Looking back at how Gen Z has evolved over the last five years since they participated in my School Entrepreneurs Program, it's been fascinating to see the shifts in their attitudes, behaviors, and career paths. These young people have been through a lot, from navigating the challenges of COVID to stepping into the workforce or starting their own businesses. What stands out most is their resilience and adaptability in such a fast changing world.
Here are some key things I've noticed:
1. Workforce Shift: Gen Z will make up 27% of the workforce by 2025, valuing flexibility and purpose-driven work.
2. Debt Management: Gen Z is focused on reducing debt. Financial institutions should provide tools for budgeting and credit management.
3. Trust Shift: Gen Z relies more on personal recommendations than online reviews. Businesses will need to build trust through transparency and community engagement. There has been an erosion of trust with the information online and the greater return through informal networks such as family, friends, work colleagues and other business owners when it comes to online purchases. Reputation has evolved back to the community village not the online hype with Gen Z.
4. Entrepreneurial Spirit: Many Gen Zers are pursuing side hustle or self-employment. Businesses should support freelancers with flexible solutions and resources.
5. Financial Literacy: While Gen Z finds financing options, they need more financial education to understand the long-term impact. Institutions should offer guidance on credit and lending.
6. Sustainability: Gen Z prefers brands with ethical practices and sustainability commitments. Businesses need to back up their claims with actions.
7. Work-from-Home Preferences: Many Gen Z workers prefer office environments for social connection. Hybrid work models will likely continue.
8. Property & Lifestyle: Gen Z values experiences over homeownership and is looking for affordable rental investments. This shift will impact the housing market.
9. Business Mindset: Gen Z entrepreneurs focus on growth and long-term success. Businesses must inovate and pritorise sustainability to stay relevant.
My Top Considerations Playbook:
- Flexible Business Models: Adapt financial solutions to cater to Gen Z's preference for freelancing, gig work, and entrepreneurship.
- Debt Management Support: Provide resources that empower them to manage and reduce financial burdens effectively.
- Tech-Enable Solutions: Ensure seamless access to digital and mobile financial services, mirroring their reliance on alternative banking platforms.
- Messaging Shifts: Business needs to shift away from "we want the sale" to "how to get a successful loan" or "free advice on achieving finance to decrease the damanging behaviors around credit."
- Sustainability & Ethical Business Practices: Align financial products and services with their sustainability-driven purchasing decisions.
- Education & Financial Literacy: Provide financial education programs that empower Gen Z to make informed economic decisions.
By intergrating these considerations, businesses can better engage with and support this dynamic, forward-thinking generation. The future belongs to those who understand and evolve with Gen Z's mindset, ensuring long-term growth and relevance in an ever-changing marketplace.
Astute Ability Finance Group
Website: astuteability.com.au
Toll Free: 1300 306 694