7 New Things Gen Z Needs To Save Money for That Didn’t Exist for Boomers
It’s fair to say that every generation has its advantages and its challenges. Today’s Gen Z faces financial hurdles that were unimaginable to the Boomer generation.
Technology, for one, is a big difference.
Below, experts break down some critical expenses that are burdensome for Gen Zers today.
Read More: 3 Things You Must Do When Your Savings Reach $50,000
For You: 5 Unnecessary Bills You Should Stop Paying in 2024
Earning passive income doesn't need to be difficult. You can start this week.
Digital Subscriptions
Digital subscriptions represent a significant monthly expense for Gen Z, according to Abid Salahi, finance expert and cofounder of FinlyWealth.
Between streaming services ($50 to $100 monthly), cloud storage ($10 to $50 monthly) and various app subscriptions ($30 to 100 monthly), he said young people often spend $1,000 to $2,000 annually to participate in digital life.
“For Boomers, entertainment costs were mainly limited to a cable TV subscription and maybe a newspaper.”
Try This: 5 ‘Necessities’ Frugal People Don’t Buy, According to Frugal Living Expert Austin Williams
Professional Development
Professional development has become another constant expense.
“In my experience advising young clients, many spend $2,000 to $5,000 annually on online courses, certifications and coding boot camps to stay competitive in the job market,” Salahi said.
Boomers, he explained, typically finish their education and enter a career path for life.
“One of my Gen Z clients recently spent $4,500 on a UX design course to transition careers — something almost unheard of in the Boomer era.”
Darian Shimy, founder and CEO of Future Fund, agreed that members of Generation Z have to make regular investments in certifications, professional development and modern skills given the fast speed of change in the labor market.
“With less of a need for constant skill improvement, many Baby Boomer generation members sought professions more steady and long-term,” he said.
Shimy also noted that resilience in the face of economic downturns, industry upheavals or job transfers depends on one’s capacity for ongoing learning and change adaptation.
“Those who welcome lifetime learning are more suited to negotiate uncertainty and grab fresh chances as they present themselves,” he explained. “Learning and picking up fresh abilities can help one develop personally, stay intellectually active and generally be in a good mood.”
Shimy added that it increases confidence, cognitive involvement and self-fulfillment.
Personal Branding and Social Media Presence
Personal branding and social media presence are also essential career investments.
According to Salahi, young professionals often need high-quality equipment for content creation ($1,000 to $3,000 for cameras, lighting, etcetera), website hosting ($100 to $500 annually) and sometimes even social media management tools ($300 to $1,200 annually).
“A recent client invested $2,800 in video equipment to build her professional presence–an expense that would have seemed absurd to someone from the Boomer generation.”
Smart Phone Expenses
Salahi pointed to smartphone-related expenses as unavoidable for Gen Z.
Beyond the device itself ($800 to $1,200 every 2 to 3 years), there’s the monthly plan ($50 to $100), insurance ($10 to $15 monthly) and frequent app purchases.
“The total annual cost often exceeds $2,000. For Boomers, a landline phone was a one-time installation with minimal monthly fees.”
New Health and Wellness Expenses
Health and wellness have equally transformed into significant expenses.
While Boomers might have had a gym membership, Salahi noted that Gen Z often pay for specialized fitness classes ($100 to $300 monthly), mental health apps ($10 to $50 monthly) and wellness supplements ($50 to $100 monthly).
“One of my younger clients budgets $4,800 annually for these wellness expenses — a concept that would baffle many Boomers.”
Side Hustle Startup Costs
Side hustle startup costs are another unique expense. Many Gen Z individuals need to invest in equipment, software or inventory to start side gigs to supplement their income.
“I recently advised a client who spent $3,500 setting up a podcast studio for his side business — an expense category that didn’t exist for Boomers,” Salahi said.
Crushing Student Loan Payments
Student loan payments have become a crushing burden, according to Salahi.
While Boomers might have had some college debt, he said the scale has changed dramatically.
“Many of my Gen Z clients face monthly payments of $500 to $1,000, often totaling over $100,000 in debt. One client pays $876 monthly on her loans, which will continue for 20 years,” Salahi added.
More From GOBankingRates
6 Subtly Genius Moves All Wealthy People Make With Their Money
5 Low-Risk Accounts Financially Savvy People Trust for Reliable Returns (And How You Can Use Them)
This Free Money Move Could Nearly Double Your Lifetime Investment Returns
This article originally appeared on GOBankingRates.com: 7 New Things Gen Z Needs To Save Money for That Didn’t Exist for Boomers