Yahoo Finance Suze Orman Has This Bone To Pick With Gen Z About Their Money Values
All generations face struggles, and Gen Z is no exception. This cohort is largely saddled with student loan debt, navigating a mercurial job market and making less money than their parents did when they started out. Most of the financial challenges pinning Gen Zers down are well beyond their control. But is there something more or different these folks could be doing to build financial freedom? Ask finance guru Suze Orman and she’d likely say yes.
Her main bone to pick with Gen Z? That they prioritize fashion over building wealth.
“They don’t understand the value of compounding and that the key to their financial independence is their age,” Orman told The Wall Street Journal in an interview. “[Young people] don’t get that. They would rather dress cool, go on their TikToks.”
Is Orman right? Here’s what fellow financial experts think.
Sponsored: Credit card debt keeping you up at night? Find out if you can reduce your debt with these 3 steps
Actually, Gen Zers Are Early Investors
Gen Zers may not be building up wealth at the (compound) rate Orman would like, but they are investing.
“Surveys and studies have shown that Gen Z is already investing earlier than generations before them,” said Alex Blackwood, CEO and co-founder at Mogul Club. “Even for those without the funds to invest significantly, two-thirds believe in the opportunity of the stock market to build wealth.”
Gen Z Has a Strong Appetite for Financial Literacy
Unfortunately, personal finance isn’t always taught in school. Blackwood perceives Gen Zers as making up for the knowledge gap on their own time.
“You can’t deny there is a strong appetite for education and financial literacy,” Blackwood said. “Whether it’s comparing stock portfolios over brunch or dissecting the latest financial trends at the bar, the art of money talk has become a skill set as valuable as any diversified portfolio, transforming financial literacy into a powerful form of social capital in today’s ongoing era of shared success.”
Check Out: Top Money Moves for Boomers, Gen X, Millennials and Gen Z
Gen Zers Make Money Off TikTok
Regardless of whether you think Orman is right or wrong, there’s no disagreeing over the fact that TikTok holds significant value for Gen Z — and not just for spending, but also for earning. Some Gen Zers are striking gold on the social media platform as influencers.
“Depending on the agreements arranged with brands and influencers, the pay can range from $100 a post to a few thousand dollars depending on various factors such as platform and number of followers,” said Mawuli Vodi, speaker, educator and author at Financially Present.
Who’s to say they aren’t using this money to invest?
“This money can more than satisfy the monthly investment contribution Orman is referring to, even if it happens to be on TikTok,” Vodi said.
Plus, on TikTok, there’s potentially capitalistic value in dressing cool.
“Dressing cool while on TikTok can actually help young investors make money if they are influencers or brand ambassadors,” Vodi said. “The social media landscape has changed to a point where gamers can stream live and earn money simply by playing video games and being themselves. Young people can scroll, create content and make money as well.”
There’s Economic Power in TikTok
Vodi asserts that Orman’s opinion is not completely wrong — it’s just flawed in that it minimizes the economic power of TikTok.
“The current influencer and content creator climate allows young people to monetize their efforts more than they would have if they went door to door mowing lawns and shoveling snow,” Vodi said. “Considering the power of TikTok, YouTube, Snapchat, Discord, Reddit and Twitch, there are multiple platforms for younger generations to use and monetize — which can further their financial contributions to investing.”
Orman’s Opinion May Be Flawed, but It Speaks to a Universal Truth
Though Orman’s opinion may be flawed, it’s coming from the right place, or, perhaps, going in the right direction. Gen Zers do need to be avid investors in order to financially succeed and gain financial freedom.
“Suze Orman is on the money when she suggests the key to financial independence is to invest as early and for as long as possible — to capitalize on the power of compound interest,” said Michael Santiago, senior financial editor, Annuity.org.
“However, I cannot agree with her generalization of young people as financially mindless and valuing ‘dressing cool’ and cultivating their social media profile above all else,” Santiago said. “There are more than a few Gen Z babies that exhibit troubling behavior, but we need to assess this demographic in a thoughtful manner.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Suze Orman Has This Bone To Pick With Gen Z About Their Money Values
