Report offers insights into youngest cohort of adults’ finances
Canadians receiving tax refunds will have ideas of how to put the windfall to use and for the youngest adults this is likely to be a wise choice.
Counter to previous generations of young adults, Gen Zs are taking their financial security seriously with 76% of the cohort who are expecting a tax refund planning to invest it, well above older generations (60% of millennials and 48% of Gen Xers).
A new report from TD Wealth also reveals that 51% of Gen Zs have a TFSA, while 30% of those who don’t, lack knowledge of how they work.
Across all respondents, only 44% of respondents said they will use their tax refund to contribute to a TFSA and 31% will invest in their RRSP. However, 51% of those who do not have a TFSA say they cannot afford to contribute, 20% are confused about how they work, and 14% prefer other savings vehicles.
The importance of good financial management and planning by Gen Zs is also highlighted in a new report from US$400 billion AUM/A retirement solutions firm Corebridge Financial which ran an online poll among more than 2000 adults.
If found that 48% of Gen Zs spend at least three hours a month on financial planning, the same percentage as they spend planning their social calendar. Most of these spend 3-4 hours on each task.
When asked what age they got serious about financial and retirement planning, around three in ten Gen Zs said 18-21 years and a similar share said 22-25 years. For millennials, Gen Xers, and Boomers, 10% or less cited these ages. While 19% of Gen Zs said they haven’t yet got serious about financial and retirement planning, this was in line with the older generations.
Asked what got them serious about financial matters, earning a paycheque was the top response among Gen Zs (35%) followed by financial aspirations (32%), and nagging financial anxiety.
