Financial Planning Tips for Today's Youth

Born into a world of constant connectivity and boundless information, Gen Z is navigating adulthood with habits and preferences that set them apart. As per UN World Population Prospects 2022, more than 50% of India’s population is below the age of 25, and over 65% is below the age of 35. The future of our nation depends on the youth, i.e. Gen Z (born between 1997 and 2012). These young adults are likely just starting to enter the workforce or at the early stages of their careers.

According to the 2022 Investopedia Financial Literacy Survey, Gen Z is more financially sophisticated than the previous generations; however, this generation is known to want instant gratification and, hence, indulge in risky investing habits such as speculative investing. Such speculative trading instruments can prove to be catastrophic to your wealth-building journey. According to a report by SEBI, the share of participation of individual traders belonging to the age group 20-30 saw a significant rise from 11% in FY19 to 36% in FY22. The report went on to state that 89% of individual traders in equity futures and options incurred losses.

When it comes to your hard-earned money, one needs to cultivate patience, consistency, and discipline. Moreover, it is important to seek guidance from a financial advisor time to time and trust in delayed gratification. Here are a few tips for new investors to safely park their surplus, manage their finances, and create wealth:

To conclude, As the new generation sets foot in the professional world, embracing sound financial planning practices becomes paramount for a secure and prosperous future. By incorporating the aforementioned principles, Gen Z can navigate the complexities of financial management with ease. Moreover, opting for the guidance of a financial advisor can set the stage for a financially stable future.