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M REPORT | 51 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Highlights: • Gen Z's top three priorities for the year ahead include furthering their education (40%), advancing their career/ salary (32%), and getting a new job (31%). These priorities are followed closely by saving for retirement (25%), traveling (24%), buying a car (22%), and building good credit (20%). • Gen Z is more likely than oth- er generations to cite the desire to comfortably afford material items (45%) as a motivator to achieving financial success (vs. 34% of millennials, 30% of Gen X, and 30% of boomers). • More than half (56%) of Gen Z say discipline is a key trait to achieving financial success, with other important traits and characteristics being financial savvy (37%), organization (35%), motivation (34%), self-awareness (29%), frugality (20%), and confi- dence (20%). • Today, two-thirds (66%) are actively saving for financial goals and, despite the current environment, 58% are optimistic about their financial futures. Much of Gen Z has the finan- cial basics down, though they struggle with more complex top- ics such as investing and debt. • Gen Z feels equipped to handle basic financial tasks, includ- ing budgeting (71%), managing day-to-day expenses (70%), and building/managing credit (65%). However, preparedness levels decrease significantly when it comes to the future and more complex topics, including building an emergency fund (54%), saving for retirement (43%), and investing (29%). • Nearly 40% have no invest- ments, and of those, the top reasons for not investing include having no additional funds to spare (44%), not know- ing where to start (31%), and feeling investing is too risky (23%). The federal student loan freeze has brought some relief. • Nearly half (47%) of Gen Z al- ready carry some form of debt, including through credit cards and student loans. • They have found that the federal student loan freeze has brought them some relief. Among those with student loans, 41% say the freeze al- lowed them to maintain their current standard of living, 23% say it allowed them to con- tribute more to their savings, and 21% say they've been able to continue paying down their loan without collecting interest. Demographic Spotlights Research also explored how race and gender may influence financial priorities and challenges, including the racial wealth gap. Reflecting on the last five years, about two-in-five Black/African American (41%) and Hispanic (42%) Gen Zers say some or significant progress has been made to close the racial wealth gap, while others in these groups say no progress has been made (both 30%). Looking to the next five years, about half of Black/African American (47%) and Hispanic (54%) Gen Z believe some or significant progress will be made to close the gap, while others say no progress will be made (28% and 24%, respectively). Additional findings include: Black/African American Gen Z is paving the way toward finan- cial independence and embracing a hustle culture, though barriers persist around debt and saving. • Sixty percent of Black/African American Gen Z identify as mostly or fully financially in- dependent—more so than their non-Black/African American peers (45%). • Eighty percent are currently/ considering taking routes to earn supplemental income— more so than their non-Black/ African American peers—in- cluding taking on a second job (35% vs. 25%). • They are three times as likely to prioritize starting or grow- ing a business in the year ahead compared to non-Black/ African American Gen Z (15% vs. 5%). • Black/African American Gen Z is nearly twice as likely to say they currently invest or are considering investing in crypto- currencies than non-Black/ African American Gen Z (22% vs. 12%). • While Black/African American Gen Z is more likely to have debt than their counterparts (60% vs. 44%), this is down from 70% year over year. • This community is more likely to cite taking on too much student loan and/or credit card debt as their biggest financial regret (30% vs. 17%). • Forty percent contributed to their savings over the last year (vs. 56% of non-Black/African American Gen Z). However, two-thirds (67%) don't have enough emergency savings to cover three months of expens- es—with one-third (32%) of all Black/African American Gen Z citing not having an emergency fund as their biggest financial regret. Gen Z women's financial lit- eracy gaps and lack of investing, relative to men, may negatively impact their near- and long-term financial wellness. • Gen Z women and men feel equally equipped to build/main- tain credit (64% vs. 66%) and stick to a budget (69% vs. 73%). • However, Gen Z women feel less equipped to manage day- to-day expenses (63% vs. 76%) and to build an emergency fund (48% vs. 61%). Just 38% of Gen Z women have enough emergency savings to last three months, compared to 48% of Gen Z men. • In terms of longer-term plan- ning and investing, Gen Z women's financial knowledge has them feeling less equipped than Gen Z men to save for retirement (37% vs. 49%) and to invest (22% vs. 35%). • Today, 41% of Gen Z women have not yet begun investing, compared to 34% of men, and are less likely to even be con- sidering individual investments (36% vs. 47%) or retirement savings vehicles such as a 401(k) (39% vs. 46%). "We recognize the unique financial needs across diverse and historically underserved communities," Channels said. "The insights from this annual research help to inform how we tailor resources and guidance to empower the next generation as they embark on their financial journeys. Last year, for instance, we developed a Gen Z financial guide based on insights into the priorities, preferences, and challenges of this growing client segment." Gen Z women's financial literacy gaps and lack of investing, relative to men, may negatively impact their near and long-term financial wellness.