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Gen Z is one of the most financially aware generations at the moment. They are realistic, hard-working, and financially responsible. Thus, it is no surprise that Gen Zers value financial planning. More and more people from this young generation are looking for financial advisors and unfortunately, it can be hard to find sometimes.
If you are a Gen Zer looking for help with financial planning in this article might help you. For starters, it will give you some tips on what to take into consideration when choosing a financial advisor. Then, the article will show you great financial advisor firms in that can be options for you to take into consideration as someone that is part of Gen Z.
Generation Z is composed of those born at the turn of the century and ranging in age from 14 to 24. Since most Gen Zers are still quite young, many think they don't have a clear picture of what they really want yet. However, recent surveys indicate that members of this generation hold strong opinions, habits, and preferences that contrast with those held by previous generations of millennials. In fact, Gen Z’s views and behaviors bring them closer in mindset to their parents, grandparents, and even great-grandparents, who grew up amid the Great Depression. As unusual as that might sound, there is a very logical explanation behind that.
The economic events that unfolded during a person's childhood and teenage years tend to affect their views on financial matters. Taking that into consideration, Gen Zers have a not-too-distant economic downturn that left an indelible mark on their consumer behavior. This mark is similar to what the Great Depression did to their ancestors. Millennials, on the other hand, grew up in a very positive financial moment in history. They were optimistic and believed in the American Dream. This American Dream concept was a baby boomers’ notion that disappeared a little with Generation X but was brought back by Millennials. The reality check for Millennials only happened when they were already adults, with the 2008 financial crisis.
Generation Z, however, was quite young when the financial crisis happened, which made them more financially realistic. For instance, this generation doesn’t believe they can count on the concept of the American Dream. Due to that, this generation is considered hardworking, debt-averse, economical, and has already begun to save for retirement. Even though the oldest Gen Zers are 24 years old, only 10% of this generation doesn’t have a bank in the US. 12% of them are also already saving for retirement – with 35% of Gen Z planning to start saving for it in their 20s.
But this doesn’t mean they expect the same things from a financial advisor as their parents and grandparents did. Actually, because they are such a realistic generation, they are quite critical of traditional financial institutions. For instance, they don’t fall for financial services that don’t offer actual value. In addition, being brought up in a digital environment made Gen Zers quite impatient to go through unnecessary procedures. Thus, if you are part of this generation, there are some major things you probably demand from a financial advisor.
Financial advisors are professionals who assist you with your overall financial planning, such as creating strategies for reducing financial risk and building wealth long term. They can give you a game plan that sets you on the path to achieve your financial goals. Financial advisors can come in many names, such as wealth managers, investment managers, financial coaches, and so on.
It became clear that Gen Zers need new approaches when it comes to their financial planning. However, very few financial advisors have adjusted their services to this generation. The industry of financial advisors is traditionally catered to older and wealthier clients. But the rising number of millennials made the industry adapt to this previous generation and the same is expected to happen with Gen Z.
Many people don’t expect such a young generation as Gen Z to already be looking for financial advisors. But the truth is that they are not only looking for financial assistance, but they value it quite a lot. This is because Gen Zers believe their financial challenges to be greater, and more complex, than previous generations. As a result, they are more likely to rely less on fully automated platforms. Instead, Gen Z looks for hybrid approaches that combine the algorithms of robo-advisors with the real-world guidance of a financial advisor.
Thus, even though it will be hard to find a financial advisor focused solely on Gen Z, there are many financial planners that can assist this generation very well. Going for a financial advisor that already has experience with Millennials can be a great option. But there are other ways to choose the best financial advisor as a Gen Zer.
If you are part of Generation Z and are considering organizing your financial life and future with an expert, there are some tips to take into consideration when choosing the ideal financial advisor for you in .
Define the type of assistance you need. Identifying what you want from the financial advisors is a great first step towards finding the best match. For example, if you need assistance with taxes, search for an advisor specialized in tax work in $, including the appropriate qualifications. Or, if you are only looking for investment management, perhaps the best fit will be a low-cost service such as a Robo-advisor.
Search for a Financial Advisor Who Is Close to Your Age. This may sound silly, but it can be a vital factor. It is hard to make a financial advisor from a completely different generation understand the needs and struggles you are going through as a millennial. There are exceptions for this, but working with a financial advisor with a top 10-year age gap from you will probably be a better fit. They will know what you are going through not only on a professional but also on a personal level because they might have gone through similar circumstances.
A Good Personality Fit Is Important. You don’t need to be friends with your financial advisor, but you do need to trust them at least a bit for it to work. If you are accepting financial guidance from this professional, it is important to have some personality fit. This will not only improve your trust in your financial advisor but make the whole process more pleasant.
Look for a Fee-Only Advisor. Some financial advisors owe their clients a fiduciary obligation, which means they must serve their client' best interests rather than their own. The most recommended is to work with a licensed, registered fiduciary. In addition, it is ideal that the advisor works on a fee-only basis. This means the professional will only be paid directly by you rather than by commissions for selling specific investments or insurance policies, resulting in more unbiased advice.
Titles Can Be Meaningless. Many consultants use popular titles - including the “financial adviser” itself – without any specific qualifications. So, don’t assume someone has training, credentials, or registration just because they use an official-sounding title. Be careful and do your own due diligence before trusting a professional. Look for titles such as “Certified Financial Planners” (CFPs) or “Chartered Financial Consultants” (ChFCs). These require rigorous training and minimum experience to be achieved.
Always check the advisor’s credentials. Regardless of what title, designation, certification, or licenses financial advisors claim to have, it’s up to check their qualifications and background.
You know the main aspects you should take into consideration when looking for a financial advisor as a Gen Zer. Now it’s time to analyze and compare the options around you. In $, there are many firms that work with assisting younger clients with their financial planning. When choosing between these options, it is important to compare them in every aspect you can. That is the best way to know you made the right decision. And don't forget to do your own due diligence.
With the advancements of video call services offered by these professionals, you can also explore financial advisors outside of or even , far from where you live. But if you want an expert based near you, here are the best financial advisors for Gen Z in :
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