Financial future safeguarding is a vital consideration for Gen-Z and younger. This is because, as time has gone on, society has become less and less focussed on saving money and financially preparing for old age. Gen-Z and younger aren’t being taught to prioritise this rather than spending. If you want tips on how you can safeguard your financial future in 2025, here’s all the tips you need.
A survey was conducted by Moneyplus Advice which explores the generational gap in finances. How Gen-Z and younger are dealing with their finances and dealing with debt is very different to older generations.
Why do Gen-Z and younger need to practice financial future safeguarding?
The Moneyplus Advice survey shows that future financial security is no longer seen as the reward it once was. Having a long, structured career with regular savings and a pension pot is overlooked by these younger generations in favour of living in the moment and enjoying life currently. Gen-Z feel the most pressure to overspend. This is due to the influences of social media. 52.25% of Gen-Z feel this pressure to overspend from social media. For example, on increasingly extravagent hen and stag dos, and on designer purchases.
They are more likely to spend beyond their means on things such as holidays. In order to fit in with what they see online. 46.55% of Gen-Z and of 51.35% Milennials surveyed have used Klarna/BNPL services to pay for holidays. As opposed to just 32.93% of the older Gen-Xs.
Only 60.8% of Gen-Z have an emergency fund to safeguard their financial futures.
Tips for Safeguarding Your Financial Future
1. Savings
As younger generations continue to favour freelance careers, they aren’t building up a pension pot unless they make a decision to do so of their own accord. If you don’t have a pension that you regularly contribute to, it’s important that you save regularly to make sure that you are preparing well for your financial future.
2. Avoid Debt
It’s important to spend within your means and not use Buy Now Pay Later Services or credit cards wherever possible. If a purchase this way is necessary, it’s important to put a strict payment plan in place immediately, so that you are reducing that debt as soon as possible.
3. Re-assess Your Priorities
The younger generations are living their lives online and are tempted to overspend to match their friends or fit with new societal norms. If you cannot afford something without going into debt or your savings, it’s important to speak up. If you’ve been asked on an extravagant hen weekend in Paris, but can’t afford it or want to use that money for something more important, say so and don’t feel pressured.
4. Avoid Temptation
If you have managed to build up some savings, lock these away in things like 1-year fixed term ISAs to stop you dipping into them and spending. You’ll make some good interest too, that you an re-invest at the end of the year.
Whether you are managing finances for couples or just yourself, it’s important to avoid the key money mistakes in your 20s that people often make.
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