Gen Zers and Millennials are making their financial well-being a priority after a year of high inflation and fluctuating interest rates. A recent survey by Fidelity revealed 75% of Gen Zers and Millennials included financial goals in their New Year’s resolutions vs. 53% of Baby Boomers. 

Here are three key financial trends Gen Z and Millennials are prioritizing this year.

Saving Money

According to a survey by American Express, 60% of both Gen Z and Millennials have made saving money their top priority for the new year. Building savings and having an emergency fund is crucial to avoid unexpected debt and achieve financial stability. One recommended strategy for saving money is to use a high-yield savings account like a time deposit or liquid savings. High-yield savings accounts allow your money to grow over time through accumulated interest.

Paying Off Debt

Second to creating an emergency fund, the same survey revealed 42% of Gen Z and Millennials want to pay down their debt. High-interest rates have made borrowing money and credit card usage expensive, so debt repayment is a smart idea for long-term savings. The snowball method is one commonly used repayment strategy where you prioritize tackling your smallest debt balance before moving on to larger ones. The idea behind the snowball method is paying off smaller debts frees up money to pay off bigger debts.

Creating a Realistic Budget

Gen Z and Millennials’ third financial goal is to create and stick to a budget. A realistic budget can help you achieve important financial goals like buying a home or saving for retirement. Creating a sustainable budget depends on your income and expenses, which means you should pick and choose what’s right for your saving goals. The 50/20/30 rule, however, is a helpful strategy to consider. This is when you allocate 50% of your budget toward your necessary expenses, 30% toward your wants, and 20% toward savings. Additionally, a cash-only budget is another trick to help limit unnecessary spending.

By setting yourself up for financial success, you are laying the foundation for a better future. You can find more budgeting and saving tips at

“This page may contain links to external websites. These links are displayed for your convenience. FirstBank does not manage these sites and assumes no responsibility for the content, links, privacy policy, or security policy.”