Finance for Gen Z

As a someone who grew up in the wave of technology, you know that technology has taken over every aspect of your life including your finances. It is common for young people to send money back and forth through applications such as Venmo, PayPal, Cash App and Zelle. However, are those programs safe?

• Venmo

  • It is owned by PayPal

  • It takes 1-3 business days to get your dough

  • You are spending more money than if you only had cash

• Is Venmo Safe?

  • Short answer? Yes, with family and friends.

  • Long answer? There are risks

  • Scams when transacting with strangers including false claims and reversed transactions

  • Non-payment from strangers for products or tickets you've sold or shipped to them

  • Lack of buyer and seller protection in cases of fraud or non-payment

• What about Zelle?

  • Owned by Big Banks: Bank of America, BB&T, Capital One, JPMorgan Chase, PNC Bank, US Bank, Wells Fargo

  • You get your money in minutes

  • You must have money to Zelle, therefore, it is SAFER!

Okay, so you got the money transfer application figured out, now what about Credit Cards? Here are the Fast and TRUE facts.

• The average person has 4 credit cards

• 78% of people are living paycheck to paycheck

• Credit cards give people a false sense of NOT living paycheck to paycheck

• There are 459,000,000 credit cards in circulation and only 327,000,000 people in America.

• 68% of people say they use their credit card on things they need but the most common type of card they sell you is the one used at Retail stores.

• Macy’s credit cards make up 40% of their business and they pay their employees for each credit card application they get.

• You do NOT need a credit card to buy a house.

• The process of manual underwriting is how you purchase a house without a credit score.

• Most of the time “free” airline miles will cost you more and leave you at a great inconvenience.

• There are 20 trillion unused airline miles

• 31% of people do not use their points and you still need to pay taxes and fees on your purchase!

• People spend up to 100% more using a credit card versus cash.

• A debit card is just as safe as a credit card

• Your credit score is not an indicator of wealth

• Your credit score is an “I love debt” score

What is DEBT?

• Debt By Definition

  1. Sin, Trespass

  2. Something Owned: Obligation

  3. A state of being under obligation to repay something or someone

• Debt Snowball

  • You buy one credit card

  • You get another credit card

  • You purchase a car

  • You have an unexpected medical emergency

What’s Next?

• An “Oh Crap” Fund

  1. Try to have some money at all times (10% of you earn)

     • Medical Emergency

     • Have to Travel

     • Your Best Friend’s Birthday You Forgot About

7 Straight Forward Take-Aways

1. Avoid Student Loan When Possible

   1. Scholarships

   2. Grants

   3. Pay Off Interest

2. Spend Less Than You Earn

   1. Figure out your needs and wants

   2. Decide how you can cut back each week

   3. Do you need a new pair of shoes or do you want a new pair of shoes

3. Create an Online Budget

   1. Use an online template

   2. Use your bank account

   3. Understand where you money is coming from and where it is going

   4. Self regulate and stick with your plan

4. Make a Plan to Tackle Debt

   1. Cut up credit cards

   2. Make minimum payments

   3. Do not find yourself in the debt snowball

5. Decide your Opinion on Credit Cards

   1. Do you need one?

   2. Do you need multiple?

   3. Do you know your credit score?

6. Create an Emergency Fund

   1. You never know when you'll need spare cash

7. Create Savings Goals

   1. Will your car break down?

   2. Will you be hospitalized?

   3. Will you have to stay in a hotel?