Study Shows Generation Z is Saving Money at a Much Younger Age Than Its Predecessors
Thursday, July 26th, 2018
For the last 10 years, Generation Z has watched their parents or guardians, and perhaps even older siblings, weather the Great Recession and the Student Debt Crisis. It's clear that they feel the financial pressure of the era they were born into, and according to the National Society of High School Scholars' 2018 Career Interest Survey, they are saving money at a younger age.
"Our 2018 Career Interest Survey not only shows us that Generation Z has high expectations for their future career, but they are also realistic in their approach to financial security," says James W. Lewis, President of NSHSS. "The lasting economic impact of the past 10 years has given this generation a sense of caution and even some anxiety, and companies that can account for this influence stand the best chance of attracting these great young minds."
The NSHSS 2018 Career Interest Survey, which gives insight into the fiscal pragmatism of Generation Z, found that 24 percent of these high-achieving scholars are the first in their family to attend college, and a large portion, 76 percent, plan to attend graduate school. Following their pursuit of education, the majority expect to get a full-time job either before graduating from college or within six months of graduation. While employment during their time in high school or college may be pertinent to their career goals, the motivation seems to be predominantly economic.
The Millennial mindset was to attend the best college possible. Many paid with loans and are now burdened by school debt. Gen Z has witnessed the student debt crisis and seems to be putting more focus on paying as they go. Students expressed a very real sense of needing employment to contribute to the cost of their education (70 percent), though a small percentage (15 percent) actually said they were working to contribute to tuition payments.
However, a vast majority of Gen Z reported that they would contribute to their college tuition through a salary earned from a job in college (70% percent) and/or through personal savings (49 percent).
While many aim to work their way through college and pay as they go, they are still under immense financial pressure to cover all of the costs associated with higher education.
Due to this, almost all of the survey respondents (88 percent) will seek grants or scholarships, and more than half (53 percent) will still end up taking on student loans.