The coronavirus pandemic, which has taken the entire world by a storm, is probably the first major global event affecting Gen Z all over.
Gen Z, or Generation Z, includes anyone born between 1996 and 2010. Some of these people have recently gotten their driving licenses, voting rights, and maybe even a job!
Their parents have lived through the economic crash of 2008; they have lived through 9/11 and have seen all global events that have made the geo-political world that it is today. Gen Z’s grandparents, the boomers, have probably lived through the defining times in history, which includes two World Wars and many other battles.
The pandemic caught everyone off guard. People were suddenly told to stay home in lockdown for an indefinite period. It was particularly difficult for this generation who relies heavily on going out of their homes, networking, and just going out there and making life work.
A global health emergency crisis like this one is the first time Gen Z has had to face everything from inconvenience to loss of freedom. Before this, all was well for this class of citizens. They were either about to graduate from college or start working.
Setback for Gen Z
Many people of this age bracket who were about to begin their careers found companies rescind the offers of employment on account of coronavirus. Many were also laid off in the process. The entrepreneur strata of this group were also hit heavily.
But this generation sure knows how to fight.
Perhaps that is what separates Gen Z from many other generations and makes them who they are—strong, powerful, and ready to fight back.
This is why Gen Z needs to take their money matters seriously before it’s too late. It’s now or never.
Some people start investing as soon as they get a job. Wise are those who teach investing habits much before that. Smart investments can help make life later on more comfortable, but can also teach people how to handle their money.
Read on to know to find how you can invest smartly; even small amounts of money can help during a pandemic. Also, investing is the new cool—it’s no longer an ‘old people thing.’
1. Educate Yourself
Follow the adage that ‘learning never stops’ and dive into the world of financial education. Financial literacy is probably the best gift you can give yourself during this pandemic. If you are locked down, all the better, because you will have something constructive to do.
Start educating yourself about your taxes, and the banking system in general. Move onto subjects like trade, equities, mutual funds, insurance policies, and the likes. These will help you invest your money in the right place and bless you with financial literacy—which is gold. Not to mention, you’ll gain some killer money managing skills.
2. Take Conservative Routes With Your Finances
Generation Z has probably learned one thing from their parents: to put their money in conservative investments. Conservative investments like cash investments, savings accounts, bonds, and mutual funds are low risk and have a high return potential. If you are a novice to investing, conservative finances are the way to go to make sure that your money remains safe while it grows.
In a situation such as the current situation, it is better to clutch your money and keep it with you for emergency purposes. Conservative investments allow you to do so while giving you good returns at the same time.
3. Invest in Stocks
If you’ve been working for some time and have some money stashed away, use it now. Start small, nothing big. The market is volatile right now, just like how it was during the crash of 2008. Some people who invested during that time made millions in some time. While the market is still recovering, now may be the best time to jump into it.
Remember to educate yourself about the market before venturing into it. Also, it is advisable to take a specialist’s help while investing in stocks.
4. Believe in the Power of SIPs
When people say that SIPs worked for them, believe them—it’s true.
Systematic Investment Plans are specially crafted for the people of the 21st century and rightly so! It’s a no-brainer that the money you save should be invested correctly to give you high returns. A SIP enables this. You can choose whatever amount you want to spend at a particular time—there is no fixed amount of time for it.
When you invest in SIPs, you buy mutual funds at different Net Asset Value (NAV). In the next run, the dollar average gives you a higher return. SIPs are termed ‘wealth-builders’ for the very same reason.
Gen Z should be encouraged to invest in SIPs regularly, and a disciplined investment habit will eventually be formed. While it may not be the best of the times right now, it is advised that you regularly invest in SIPs, no matter how small the investment.
5. Set Up a Retirement Fund
If you are in your 20s and you are reading this—no, you are not old. It is a myth that there is a “right time” to start a retirement fund. A myth like this also sheds light on the poor financial knowledge that this generation has.
Setting up a retirement fund has nothing to do with age. Let’s agree on one thing—life is not going to get easier as you grow older. So it’s better to put money away in a fund for a happy, senile life. And given the unprecedented and uncertain times that we live in, a retirement fund will only make your problems more manageable.
The coronavirus pandemic may have taken a toll on everyone’s financial planning; keeping your investments steady is the sanest thing. It may not seem easy right now but will pay off in the years to come, especially if you opt to insure your health one way or the other. While Generation Z might be one of the worst affected during this pandemic due to their uncertainty in their career growth, safe and sound investments can guarantee a prosperous future.
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Featured image: DepositPhotos © gunnar3000
