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Education

Three ways Gen Z is a payment provider or a business to buy from, compared
with a little over 35 percent from previous generations (see
changing the world http://tinyurl.com/mpdtyvr8).
No wonder the idea of proactive transparency started
of finance taking root in progressive companies. Younger adults are
more willing to support businesses that are transparent
about sourcing, production, and the impact of their
products and services.

Furthermore, Gen Zers are astute at telling whether
someone is being genuine. That's a primary reason why
professionals whose sole function is to make sales can't be
successful with this generation (young adults hate being
sold something). Gen Z mostly resonates with brands that
provide education and value.

3. They have distinct spending habits
By Chad Otar
Lending Valley Members of Gen Z are both big spenders and big savers. It
might seem hard to believe, but in 2023, most young adults
en Z, comprising individuals born between managed to save money on something and then spend a
1997 and 2012, represents almost 70 mil- lot on a different item or experience (more than any other
lion individuals in the United States (see age group, in fact).
G http://tinyurl.com/yv58mmwc). Since the young
adults in this group have enormous spending power, busi- Gen Z has been dramatically affected by the pandemic and
nesses are tailoring their offerings to this cohort's unique inflation. And while COVID-19 made them actively think
preferences. about what they valued the most, soaring inflation has
forced them, along with other generations of Americans,
In this article, I'll explain how the money mindset of Gen to learn to save and scrimp.
Zers differs from that of preceding generations and what
that means for financial service providers. Young adults can easily be cheap with certain necessities
that don't mean much to them. They also enjoy thrifting,
1. They pay for goods and services differently and they know how to take care of their belongings so that
Gen Z is up to three times more likely to use payment they last longer. However they will splurge on things that
apps, in-game currencies and other alternative payment matter the most such as a concert featuring their favorite
methods than older generations. The young adults in this band, the best food for their pets, luxury skincare, high-
group who prefer digital methods expect the process to be quality home goods, or tickets to a Broadway show—and
almost immediate. That's why payment providers started they don't even think about how much it will cost (see
removing any additional steps during the transaction http://tinyurl.com/2p89cwpw).
experience.
As a result, companies started emphasizing the quality of
However, that does not mean that Gen Zers are entirely their products and the long-term benefits of their services.
online. In fact, cash usage is also on the rise when it comes Get to know Gen Z
to this generation. Nearly a quarter of young adults use
cash for most of their purchases, as they believe that would Gen Z is now the largest generational group in the United
help them keep better track of their spending habits, States. By flexing their spending power, they are quickly
according to Credit Karma (see http://tinyurl.com/2dkazn2u). changing the world of finance.

This generation tends to stick with their preferred form This generation values simple buying experiences,
of payment. If such a method is not available, a Gen Zer transparency, authenticity and quality. Though Gen Zers
would be twice as likely to delay the purchase instead of are young, they have already been through a lot: the
using an alternative payment method. For this reason, aftermath of 9/11, the financial crisis of 2008, the pandemic,
many businesses started offering a wide range of payment and the current inflation surge. These events have shaped
options. them into a purposeful, pragmatic generation of digital
natives who prefer to splurge only on the things that truly
2. They value other things make them happy.
EY researchers found that over 50 percent of Gen Z Chad Otar is CEO of Lending Valley Inc. For information about the
respondents admitted that environmental, social and company, please visit www.lendingvalley.com. To reach Chad, send an
governance factors are important for them when choosing email to chad@lendingvalley.com.

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