Human Futures Magazine / Edition 2
EDITION 2
HUMAN FUTURES
THE MONEY ISSUE
Human Futures Magazine / Edition 2
Recap: the 5 myths we’ll BE bustiNG IN the upcoming weeks... Myth 1 They don’t know how to manage their money and don’t care to find out how to do it better
THIS WEEK
In this edition, we’ll dive into the truth using our deep qualitative research, quantitative data from the HeartbeatTM, and secondary sources. As a recap, here are the four myths we’ve dispelled about young Americans and how they relate to money.
Myth 2 They’re entitled and don’t understand the value of a dollar or the importance of hard work
Myth 3 They’re superficial, investing in fleeting material interests that have little meaning or long term value
Myth 4 They’re are brand victims, following and spending money on the latest fads blindly
Myth 5 They prioritize wokeness — if it’s green, and they’ll give their green As we explore young Americans and their relationships with money we see the urgency in debunking myths about this generation. Big brands, media, and thinkers have seemingly misunderstood this cohort and its nuances. The goal of this work is for us all to connect with this cohort more sensitively, coherently and honestly — by listening to their voices and understanding their wants, needs, drives, and desires.
NOTE: Blanket statements about a generation can be risky and ignore gray areas. We’re talking about “young Americans” here for example, but replace this label with any other one (i.e. a geographic, generational, racial etc. and any trends discussed can quickly become damaging stereotypes.) While we aim to pull back the curtain on audiences, we seek to do so with depth and nuance that leads to empathy.
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Human Futures Magazine / Edition 2
MYT H 1 IN TRUTH...
MYTH 1 DEBUNKED Young Americans are indeed conscious of money and finance but think, feel, and behave towards them in slightly unique ways. From the outside, this may look fickle and disengaged, but in fact, it’s quite the contrary. Behind the scenes, young Americans prioritorize “essentials” first Happiness is something they invest in ‘in the now’ and ‘for the future’ — they approach treating themselves consciously, not lacking responsibility They engage with financial information in ways comfortable and digestible to them, ignoring the more traditional media Young Americans deal with tough times with humor and satire which gets misconstrued as lacking care There’s a misconception that Gen Z and Millennials aren’t financially prepared. In fact, they overindex on many financial actions compared to older generations.
In the past 6 months Gen Z and Millennials
50% 38%
Gen X and up
43%
12% 15%
28%
33%
29%
32%
25%
24% 19%
Actively set financial plans for the future
Actively sought information about personal finance and money management
Invested money in stocks, bonds, or other traditional banking / financial
Actively set and managed a financial budget regularly (using spreadsheets or apps)
5%
Invested in cryptocurrency
Basesize: 408 3
Human Futures Magazine / Edition 2
Over half of Gen Z and Millennials save regularly i.e. every month
5% Regularly Every month
38%
57%
Occasionally Periodically throughout the year Rarely When there is unexpected or extra money
Gen Z and Millennials
92%
Believe it’s important to manage their finances regularly
70%
Are confident and have the knowledge and tools to manage their money effectively
Basesize: 408
LET’S EXPLORE HOW! 4
Human Futures Magazine / Edition 2
THE TRUTHS Young Americans prioritize essentials over frivolity, but in their own unique way Meeting Basic Needs •
Young Americans prioritize essential expenses like rent, groceries, and transportation and are conscientious about covering these costs
•
The basics don’t come cheap though. A significant portion of their income goes towards covering these fundamental needs
•
So while their savings in the bank might be low, it’s not because of overindulgence; it's a result of allocating resources to meet basic necessities
The cost of essentials has grown
19.8%
from Q4 2019 to Q4 2022*
Superficially lazy, but strategically savvy •
When it comes to shopping and spending, they actively seek convenience to maximize value for their money
•
Online shopping allows them to – yes- not leave the couch, but moreso to efficiently compare prices across platforms, research alternatives, and make informed decisions
•
Despite occasional impulse buying, they prioritize being savvy consumers, diligently researching before making essential purchases
“I go on Safari, look up the item, see the retail price is, see what people are selling it for on eBay, then what they've sold for on eBay. I price something after a lot more research.” - Dylan
Click ch to Wat
Optimizing and elevating the essentials
•
They choose brands and stores that uplift, inspire, and provide a sense of ease, often mentioning places like Target, Wegmans, Publix, and Chewy as go-to destinations that make ‘the basics’ feel more fun
* https://www.pymnts.com/travel-payments/2023/united-airlines-considers-personalized-ads-for-travelers
on TikTok
They do love a bit of extra indulgence, which they often feel in the form of a visually appealing store and top-notch organization
er snac king
•
te sy of @sist
Young Americans prioritize affordable essentials but are willing to pay a bit more for a pleasurable shopping experience, even for mundane purchases
Imag es cour
•
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Human Futures Magazine / Edition 2
Happiness requires investing in it today as well as in the future Treat yourself, now or never •
The volatility of the US economy and global crises mean they’ve learned to invest in the moment because future finances are uncertain
•
They often find it challenging to envision a successful long-term financial future as it doesn’t feel as accessible as it did for past generations
•
This perspective explains why many are willing to invest in small daily pleasures, like spending on $7 coffee, to bring them joy*
k C l i c tc h Wa to
Mindful saving with modern resources
Image s cou rte sy
•
While they may have proportionally less savings compared to previous generations due to essential expenses, they are using financial planning tools like 401(k)s and IRAs
•
With access to various apps, programs, and financial advice on platforms like TikTok, they actively seek to make the most of today’s tools
of @a nnalovesc offee on TikTok
“Around 21, I thought ’what about my future’. I started investing a bit and saving money for a house. But then I realized ‘Man, I'm not even having fun with my money’. So I think it’s trial and error.” - Luis
Gen Z and Millennials place a lot of importance on wellbeing 96%
I believe mental well-being is important in overall health I have personally experienced challenges to my well-being I'm likely to seek information or resources to improve my mental well-being in the future
61%
Only 1/2 of Gen X and up would do the same
78%
Unlike previous generations 54% of Gen Z are more likely to prioritize spending on therapy than shopping in a store or online** Basesize: 318 * https://www.newsweek.com/millennials-spend-7-coffee-day-joy-study-money-habits-1848587 ** https://www.creditkarma.com/about/commentary/emotional-spending-is-out-of-control-for-more-than-one-third-of-gen-z-study-finds
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Human Futures Magazine / Edition 2
The best investment is yourself “Getting the medication you need, going to therapy, etc. can be expensive even with insurance. It doesn’t feel the same as a doctor's or a dental visit for some reason. It feels like a luxury. I've been working on investing more in my mental health, but it's a little bit hard.” - Amanda
•
Therapy and mental health support are increasingly seen as valuable investments even if some can’t afford it
•
Despite potential financial barriers, they view therapy as a valuable tool for improving their well-being and see the cost as worth it, even if it makes a dent in their wallet
Gen Z and Millennials save more of their personal income than Gen X and up, but they also ensure they strike a balance between saving and treating themselves 3%
12%
17%
22%
14%
Education/Personal development Non essential e.g. going out, shopping, vacations
21%
Savings
66%
Living essentials
45%
Gen Z and Millennials
Gen X and up
48%
Gen Z + Millennials
vs.
19% Gen X and up
Believe it’s more important to have fun than care too much about money Basesize: 408
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Human Futures Magazine / Edition 2
They engage with financial information that meets them where they’re at Unconventional learning •
Young Americans have unique challenges when it comes to learning financial independence, often seeking financial wisdom amidst conflicting advice
•
They trust their peers and are quick to adopt new fintech and upstarts to manage their money effectively
•
Their methods may appear unconventional but reflect their adaptability in a rapidly changing financial landscape
Accessibility is king •
While past generations may have spent hours studying or paid up to outsource their investments to an advisor, this generation is opting for somewhere in the middle
•
This generation places a lot of trust in digital tools to not only make choices for them but also support their learning
•
Apps like Robinhood, Acorns, and Stash are popular for easy, automated investing that helps them still feel in control
Gen Z (37%) and Millennials (27%) have used AI to make banking, investments, or other financial decisions*
“I used Mint to track my finances; I set alerts for certain purchases, made sure I was saving a certain amount, and tracked my recurring payments. I used it every other day for 4 months, but then Ididn’t need the app. I got used to being able to do those calculations in my head for the long run.” - Jarele
Engaging at their pace in their space •
When it comes to learning about budgeting and investing, they strongly prefer platforms they’re already using, like TikTok, YouTube, and Spotify
•
It’s important that they learn budgeting and investing tips in a way, and from someone that’s engaging and relatable
“I consume so much financial content on TikTok made by girls and relatable people. They give me info so I don’t have to talk to a financial advisor. They talk like real people with terms people in their 20s use. It makes me much more interested in what they say.” - Claire *www.massmutual.com/about-us/news-and-press-releases/press-releases/2023/06/massmutual-consumer-spending-and-saving-index-summer-fun-shaded-by-financial
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Human Futures Magazine / Edition 2
46%
of Gen Z and Millennials seek out financial information on social media compared with just 6% for Gen X and up
Financial institutions are quickly becoming overlooked in favor of more relevant and convenient sources Ranking of most popular platforms to seek out financial information
Rank
Gen Z and Millennials
Gen X and up
1
Online search tools e.g. Google, Yahoo
Financial institution online
2
Financial institution online
Financial institution in person
3
Social media apps e.g. TikTok, Instagram
Online search tools e.g. Google, Yahoo
For 24% of Gen Z, social media is the first place they go to for financial information
Basesize: 408
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Human Futures Magazine / Edition 2
Their laissez faire financial tone isn’t due to a lack of care, it’s coping Reactionary gripes or acts of resilience •
The internet is rife with jokes about Gen Z being ‘poor’ and ‘broke’ that have some thinking they’ve given up on financial success
•
Every generation uses humor to handle their own challenges, with Gen Z doing it through meme culture and irony that can seem particularly nihilistic
•
Under the surface, this can be seen as their way of connecting with peers by sharing relatable challenges, and acts as a positive defense against harsh financial realities
Real talk: Breaking the stigma •
While the self-deprecating humor may be cringe to some, it’s an opportunity for brands to tune in
•
Embracing this humorous tone can spark conversations about financial health and invite transparent conversations that help brands understand their young audiences
Images courtesy of @leek.w
Images cour tesy
This self-deprecation is considered an adaptive coping strategy in psychology, reducing perceived stress rather than reflecting a lack of care
ss on TikTok
•
On a deeper level, this cohort’s self-deprecating nature helps them navigate the double bind of societal pressure to achieve financial security amidst constant damns to shop and consume
right on TikTok
•
of @eemilymorale
Self deprecation as the antidote
C li c k to Wat ch
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Human Futures Magazine / Edition 2
A NEW E IV T C E P S R PE Young Americans do care and engage with money but they do it in different ways... ways that are relevant to them and the times they live in. This is not ignorance - it’s relevance. So, what does this mean for brands providing for young Americans? ark ac tion... Here are some questions to sp How can we inject empathy, and thus respect, into the ways we talk about and play a role in young Americans’ approaches to life and money? How can brands not just listen and teach, but lean into the ways that young Americans engage with the world and their finances in order to offer them even more empowering tools? What are ways that brands offering products, essential or not, in young Americans lives still provide something deeply valuable to them beyond purchase?
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Human Futures Magazine / Edition 2
g n i m o C E M I T N EXT H T Y M 2
Young Americans are taking conscious approaches to earning. They seek a fulfilling workplace that allows them time, space, and enough money to do other things — from spending time with friends to earning more money through a passion project. Where it looks like they’re being lazy, their sources of fulfillment are more diversified, and work and money take up a smaller slice of the pie than before.
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Human Futures Magazine / Edition 1
FROM Discover the Power of Human Values for your brand through The HeartbeatTM the Quarterly Global Values Survey The HeartbeatTM is an inspiring, on-going and ground breaking global study that is decoding the energies of our times and the Human Values that are shaping our world so that your brands, communications, products and services can be their most relevant. It may well change your world view.
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