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Gen Z Money and Finance
212 Plays3 years ago
Money and finance have been top concerns since we first started studying Generation Z in 2014. This episode features Anna Kubiak, a finance professional and member of Generation Z, to discuss money concerns and financial practices.
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Transcript
Introduction
00:00:00
Speaker
Welcome to hashtag Gen Z. I'm your host, Megan Grace.
00:00:18
Speaker
Hey there, this is episode 30 of hashtag Gen Z. If you tuned into the last few episodes, we've been exploring some of Generation Z's biggest concerns from voting in politics to the ironment and expression.
Gen Z's Financial Concerns
00:00:28
Speaker
In this episode, we'll be exploring another concern that is at the forefront of the minds of Generation Z, money and finance. Throughout our years of research, Generation Z has shared many times and in many ways their concerns about money and finance. There's so much we've learned in the last few years about Generation Z's mindset around money.
00:00:46
Speaker
For instance, for the most part, they're more apt to save than to spend and are incredibly risk and debt averse. They're concerned about money but are not fully driven for striving for wealth. Generation Z is also one of the first generational cohorts to start their initial financial literacy training in an online world with endless web resources such as social media accounts of financial influencers
00:01:08
Speaker
websites, podcasts, and online courses. Generation Z is also growing up in an important time in their financial lives, as the very oldest are starting their first jobs and graduating college. But they're also doing so in the middle of a pandemic that has shaken up the global economy and the financial lives of many. It's one thing to learn about Generation Z's money mindset through what we can through surveys and analyzing data, and another thing to live it.
Anna Kubiak's Finance Journey
00:01:31
Speaker
So for this episode, I'm joined by Anna Kubiak, a member of Generation Z who currently works in finance.
00:01:36
Speaker
Anna is a 2019 graduate from Canisius College where she studied finance and economics. She's currently pursuing her MBA with a focus on finance and financial management services. Anna currently works at a bank and lends her hand in mind to her fellow Gen Z peers when it comes to financial matters. I'm very excited to chat today about money and finances. And my guest Anna Kubiak is going to be able to share quite a bit with us. She's got a wonderful background working in finance and helping actually people her age.
00:02:04
Speaker
navigate their money issues. So welcome, Anna. Hi, Megan. So happy to be here. Thank you so much for having me. So tell us a little bit about what you do. I know that you are relatively recent graduate. We were connected through our sorority, which is always wonderful to have a sister in the conversation. But tell us a little bit about your background and how you really got involved in finance and personal money management.
00:02:26
Speaker
Yes, so I graduated from Canisius College, which is a small Jesuit institution in Buffalo, New York, in 2019, with a degree in finance and economics. My journey with
00:02:42
Speaker
finance and learning about it didn't really start there though. I actually started studying personal finance back in high school and I did a program there where I got to intern a little bit and learn a little bit about
00:02:59
Speaker
managing personal finance from a very young age, which was nice. And then naturally and organically I went into studying that in college and a lot of people don't always stick with their first major, but I did, which is wonderful. And when I was doing my undergrad, I interned at a bank and I absolutely fell in love with the retail side of banking because it takes
00:03:27
Speaker
personal side to managing your money and I see it as a great way to help people because it's one of those necessary evils where you need a bank to put your money and you need it to be a place that you can go to when you need guidance and you don't know where else to turn and I have found that
00:03:50
Speaker
not only throughout college, but even after graduating, that has been a big push is I find myself really drawn towards the people that are just getting started. They're either getting their first jobs or they're just new to the area. They're fresh out of college and they need to establish a banking relationship. I like being that point of contact to help them from the ground up and help them grow. I have been
00:04:20
Speaker
been in the bank for about two and a half years now. So not a super long time but long enough to get a feel for how things operate and I've learned especially how to best help people in that way. I always tell my clients I feel like I'm the primary care physician of banking where I figure out what needs to be done and then give you to a specialist from there.
00:04:47
Speaker
So you mentioned getting interested in finance and kind of money and managing money at a relatively young age because I don't feel like a lot of high schoolers are tuning into that or maybe they are and I'm just not noticing that but I know when I was in high school it was not at the forefront of my mind. So really what led you to becoming involved in that and
00:05:05
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Do you think there was a moment when you were like, yes, my interest is sparked in this area? So when I was a freshman in high school, I had an extra spot in my schedule. And instead of taking a study hall, I wanted to take something that would better my knowledge
00:05:25
Speaker
from that perspective and I was between doing an art class or doing this business course that they offered it was just introduction to business and I found it really interesting and my my parents actually pushed me of hey like try this business course see what you think of it it's only a semester let's see how it goes and
00:05:47
Speaker
I liked it. It was with primarily upperclassmen, which was a little intimidating to me, but I got very close to my teacher in that class where she was telling me by the end of it of, hey, we're launching this new program. It's through through NAF. I'm not sure if you're familiar with those, but they're a nationwide organization.
00:06:12
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but they are launching a finance academy at my high school and my class would be the first class that they'd be accepting applicants.
00:06:21
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So I'm, I always like to be the first one to do anything. I'm that type of person. So I got involved in it right away and ended up being a part of the first graduating class. And what was really interesting about that course is it was a very, it was a surface level of personal finance. So the first course we had to take was just a introduction to finance. Then when we're juniors, we have to take an intro to accounting course and
00:06:49
Speaker
By the time we're seniors, we have to take a course directed in personal finance, and then also a business ethics course. With some other supplemental courses in there as well, over the summer between our junior and senior year, we completed an internship, which I did with a local organization here, and it was a really interesting way to get involved.
00:07:19
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in money management at a very early age, and then as soon as I went to college and decided to continue pursuing that direction of study, I already had a background in it, which I think is missing from a lot of education in
00:07:38
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high schools. I have been hearing that there is more talked about with applied mathematics and everything like that when it comes to balancing a checkbook and paying your taxes, but I still think some of that information is outdated and there could be a lot more of it. So I do consider myself very lucky in that standpoint. So you mentioned that what interests you in working in your current role at the bank and working with people is
00:08:07
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People that are interested in it are just kind of getting started in their career with finances. You mentioned getting a first job or saving for college or managing money in college.
00:08:16
Speaker
And that's really our Generation Z group right now, our Generation Z cohort, which you're a part of. But I think you have this unique perspective because you are helping a lot of people that are your peers. And something that we've seen a lot in research is that Generation Z is very concerned about finance and they're very concerned about the ability to pay for everyday things and to manage money.
Lessons from Millennials
00:08:42
Speaker
Where do you think some of this worry about finances and money is coming from for Generation Z? I think it comes from previous generations. So if we look at it, the generation before us, millennials are 100% defined by their student debt. They are the generation that is almost convinced that
00:09:08
Speaker
they're going to die with their debt, which is so unfortunate, especially because it's not necessarily always the truth. We've put so much emphasis on higher education and you need to have a four year degree to be successful that it's become the norm to take on hundreds of thousands of debt between
00:09:28
Speaker
undergrad graduate school and so on that in order to be successful, that's you need these types of certifications, which isn't necessarily the truth. And with being one of the older members of Gen Z, I'm right at the beginning of getting those first jobs and looking at your first home and everything like that.
00:09:50
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where it's still a little too early to tell, but I'm seeing from my peers that a lot of them think they're worse off than they are. That isn't necessarily a bad thing to have. It's having the right balance of depth. That's important. And it's important that as early as you can to be able to have somebody to lean on when you have questions or to talk you off the ledge when you're convinced that
00:10:19
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all you're going to be doing is paying off this debt that you took out when you were 18 for the rest of your life, which isn't necessarily going to be the case. I think debt is a huge component of where
00:10:33
Speaker
I am a millennial with a lot of student loan debt. So I can agree with 100% what you said. And I think that even though Generation Z was relatively young when a lot of that was happening, maybe they had older siblings, aunts, uncles, a lot of there was a lot of this seeing millennials grow up and not necessarily not being money savvy, but there was a lot of other things happening when we also think about the fact that there was very strongly a
00:11:00
Speaker
a recession that took place as millennials were going to college. And then if you look and you studied economics, so you know, anytime there's a recession, people actually go back to school. They make the investment to go back to school because of the likelihood of increased earnings on the other side. And so it's coupled with a few different things. And I think that Generation Z is, and correct me if I'm wrong, but I hear a lot of times like saving for a rainy day, even though they don't know what the rainy day might be. Do you think that that's true?
00:11:26
Speaker
which isn't necessarily a bad thing. It just depends on how you're saving your money. So what we're seeing, especially in the economic conditions right now, is we're in a super low right environment, which is great if you're looking to buy your first home. But it's absolutely terrible if you're looking to put money away in that little savings account of yours, which that's nice to have for that rainy day fund. But there's also so many other ways to grow your wealth that not everybody's
00:11:55
Speaker
super accustomed to using all the time. So that's why it's important to have somebody to be able to, hey, I have this sum of money, how can I grow it? Because a lot of times if you're just keeping it in a savings account for yourself, you're not even going to keep up with the rate of inflation. And five to 10 years from now, that money is going to be worth less than it was when you put it there. So you brought up an interesting point that I think the
00:12:24
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It would be good to explore a little bit more. And you said it's important to have somebody to talk to about it. And I'm always curious where in these life things, learning how to manage money is something that generations have been doing for decades and centuries at this point. But where is Generation Z specifically getting information about their finances and managing money? Like where are sources that they're going to? And are there any trends around that that we should take note of?
00:12:52
Speaker
I think this is always so interesting because especially with a constant push of moving your relationship online and being able to manage everything from your personal devices, which is wonderful, especially under the conditions of COVID-19 when going somewhere in person isn't always an option. It's not always
00:13:17
Speaker
what's best. I, Gen Z gets a lot of their information online either from influencers on social media that give financial advice, whether it's on Instagram or Twitter or Snapchat or TikTok, even I've seen a lot of individuals advising, giving financial advice through those platforms.
00:13:41
Speaker
which it's a great place to start, but those aren't necessarily going to be catered to you specifically. So a lot of financial management teams have taken the approach to moving a lot of their
00:13:58
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systems virtually, whether they're doing business Zoom calls or other types of virtual communication that is absolutely necessary when you're talking about planning for the future. Those places of relying on
00:14:20
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influencers and individuals on social media, that's a great place to start. It's a great way to do your research and find out what's out there, but you need to get a little bit more specific when it comes to making sure that the plan makes sense for you. So you mentioned that there are some other resources that are out there that might be helpful for people that are just getting started in their money management that might not be on social media, but would you care to share a few
00:14:48
Speaker
Resources that you would suggest for people to be getting more information Maybe if they want to do some self-study before they're going to potentially talk to someone to help with wealth management So I think the most important place to start in terms of wealth management is you need to You need to start living on a budget and now what that means is different for everybody I've heard a lot of individuals
00:15:13
Speaker
In this field, talk about a 50-30-20 model. What that means is you're taking your income and putting 50% of your funds towards your needs and your bills. 30% is going towards your wants and then another 20% is going towards
00:15:33
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savings goals. So that necessarily doesn't work for anybody, everybody, but that's just a basic way to look at it. I think a lot of the best ways as I've heard there are a some of my clients like to utilize utilize different
00:15:52
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budgeting tactics that they've found online, different spreadsheets. I've heard envelope systems that are useful for people and that's just divvying up cash using different accounts that are designated for different purposes. In terms of any specific resources that are out there, I don't know if one's necessarily better than another, but I think it's just important of seeing what's out there.
00:16:18
Speaker
weighing your pros and cons and seeing what works for you. Try one or two and find something that works. Try them all. But it's all going to make sense for how basically what your expenses are at that time and what works for you. And what works for you now isn't necessarily going to work for you even a year from now, two years from now, what you're doing.
00:16:44
Speaker
in college isn't necessarily gonna make sense after you graduate or even after you're trying to plan for your first home. Your expenses for when you're trying to get through your first year out of college are very different than five years from then. So you brought up some interesting things about perspectives on money and potentially financial goals. Do you think there's anything that's unique of note about Generation Z when it comes to finances
00:17:11
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and money, maybe it's goals that they have or aspirations or just general trends that we should be paying attention to when it comes to Generation Z and money.
Non-Traditional Financial Paths
00:17:21
Speaker
I honestly think that Gen Z is very... I think they're very driven and I'm honestly so impressed with them every day. They're very good at
00:17:35
Speaker
not necessarily doing the traditional approach to life in a way. I do think that although we've put a lot of pressure on the
00:17:52
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get a bachelor's degree, then you get your job, then you go to grad school and that's life. I think there's been a lot different of an approach to that where there's been a lot of individuals that are taking advantage of supplemental income. I have found in speaking with a lot of my peers that a lot of them are looking into purchasing investment properties where they're purchasing a duplex and living in half of it, or a lot of them talk about taking advantage of
00:18:23
Speaker
additional self-employment opportunities such as upcycling clothing or vintage works or even social media management aside from the regular job. The idea of having a side hustle is really popular these days and it's just a way to continuing to find that extra room to save so that you're ultimately able to reach that goal faster.
00:18:51
Speaker
I think what you're bringing up is also the idea of a side hustle is there's so many people out there that are engaging in that. I think that that's something that Generation Z has also seen in some ways their parents actually do that or they've seen millennials do that. I think that it's almost just becoming like, if you don't have a side hustle, what are you even doing? What are you doing?
00:19:14
Speaker
real estate is something that we've seen come up in a few of our studies as a really important to Generation Z as an investment. And I know that you brought up a duplex or a real estate investment. And I think that that is one of those things that that is probably one of the most tried and true things that you can invest in is having property. And so I think that it will be interesting as Generation Z is growing up as you and your peers are kind of into that phase.
00:19:37
Speaker
I wonderful see home ownership ages go down because they were going up for a long time for millennials. And so I think it'll be really interesting to see how Generation Z focuses on that because it's something when we ask like, what do you make a good life in one of our studies and owning a home or being able to provide for my home and buy a house was like one of the things that came up.
00:19:58
Speaker
most frequently. And I think it's also this element of stability that comes with the house. And in so many other aspects of Generation Z's life, things feel a little bit chaotic for them. Not that they are chaotic, but things around them feel chaotic. That owning a home is the quintessential standpoint of stability. And I think that that's, in some ways, as Generation Z pushes the boundaries and really redefines life of young people in so many other ways,
00:20:26
Speaker
is still the one adult thing that they're pining after in a traditional sense. I agree with you 100%. But I also think that what home ownership means, we're also going to see a shift in that because we've seen a lot of renting gone up prior. And I think with
00:20:48
Speaker
everything that's going on, and I think we're going to see a lot more people look to spread out more into suburban rural areas rather than cities. Where, yes, a lot of people are drawn to cities specifically, but I think people are looking for more space and Gen Z's taking advantage of those opportunities as well.
00:21:14
Speaker
So I always like to think about ways in which we can create more generational harmony. The ways that we can work together as generations. I know we talked quite a bit about millennials and Generation Z and how we're not so different in age, but we've definitely taken different approaches to finances.
Intergenerational Support
00:21:30
Speaker
But I do like to walk away with kind of a takeaway for people because some of our listeners are of older generations that are able to support Generation Z in a variety of different environments, whether that's raising them, teaching them, coaching them, supervising them, managing them.
00:21:43
Speaker
You name it, there's a lot of different ways that older generations are involved in the lives of Generation Z. So how can older generations help support Generation Z in regards to financial matters and concerns?
00:21:55
Speaker
I always think it's really important to share your story on how you got to where you are. Because a lot of older generations, they got there for a reason. And whether it was taking advantage of high rates environments and investing their money and getting it to grow for them, awesome. But I also think it's important for
00:22:20
Speaker
older generations to take the approach to apprenticeships more seriously and take individuals of Gen Z under their wing and almost show them the ropes. Not only in terms of finances, but also as we talked about before,
00:22:40
Speaker
Yes, a traditional four year college is still seen as the norm but a lot of individuals are taking taking advantage of the side hustle gig and a lot of older generations can take it, not take advantage but allow for
00:22:57
Speaker
members of Gen Z to learn underneath them and create that level of interest in what they're doing so that they can develop their career paths and whether it remains a side hustle or it becomes a primary career path that'll be dependent on what they get out of it. But ultimately it's educating and sharing your story I think is most important.
00:23:22
Speaker
I think that's a very easy, tangible takeaway for people as well. I know that as a young adult, I've kind of forgotten my parents were one time young adults and being able to talk with them about their finance. I was like, when you were my age, what was life like? They were like, of course we made dumb decisions. Of course we did that stuff. We recovered and we learned, and now we're much better at it. But I never really thought to ask them until I was like, true. I was probably 25 or 26.
00:23:49
Speaker
And I think I waited too long. So I really like your suggestion that I think that even teenagers can be talking with their parents or, you know, maybe not teachers, but teachers being able to talk about the importance and you know, you brought up applied math, like the importance of actually being able to use these things in school.
00:24:05
Speaker
Um, in your real life and everyday life is so important, um, to help people to buy into things. But, um, I also think I definitely agree with your mindset around like the side hustle and the acceptance of the side hustle. Um, I think it's so important because sometimes people that are, you know, 10 99 or contract workers, whatever you want to call it, or if you know, you've got your Etsy shop, people sometimes look.
00:24:26
Speaker
It is just like a hobby and it could actually be the outlet of a passion that also brings in money But is really important and maybe it's gonna be a side hustle for now and then it'll be a full-time hustle but I think that that that Perspective on someone having a side job like before they people probably thought like oh someone has a side job They really can't make ends meet whereas other people I think more and more commonly people having a side hustle just allows them to live
00:24:49
Speaker
little bit more comfortably or, you know, to pursue a passion of being a photographer and being paid for skills and things that you can actually contribute. So I think those are two very tangible things that listeners can be paying attention to and supporting. Well, Anna, you've been just a wealth of knowledge and information for people, not only hearing from a member of Generation Z
00:25:14
Speaker
Growing up in Gen Z but working so closely with financial institutions I think is really important. But I wrap up every episode the same way because I think it's important to shine a little light on Generation Z. And I would love to know what is your favorite thing about your fellow Generation Z peers?
Gen Z's Resilience and Learning
00:25:33
Speaker
I have so much respect to how resilient and open to new experiences Gen Z is.
00:25:44
Speaker
are constantly looking to further develop skills. And we are constantly trying to become the, I would say, the most educated version, but it's not always education, it's taking advantage of new opportunities, workshops, different means to learn. And I think it having the
00:26:10
Speaker
Having the internet and being able to take advantage of all of these different outlets to be able to become more knowledgeable and develop more skills is so inspiring and it continues to drive me to become the best professional that I can be, both in my professional life and then also in my personal life as well.
00:26:30
Speaker
I agree with you. I think Generation Z is very scrappy. This idea of if I don't know it, I can go learn it is something that I love about this generation. Especially if they're excited about something, they're just going to go figure it out and do it. Some people will be like, oh, this generation's lazy. Well, everybody's been saying that for years about every generation, so I think we need to
00:26:53
Speaker
We need to take that message and put it aside. But this generation to me has always been so, um, the willingness in the initiative to be self-taught, I think is something we have to commend. Um, like my, the interns I work with at my job are like, I don't know how to do that, but I'll figure it out. Don't worry. And I'm like, and I don't worry about them because they always come back and being current college students, they, they have just a tenacity to be like, I'll figure out, I'll figure it out. I've got the resources to figure it out. And I appreciate that about them. It's a little known fact about Generation Z. They are scrappy.
00:27:23
Speaker
It's such a positive outlook on things in the way of, I don't know it now, but I will know it by the time I'm done with it, which I think is absolutely just a great approach to work and how I think more people should take that because honestly, we are never going to start a job and know it inside out and everything about it and everything we're going to do. But it needs to be accepted that
00:27:48
Speaker
We'll figure it out as we go. Yeah. And I think that that in itself is like a very important intellectual muscle to flex is that you never actually know everything. It's impossible to know everything. And so it's almost humbling to be able to say like, I'm pretty good at this, but I know that I still need to learn. I think that that will benefit generations if they keep up that energy and that mentality into their careers.
00:28:12
Speaker
I'm really excited to see what they do with that.
Gen Z's Financial Landscape
00:28:16
Speaker
So, Anna, thank you so much for spending time today talking about money, talking about financial management. Sometimes people don't want to have the conversation because they want to run away from it, but I think it's important that as we know with Generation Z, this being such a topic that they're worried about money and they're worrying about finances, that we have these conversations so we can best support them. So, Anna, thank you for being here today and all the wonderful work you do with the clients that you work with. Thank you so much, Megan.
00:28:45
Speaker
Another big thank you to Anna for joining me in this conversation. While every generation grows up, gets a job, and starts to build their financial foundations, it is important to fully understand the context and scope of the financial world that Generation Z is currently navigating. Not only does Anna share her personal experiences as a member of Generation Z, she gives us a unique perspective through her professional work in finance.
00:29:08
Speaker
As Generation Z wades the waters of the pandemic's impact on the economy and the financial world, it will be interesting to learn how their perspectives and behaviors around money shift and evolve. But until then, members of older generations can do our best to lend guidance and mentorship around money, hire members of Generation Z, and help develop the money management savviness they need for a sound financial future.
00:29:31
Speaker
Thank you for tuning into this episode. As always, if you enjoyed this episode, please rate, review, and subscribe wherever you listen to podcasts. We'll continue discussion and social issues important to Generation Z in coming episodes, but if you have a topic you're interested in or a member of Generation Z that I need to chat with, please head over to my website, meganmgrace.com, or you can find me on social media to drop me a quick note. Thank you again for stopping by. Let's continue this conversation, and we'll chat soon.