Ever opened your bank account and thought: “How do I have another bill due already?”
You’re not alone. Financial stress affects 61% of adults ages 18 to 35, whether it’s from:
Gen Z has been through a lot—from the COVID pandemic’s economic impact to inflation and job uncertainty. That’s why smart financial planning matters more now than ever. While we can’t control what’s happening in the world, we can learn how to handle our finances with confidence.
This guide breaks down simple financial planning for Gen Z so you can save, invest, and build real financial wellness.
Ready to dive in?
Financial wellness means being in control of your money—instead of your money controlling you. Ways to practice financial wellness include:
Setting clear financial goals—even small ones—helps you stay focused and visualize what you’re working toward.
Now let’s break down a few tips that can help you get there.
Step one: Establish a budget you can stick to. The 70/20/10 rule is an easy way to categorize your finances into three sections: needs, wants, and savings. (The old 50/30/20 rule you may have heard of isn’t as realistic anymore because of rising living costs, stagnant wages, and inflation.)
How to Categorize Your Finances
| Category | Percentage | Examples |
| Needs | 70% | Rent, utilities, healthcare, groceries |
| Wants | 20% | Vacations, dining out, shopping, non-essential electronics |
| Savings | 10% | Financially preparing for buying a house or car |
Budgeting doesn’t mean you have to eliminate life’s little joys or punish yourself. When you plan it right, it actually makes life easier and less stressful (which means less spiraling for you).
Your credit score is your financial reputation. A solid score helps you get approved for apartments, car loans, future mortgages, and lower interest rates—which means less money wasted on interest fees.
Building good credit doesn’t have to be stressful. Start with these three tips:
These tiny habits add up and make your financial life much smoother over time.
One perk of Gen Z living worth celebrating is freedom from the complicated spreadsheets of previous generations. Apps like Emma, Cleo, or Rocket Money can instantly:
You get an instant snapshot of where your money is actually going, so you can fix things before they spiral out of control. Think of these apps as a money coach in your pocket.
Once you’ve tackled high-interest debt, it’s time to make your money grow. One of the smartest moves for young investors is getting into low-cost index funds. You can choose funds focused on areas like AI, renewable energy, or biotech: in-demand sectors with projected long-term growth.
You don’t need a big budget to start, either. Fifty dollars a month can easily buy fractional shares through platforms like Robinhood or M1 Finance. Over time, you’ll tap into overall market growth, stay ahead of inflation, and let compound interest steadily build your wealth.
Life can be unpredictable: sudden layoffs, broken-down cars, unexpected medical bills. Having three to six months of living expenses saved gives you much-needed breathing room when life blindsides you.
To start building your emergency fund:
An emergency fund turns those “not again!” moments into “okay, I’ve got this.”
Ever wanted to turn that photography hobby into a side hustle? Creating more than one source of income is a core part of Gen Z’s money mindset—one that boosts financial stability and speeds up wealth-building.
By earning beyond a single paycheck, you protect yourself from income ups and downs while giving your savings, debt payoff, and investments a major lift.
Some ideas for additional income streams:
The key is to start with something simple that matches your skills and interests, manage your time, and track your income—no need to hustle 24/7.
As your side projects grow, reinvesting a portion of the extra income helps you compound your earnings and build long-term financial independence.
Financial literacy isn’t something you figure out once and forget. It’s a valuable skill set, just like cooking, coding, or learning a new language. Staying knowledgeable is part of the process.
To learn more about finances, you can:
Finances don’t have to be stressful (or chaotic, depending on your situation). Planning and awareness can take you a long way. In this article, we’ve covered a few tips to enjoy financial wellness:
Strengthening your financial knowledge is one more way to improve your financial wellness, and financial education is one of the smartest investments you can make for your future self.
Whether you’re just starting out or advancing your career, The University of Texas Permian Basin’s 100% online finance programs give you the tools to understand money, build confidence, and create strong career opportunities.
Choose from three online programs:
Your financial life doesn’t have to feel confusing or overwhelming. It starts with learning. Your future is yours to shape—and we’d love to be a part of your journey.
Sources:
https://www.indeed.com/career-advice/career-development/70-20-10-model
https://www.chase.com/personal/credit-cards/education/basics/how-much-credit-utilization-is-considered-good
https://au.finance.yahoo.com/news/gen-z-money-trend-how-just-5-can-put-you-on-the-path-to-being-a-millionaire-000007665.html
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