Although Generation Z has positioned itself as one of the most open to talking about personal finances, it is also one of those that has had the hardest time supporting itself financially due to the high cost of living that exceeds salary growth, the few opportunities for job growth, and the inherited recessions.

This could lead to great frustration since you must learn to maintain the balance between prioritizing savings, paying services, basic goods, and affording some leisure time.

That's why here are some tips on how to avoid the most common financial mistakes.

Start by saving

Martin Lynch, president of the Financial Advisory Association of America (FCAA), advises young people to begin by prioritizing their savings. "The sooner you start, the easier it will be to retire. And fear not, Generation Z. If you start saving today, you can retire someday," he emphasized.

He also highlights that young people need to think about contributing to plans such as Roth, regular IRAs, or 401(k) plans.

Stop living paycheck to paycheck

According to Lynch, 60% of Generation Z lives paycheck to paycheck. "Everyone wants to earn more, but with the country's economy in a state of flux, it's time to make adjustments and live within their means," he said. In this case, it means creating a detailed and accurate budget and sticking to it.

Set Priorities

For Dennis Shirshikov, a finance professor at the City University of New York and director of growth and engineering at GrowthLimit, one of the financial problems that stands out for this generation is the uncontrolled increase in subscriptions. “Younger consumers, with just a tap of a finger, are accumulating streaming services, food delivery apps, and niche wellness platforms, and they don’t know their next renewal date until the next bank alert,” he expressed, which could be detrimental to their finances.