Generationb Z, the generation after the millennials, comprises individuals ages 9 to 24. The group's oldest members are just starting full-time and part-time careers after graduating from high school or college.
Whether they work full or part-time, they now have access to helpful information and opportunities to save for the future.
During the COVID-19 pandemic, Principal Financial Group evaluated attitudes around saving, and Gen- was found to be among the "super savers."
Over half (54%) indicated they had saved more than usual in the previous 18 months, while 43% said they had kept the same and only 3% claimed they had saved less.
Advice From The Silent Generation For Zoomers: Despite the fact that the younger generation believes they know everything, some advice from Berkshire Hathaway Inc. (NYSE: BRK-A) (BRK-B) CEO Warren Buffett recommendation should assist your transition into your 20s or 30s while staying financially secure.
Start saving now, and don’t look back.
The famed investor says, “Don't save what is left after spending; spend what is left after saving.” In other words, you must set aside some of your present earnings for the future if you want to become wealthy.
More Wisdom From Buffett: Here's an analogy Buffett wrote in a book titled “Getting There: A Book of Mentors.”
“Let’s say that I offer to buy you the car of your dreams. You can pick out any car that you want, and then when you get out of class this afternoon, that car will be waiting for you at home.”
There’s just one catch: “It’s the only car you’re ever going to get ... in your entire life. Now, knowing that, how are you going to treat that car?”
“You’re probably going to read the owner’s manual four times before you drive it; you’re going to keep it in the garage, protect it at all times, change the oil twice as often as necessary,” said the Oracle of Omaha. “If there’s the least little bit of rust, you’re going to get that fixed immediately, so it doesn’t spread — because you know it has to last you as long as you live.”
Here’s the punchline: The car is your mind and your body.
“You have only one mind and one body for the rest of your life,” he said. “If you aren’t taking care of them when you’re young, it’s like leaving that car out in hailstorms and letting rust eat away at it. If you don’t take care of your mind and body now, by the time you’re 40 or 50, you’ll be like a car that can’t go anywhere.”
The Last Word: Understanding the significance of that statement and using it as a guide can help students and young adults learn about the importance of health, investing, and mindfulness.
Buffett is the world’s fifth-richest person and CEO of one of the world’s most successful companies; it would be wise for the younger generation to consider his thoughts.
