Here’s some somber news: According to the International Labour Organization, younger workers (aged 15-24) were “disproportionately impacted” by employment losses in the U.S. They experienced losses of 8.7%. Not everyone felt the pinch the same way. Women in particular reported unemployment losses of 5%, compared to men at 3.9%. Sadly, this is the case across all demographics in which women fall, as noted by CNBC.
In light of such setbacks, the research firm YPulse asked young people ranging in age, from 13-39, to share their top financial goal for the year. Here’s what they said:
- Save money/increase savings
- Earn/get more money
- Financial stability/Live comfortably
- Pay off debt/loans
- Get a job/Find a new job
- Buy a house/apartment
- Buy a car
- Buy stocks/Invest money
- Start/expand my business
- Rent a house/apartment
Regarding the latter point, it’s not much of a surprise to see this goal make the list. That’s because the number of adults aged 18-29 who lived with their parents increased by 2.6 million from February to July 2020. Those aged 18-24 accounted for 2.1 million of that increase, according to a Pew Research Center analysis.
Though 30-somethings face different challenges, Gen Z and Millennials share a common goal of saving and/or rebuilding their financial reserves. Expect both of these generations to place their focus on getting their financial house in order, especially after they regain their footing in their career.
What does this mean for employers? Younger workers would benefit from resources on how to save and the necessary financial steps to build an emergency fund. However, you should note that what they’re saving for is very likely to differ by age segment. For instance, Gen Z is likely to be saving for school, while Millennials might have their sights set on saving for a home, a college fund for their child(ren), and for emergencies.
The longer-term financial goals for these groups look different as well. Consider the fact that Millennials in their 20s might have ambitions to start investing in the stock market, while older Millennials are most likely to be interested in starting their own businesses. Either way, they’re going to need the cash on hand to pursue such ambitions.
The takeaway here?
Employers looking to attract and retain young professionals need to invest in such programs that help their workforce feel more financially secure. Pandemic or not, offering relevant solutions for their situation can provide a path forward. 101 Financial is a financial education company that focuses on helping middle-income families and adults take control of their financial lives. We provide educational classes that help our students budget better, bank smarter, manage debt better and build strong credit. Visit our website to learn more about how our Financial Wellness program might fit in with your goals: https://101financial.com