Gen Z wants to Save $: Lessons from #AmericaSavesWeek

Times are changing! It was an exciting #AmericaSavesWeek Feb 27-March 4 and much was learned. Check your socials for #ASW17 or #ASW2017 for loads of financial wisdom and motivation from a variety of institutions. If you ever wonder if it’s making an impact, remember a new generation “Gen-Z” grew up in the “Financial Crises” era with a different view  of money not seen since the Great Depression, so get ready to roll out even more financial literacy content to support their goals and share prosperity!

A study from the Gild featured on Marcomm.com explains:

“Yet Gen Z were shown to be a generation of savers having grown up post-financial crash, with 25% saying they would rather save for the future than spend money they don’t have and 22% saying they never spend on “unnecessary, frivolous things” because saving is so important. These attitudes were shared with the Silent Generation, with 43% and 25% of respectively.”

The study also notes that this is a generation that grew up with the internet and is accustomed to information being made available quickly on any modern device. It’s a long way from the dial-up modem days!

Feel old yet? THINK AGAIN! Traditional institutions like banks, credit unions, educational non-profits and 529 providers are in position to grow using a combination of new technology and time tested wisdom already present in your culture.  Technology is more socialized with Gen Z to where expectations for simple online tools has grown. They have goals and want to move forward. Will your organization help or hinder this process? Here’s a few ideas:

What is your narrative? Even if you think your organization doesn’t have one, or maybe it’s to “maximize shareholder value” (No small feat), your group’s goals are a piece of the greater story Gen-Z is living through.  Are you helping them get where they want to be? If the answer is a resounding “YES” then stick to it and continue to empower Gen-Z with your traditions adapted up to new technology.  Yes, you can promote financial literacy to a new generation of savvy savers and they want to engage your organization to do so!

Your content can provide both sides of the story: Let’s face it, it’s a noisy environment on social media. There appears to be a storm in every news cycle, and the cycles are happening faster than ever!   The good news is your organization does not need to pick sides on hot media topics (Education, Healthcare, Government are astoundingly media driven at times), it just needs to know both sides of the story.  If you are sticking with a principled narrative, you help people guide themselves through any situation using your concepts and ideas. Gen Z is very aware that a single story may be interpreted in many different ways, so instead of pushing an agenda, keep it simple and show both sides of the story while promoting honest dialogue.  Keep your comments section open to allow different views to participate and communicate perspective on your content.

Help with decision making first: There’s a lot of options! We’ve learned this first hand at Invite Education with software covering the financial variables related to college attendance. With over 4,000 institutions of higher learning plus a huge scholarship database, the best thing we can do is provide transparency and financial literacy fundamentals to help families make smart decisions.  We realize there is no perfect “one way” for everyone, so we take a “Consumer Reports” approach to the question of college choice.  This way anyone can use the resources and find what they need.  Just let people make their own personal decisions with your organization’s assistance.  This is far removed from the days of pushing product first on radio or tv.  It’s about targeting the goals of your audience first and providing value with products/services supporting those goals featured second.  Gen-Z is ready to move their life forward, are you ready to help?

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How “The Rule of 70” Doubles your Savings

What is the “Rule of 70”?: This classic financial literacy concept provides vision for investors planning for college savings. (Also known as the Rule of 72)

At Invite Education, we help families apply that concept towards college planning everyday.

It’s simple: You can figure out how many years it will take for money to double based on a rate of return.

Take the number 70 and divide it by a growth rate.

Let’s try with an investment rate of return @ 7%.

70 divided by 7 = 10

10 is the number of years it would take for the investment to double.

So for example, a $10,000 investment would double to $20,000 in ten years at a 7% annual growth rate.  Simple enough.

Yet for most families in the daily grind, this concept is easily missed.  Especially during critical early years on an 18 year horizon to college.

Engage customers with simple solutions to complex college problems: Join our Demo

What we’ve learned:

Life moves fast while college planning remains methodical:  Consistency is key when distractions become the norm.  Providing your customers the means to achieve this defines superior engagement for financial services content.

There’s no time like the present, or the future: The power of compounding interest allows small investments to grow long term.  It turns out that it’s cheaper to save long term than to borrow later for college costs.

Your customers “most thoughtful” data; their child’s academic and financial future:  Higher education is high on the list for families with children.  We recognize the challenges, the benefits and most important the emotions that move families towards making smart college choices.  Isn’t it time to give your customers a better college planning experience?

The logical path: Once school choices are targeted, give customers the ability to plan step-by-step a clear path to college success while helping them recognize and compare choices based on costs and benefits.

Engage and deliver results with your organization’s products and services:  Your product suite may be excellent, but until engagement begins with the customer’s mind space about the topic the competition will instead pick up business.  Everyday more people search for solutions online to find answers to their most pressing college questions.  If you have products or services targeted towards that group, give them a platform that answers all the questions they have and collects an email address for targeted follow-up.  It’s just that simple.

Are you ready to Invite Education?

Schedule your Invite Education Demo: