I'm a Money Coach for Gen Z: 4 Fall Moves To Give Yourself a Financial Jump Start
Gen Z is no stranger to money issues. According to a recent Bank of America study, nearly half of the generation said the high cost of living is a barrier to their financial success. Another 42% said they’re living paycheck to paycheck. And despite those money issues, 92% of Gen Z still treat themselves to small indulgences, with over half doing so weekly.
To help members of Gen Z get ahead financially, Nia Baiyeroju, Gen Z money coach and founder of Nia Knows Finance, recommended four moves to make this fall.
Read Next: Gen Z Views This Boomer Spending Habit as 'Cringe' — Are They Right?
Keep Learning: How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too
Track Every Dollar for 30 Days
You can’t fix your budget if you don’t know where your money is going. Baiyeroju recommended using the free tier of the Rocket Money app (or something like it), keeping notes on your phone or using your bank statement to track where each dollar goes.
For 30 days, keep a record of the amount of every expense, from your rent to boba tea. You might be amazed at how much of your money is going toward nonessentials.
Baiyeroju warned against changing your spending while tracking, as it can skew the data. Instead, she advised spending as normal and observing. The goal isn't to judge yourself; it's to observe where your money actually disappears to.
Attack Your ‘Big Three’ Expenses
Canceling a $12 subscription feels productive but skips where the real money is. Instead, Baiyeroju said to look for opportunities to save big on housing, food and transportation.
“[Is] housing over 30% of your income?” she asked. “Look at a roommate or a cheaper unit. [Is your] car payment and insurance eating a huge chunk? A cheaper car saves way more than canceling Hulu.”
Food away from home is often the biggest hidden source of money leaks. So, start cooking at home as much as you can to spend less. For example, if you spend $150 per week eating out, cutting that amount in half can save you almost $4,000 a year.
Set One Number and Date
Baiyeroju recommended setting a savings goal using one number and one date. Making a goal to save $3,000 by next August in order to move out is better than simply stating you want to save more.
Specific targets with firm deadlines actually stick because you know what you're chasing. But keep in mind that setting your sights too high can kill your motivation before you even start saving.
Automatically Save Some of Your Income Before You See It
Making savings transfers automatic — aka “set it and forget it” — can be a useful strategy for saving consistently. Baiyeroju said it works because money you don’t see is money you won’t spend.
Set up automatic transfers of 10% to 20% of your income into a separate high-yield savings account for the same day your pay is deposited.
Keeping the savings account at a different bank than your checking account is a smart move. “If it’s one tap away in your main app, it’ll get ‘borrowed,’” said Baiyeroju.
The Bottom Line
You don't need a perfect system. You need momentum. Pick one of these strategies, commit to it through the season and watch what shifts. The goal isn't deprivation. It's control. And that's worth more than any weekly treat.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: