MOVE OVER millennials. While 20- and 30-somethings have seemingly been the center of attention for years, Generation Z is getting ready to move into the spotlight.
Generation Z is the name often used for post-millennial young adults, and depending on whom you ask, the oldest members are somewhere between 18 to 22 years old. The Pew Research Center defines the post-millennial generation as individuals born in 1997 or later. While the typical millennial view toward money management may have been shaped by the so-called Great Recession, the young adults of Generation Z have come of age during the second-longest stretch of economic expansion since the Great Depression.
"Generation Z is actually remarkably aware financially, more than we expected them to be," says Andrew Vahrenkamp, a senior research analyst with financial research firm Raddon, a Fiserv company. Raddon analyzed data from 2,500 teens between ages 16 and 18 for a report issued last year, which found that two-thirds of young adults surveyed already have a financial account. And according to the report, teens were three times more likely to have taken a financial education class or seminar as compared to millennials.
U.S. News spoke to finance experts who, like Vahrenkamp, are optimistic about the direction Generation Z is taking when it comes to money matters. However, they say that this generation of digital natives could make missteps when it comes to how they gather information, share data and spend their money.
In particular, the following money mistakes and misconceptions could potentially trip up Gen Z, according to experts.