TULSA, Okla. — Generation Z is breaking traditional taboos around money talk, and their approach might help everyone navigate the expensive holiday season with less stress.
While most Americans would rather discuss religion or politics than their bank balances, Gen Z doesn't buy into the idea that sharing personal financial circumstances is inappropriate.
"Financial stress is 100% a universal feeling and it can often be taboo topic," said Matthew Beatty with Bank of America.
Research shows only 38% of all adults feel comfortable discussing their finances with family, but 52% of Gen Zers would share those details, according to Bankrate.
A recent Bank of America survey reveals that two-thirds of Gen Zers don't feel pressured by friends to overspend during the holidays. Nearly half feel comfortable skipping social events they can't afford.
"We need to all take a page out of Gen Z's book and go all in on financial transparency," Beatty said. "Being open about financial realities, Gen Z is really changing the social money norms for the better."
Breaking the money silence
Gen Z's comfort with financial discussions extends beyond family conversations. According to Bankrate research, 42% of Gen Z workers and 40% of Millennials have shared salary information with coworkers, compared to just 19% of Baby Boomers.
The generation also embraces social media transparency, with 53% willing to post salary information on LinkedIn, according to a CNBC/Empower survey.
During holiday gatherings, 25% of Gen Zers say money is a normal discussion topic with friends and family, compared to 18% of Millennials, 11% of Gen Xers, and just 7% of Baby Boomers.
Building better money habits
Beatty says getting comfortable with financial transparency starts with self-assessment.
"Sometimes just dedicating specific time each week, even if it's only 15 minutes to mindfully review your finances without any judgment... establishing those kinds of check-ins can really make financial management part of your routine," he said.
He recommends the 50-30-20 rule:
- 50% of spending for needs
- 30% for wants
- 20% for savings. The framework can be adjusted to comfortably cover holiday spending.
Rethinking holiday gifts
To avoid holiday debt, Beatty suggests reconsidering gift-giving approaches, especially for children.
"Consider experiences as part of gift giving, especially with your children," he said. "At the end of the day, it's those memories that they remember, very rarely is it the toy."
Simple experiences like driving around to look at Christmas lights can create lasting memories without breaking budgets.
The anxiety paradox
Despite Gen Z's openness about money, financial worry remains a top driver of anxiety for the generation.
However, their willingness to discuss finances openly may be part of the solution to reducing money-related stress during expensive seasons like the holidays.
Consider adopting Gen Z's attitude toward financial openness as a gift to yourself this holiday season.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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