Gen Z Chooses Financial Security Over Luxury: Key Findings from Recent Study

Gen Z is increasingly demonstrating a strong commitment to financial planning, emphasizing long-term financial security over short-term indulgences. A recent study conducted by Charles Russell Speechlys, an international law firm, surveyed 4,000 individuals and revealed insightful trends in the financial behaviors of this generation.

Financial Priorities of Gen Z

The study highlights that more than two in five (43%) Gen Z adults are inclined to utilize financial support, such as inheritance or monetary gifts, to secure their future. Here are some key findings:

• 33% plan to buy property outright.
• 32% intend to use financial support as a home deposit.
• Only 22% would spend financial assistance on a major one-off purchase.
• 20% would allocate it for travel expenses.
• Just 17% would share with family or friends.

Open Conversations About Inheritance

In addition to their focus on financial stability, Gen Z is more open to discussing wealth and inheritance issues. The findings indicate that:

• 81% of Gen Z adults have engaged in discussions about inheritance or estate planning, compared to 68% of older generations.
• 54% of Gen Z respondents plan to leave their inheritance to their children, similar to 53% of older generations.

Sally Ashford, a partner at Charles Russell Speechlys, emphasized the generational shift in financial attitudes. She stated, “Gen Z has grown up in a challenging financial environment, and the impact on their attitudes towards wealth is evident.” She encourages early discussions about financial planning and inheritance to prepare for unexpected events.

Investment Mindset of Gen Z

Gen Z’s cautious financial approach also extends to their investment strategies. Notably:

• 23% seek out financial advisors for investment advice.
• Only 15% rely on social media for investment information.
• A mere 6% do not seek financial advice, significantly lower than the 26% of Millennials.

Furthermore, Gen Z values sustainable investments while still prioritizing financial returns. Here’s a breakdown of their investment priorities:

• 35% want their investments to yield a positive social impact.
• Only 8% exclusively prioritize financial returns, compared to 31% among Millennials.

Charitable Giving Trends

When it comes to charitable giving, the study reveals that:

• 71% of Gen Z adults believe donating to charity is important.
• However, 54% prefer saving for their future over contributing to charitable causes.
• Only 38% include donations in their monthly budgets.

William Marriott, another partner at Charles Russell Speechlys, remarked, “Gen Z is financially savvy and equipped with more resources and knowledge than previous generations. They understand the importance of financial planning early on.” He noted that this generation is more focused on saving rather than spending on unnecessary luxuries.

In conclusion, Gen Z’s approach to financial planning reflects a significant shift in priorities and attitudes towards wealth management. For more insights on financial literacy and planning, explore our resources on financial literacy.