We all know the drill. Work hard, save money, and retire as early as possible. 🤑 After all, that's what the Boomers told us to do, right? Well, how's that workin' out for ya? 🙄 Many Millennials and Gen Z'ers are realizing that's way easier said than done, especially in this crazy economy. 🎪
The "soft saving" trend is all the rage amongst the younger generations and it's shaking up traditional views about money. 🏦 When you're a soft saver, you're more about spending in the present than saving it for later.
Here’s Five Fast Facts on soft saving:
- 😌 Cozy Culture - Gen Z (born between 1997 and 2010) is all about that "soft life," which is a cute term for the ultimate low-stress, comfy-cozy lifestyle. Zoomers are known to put experiences over saving for the future. A soft life puts personal growth and mental wellbeing at the top of the list.
- 🫂 For a Good Cause - A recent study found that Gen Z puts more money towards causes they believe in than older generations. They also want to buy from brands they have an emotional connection with.
- 🧘 Gen Zen - Three out of four Zoomers say they'd rather have a better quality of life than a bigger bank account. Breaking away from financial constraints is more important than working extra hours to pad their wallets. The youngest members of the workforce bring a balance between hustle culture and living in the present moment.
- 📉 The State of Savings - Data also shows Americans are saving less as a whole in 2023. The country's personal savings rate, which measures how much disposable income goes to savings, dipped to 3.4% this past September. That's much lower than the 8.5% average through the last ten years.
- 🛒 Spending Spree - Experts say the drop in savings is a rebound effect from the pandemic. Americans spent significantly less during the pandemic and some are spending more now to make up for lost time. Our friend inflation is also making it tougher for people to cover their bills and expenses, let alone boost their savings accounts.
🔥Bottom line: The soft saving trend might ruffle some feathers, but it can teach us to lighten up a bit. If you've been saving all your pennies for a rainy day, why not use a few to treat yourself every now and then? Your mental health will thank you. Even if you're the most financially-savvy Zoomer, make sure you're avoiding costly money mistakes. Stay smart and read up on those red flags in this trusty article.
Are you a soft saver?
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