How Does Gen Z Manage Money? (And Why Does It Matter)
Why should you care how Gen Z manages their money?
A. Because Gen Z financial tools will probably influence your own. (Good-bye, bulky wallet!)
B. If you sell a consumer product, you may want to be sure it can be paid for with all sorts of newfangled payment systems by you or by an intermediary.
C. Your employees may reject your current paycheck delivery method.
D. Geo-political events may be influenced by the effectiveness of fintech on savings, depending on who you believe.
That noisy scuffle you hear is fintech startups and established institutions vying for Gen Z wallets. All-mobile banking apps are raising sizable funding rounds, and Amazon is launching Amazon teen, which lets teens have their own accounts, funded by parents (for now). This isn't child's play—it's a land grab that will have competitive consequences as this generation matures, enters the workforce, and puts down roots.
Hey, mom and dad! What if you could automate your child's allowance, choose where they can spend, and freeze the card with just a tap of the phone? Greenlight Financial Technology, which makes a smart debit card for kids, just raised $16M to help parents do just that. No more coins for the candy store—use your plastic, Junior!
If you don't have a bank account, the way you get paid matters. While more young workers receive paper checks than older generations, they want options: nearly half would prefer a paycard so that they don't need to open a bank account. Check out (no pun intended) other Gen Z and Millennial payment trends here.
Can You Spare a Dime?
BlackRock, the biggest asset manager in the world, is investing in Acorns, a personal finance app that encourages its mostly youthful users to invest spare change from transactions. The goal? Introduce a younger, less financially established demographic to saving and investing. Who knows whether these customers will ever graduate to in-person financial advisors, but BlackRock CEO Larry Fink believes the rise of populism is tied to lack of savings. Points for putting his money where his mouth is...