicked the week ...
WASHINGTON D.C.: To address summer airport congestion and low air traffic controller staffing levels, the Federal Aviation Administration (FAA) said ...
OTTAWA, Canada: After a meeting between Canadian Prime Minister Justin Trudeau and US President Joe Biden, Ottawa has pledged to ...