Why bother saving for retirement when the world is ending? The climate change crisis, sky-high inflation and political turmoil are driving some young people to spend for today instead of saving up for an uncertain future.
A recent survey found that nearly 75% of Gen Zers prefer higher quality of life than extra money in savings. Another revealed that 55% of people ages 18-35 have put saving for retirement on the back burner. Gen Z is also amassing credit card debt faster than any other age group.
"The younger we are, the more likely we are to be present-focused, versus future-focused, and the more likely we are to have, quite frankly, destructive beliefs around money," Brad Klontz, a financial psychologist, told Under the Radar.
Tremendous debt also helps explain this trend, according to local financial consultant, Kimberly Zimmerman Rand.
"Here in the Boston area where we have high housing costs and many people are entering the workforce with high student loans, there's more of an orientation towards today and less of an orientation towards tomorrow," she said.
Concern over climate change may also be fueling a more carefree relationship with money, and dire reports can validate those fears. Are young people simply responding rationally to turbulent times?
Klontz says this apocalyptic anxiety is common through the generations.
"I can only imagine what it must have been like to be living through World War II or the Great Depression, World War I, back when the Spanish flu pandemic was happening," he said. "I mean, I feel like there's just been a long history of feeling like the world is going to end during my life. ... You can enjoy today — and you should — but you should also be planning and saving for the future."
GUESTS
Brad Klontz, financial psychologist and Managing Principal of Your Mental Wealth Advisors
Kimberly Zimmerman Rand, principal at Dragonfly Financial Solutions LLC
