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Younger generations have long been maligned for spending money on silly things - like the viral TikTok "pink sauce" and pushing their retirement planning to the back burner - but older generations aren't exempt from making poor financial decisions themselves.
A recent survey by financial services company Bread Financial revealed that while Gen X and baby boomers spend less overall on "embarrassing" purchases, some admit to buying food that ends up rotting in the fridge (26% and 22%, respectively) and gambling on sports (17% and 9%, respectively), per additional data provided to Moneywise.
Gen X in particular is having trouble with their money. More than a quarter admitted to spending nothing on improving their financial health and having no retirement plan or savings. They're also the generation most likely to feel poorly about the state of their finances.
Zoomers, on the other hand, are making several smart money moves that their older counterparts could take note of. Here are 3 useful tips being employed by Gen Z.
So you've made a trip to Costco and arrived home with more slices of meat and fresh produce than you know what to do with. Even if you got a good deal, how can you ensure you haven't purchased too much food and won't end up wasting any?
As usual, it starts with having a budget, and this simple technique popular among Gen Z can make it easy to not overspend on things like groceries.
It's called "cash stuffing" and it's a trend that has spread on TikTok and YouTube.
Just take your paycheck in cash and divide it into envelopes based on your budget, including expenses and savings. You could use the 50/30/20 rule and split your income that way - 50% for your needs, 30% for your wants and 20% for your financial goals.
So if you have $100 set aside for groceries each week, take that amount out of your "groceries" envelope and bring it with you to the store. The idea is this is the maximum amount of money you have to spend on food. If your bill ends up above $100, you will be forced to put some items back, which can reduce the amount of food going to waste in your fridge. This not only keeps your spending in check, but also encourages you to be more frugal while shopping.
Read more: This janitor in Vermont built an $8M fortune without anyone around him knowing. Here are the 2 simple techniques that made Ronald Read rich - and can do the same for you
Another tactic for cutting back on your spending is to shop at thrift stores and snag any great deals on clothing, furniture, cookware, dinnerware, and all kinds of accessories.
Many young Americans are becoming more conscious about the environmental impact of their shopping habits and are opting for sustainable and affordable alternatives.
Just don't go overboard with all the discounts and buy more than what you need - it's important to shop with intention.
You can put any cash saved toward your emergency fund or retirement savings.
Gen Z is hustling to make up for the narrowing gap between the current cost of living and their wages, whether that includes taking up a side gig or taking more risks with the stock market.
Consider renting out your garage or a spare room in your home through Airbnb. Or take a look at what's lying around in your closet and sell any gently used clothes and electronics on reselling platforms like Poshmark and eBay.
When it comes to investing for your retirement, it's probably best not to place your odds at the races - which often comes with more risk than reward.
Consider more "shock-proof" assets like real estate or gold instead.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.