Generation Z: Mastering financial success for a better future
14 February 2024 - By Emily Oliveira
I won a scholarship to attend my first Financial Advice Association Australia Congress (biggest event of the year for us!) in November of 2023.
As a young adult finding my feet in the financial planning industry, I was thrilled to encounter and listen to so many powerful speakers who were even more happy to see the next generation stepping into the world of finance.
Leaving the congress, it left me thinking about the next generation as a whole and where their current view on financial advice stands, so I asked them.
I organised a survey aimed at Generation Z (1997-2012) and here is what I found:
Around 50% of participants were already invested in the share market.
They were encouraged to invest by colleagues, friends, or family.
Their general understanding of a financial adviser was that they assist in providing guidance on investing and helping people meet their financial goals.
They thought that the best time to access financial planning advice was between 18-60, with the median age being 25.
The above statistics shocked me a little when it came to the best age to reach out to a financial adviser. With the age ranging from 18-60, the reality is that advice is relevant for people of all ages. It is important to receive financial advice whilst earning income, but it is also just as important to continue meeting with a professional adviser during retirement to maintain a comfortable lifestyle.
The general concept (collected from the data) of a financial adviser is they assist in providing guidance on investing and helping people meet their financial goals.
That is a huge part of the role they play, furthermore, financial advisers are also experts on providing advice around debt management, estate planning, tax planning, supporting big life changes (e.g. buying a home, expanding a family) and risk management (e.g. placing insurance policies to reduce financial risk in the case of an accident, illness, or death).
There have been numerous studies to show the benefit of seeking financial advice from an early age. Research from the Financial Services Council showed that a 30-year-old who seeks professional financial advice could conservatively save an additional $91,000 by age 65 compared to someone who doesn’t.
My goal as an emerging financial advisor is to support Generation Z to ensure they are set up for a successful and comfortable future. It is never too early to start planning; time is on your side!
