More and more Gen Z individuals are placing a strong emphasis on achieving financial security and actively planning for the years ahead. This trend reflects a growing awareness among this generation regarding the importance of saving money for future goals such as home ownership, higher education, vacation getaways, and retirement.

According to a survey conducted in January 2025 by Talker Research, Gen Z has distinguished itself by saving more money than any previous generation.¹ The findings are particularly noteworthy: 21 percent of Gen Z respondents report saving between 1 and 10 percent of their monthly income, while 25 percent save between 11 and 20 percent.²

So, if you want ideas on tried-and-true ways to save money, keep reading. 

1. Establish a budget and stick to it

Gen Zers like yourself commonly spend discretionary income on things like entertainment, health and wellness, fashion, technology, dining out, and pet care. However, without a budget, it can become challenging to monitor these expenditures and understand where your hard-earned money is going. The good news? You can create a realistic budget quickly and easily.

There are many different budget apps, templates, and worksheets to choose from, including Ameris Bank’s free financial calculators. You just need to enter your income, fixed expenses (e.g., rent, health insurance, streaming memberships), variable expenses (e.g., groceries, gas, dining out), and debt (credit card debt, student loan debt) into their respective line items. You can then see how much you spend each month and think of ways to save.

The 50/30/20 rule is a popular budgeting method. It involves allocating 50% of your post-tax income to needs (necessary purchases), 30% to wants (discretionary purchases), and 20% to savings. Once you create a budget using this or another method, be sure to stick to it.

2. Keep debt to a minimum

Dealing with excess debt can be one of the most frustrating experiences, especially for Gen Zers, who may already be facing unique financial challenges. The pressures of student loans and rising living costs can feel overwhelming. It is essential to keep your debt at a level that is manageable—this means ensuring that your monthly payments fit comfortably within your budget and do not lead to financial stress. Some real-world strategies to address debt include the following:
 

• Pay more than the minimum payment on your credit card
• Set up automatic payments with your bank
• Keep your credit card balances low
• Limit new credit account applications
• Limit your discretionary spending
• Consolidate multiple loans into one new loan
• Contact your bank for financial counseling and advice

3. Start saving money early

One notable advantage of being a Gen Zer is the extended timeframe available for saving. Because of your age, you have the unique opportunity to start saving money now and watching it grow with compound interest. Moreover, this early start can provide a cushion for unforeseen expenses, help you pursue higher education without overwhelming debt, or even help you enter the housing market sooner.

Some ways to save money include making regular deposits into a bank savings account and opening a traditional or a Roth Individual Retirement Account (IRA) through your bank. Even small contributions to your savings account and IRA can lead to substantial growth in the years ahead.

4. Create an emergency fund

Gen Zers face distinct financial challenges similar to those of millennials and Gen Xers. Unexpected medical or dental expenses, costly automobile repairs, pet healthcare bills, and sudden job loss can occur with little or no warning. While earlier generations might have a bigger nest egg to fall back on due to having more years to save, Gen Zers might struggle to cover costs. That's why it's so essential to establish an emergency fund at an early age.

Opening a separate savings account is an effective way to build an emergency fund. This allows you to avoid withdrawing money for non-essential expenses and purchases. Every Gen Zer's income and financial situation are unique, but a good rule of thumb is to save between three- and six-months’ worth of living expenses.

5. Use credit cards wisely

Digital-first shopping experiences are preferred by most Gen Zers, who enjoy the speed and convenience of buying things online and via mobile apps. Gen Zers also appreciate the ease of swiping a card over carrying cash; they use credit cards when shopping in person, dining out, or grabbing a quick coffee. Although credit cards are convenient, their balances can accumulate quickly, as can the interest payments.

Whether you have one or several credit cards, use them wisely. Responsible credit card management helps you maintain a good credit score and prevents debt accumulation. Always be mindful of your credit card limits, make your credit card payments on time, and pay down your balances to minimize interest charges.6. Improve your financial literacy

6. Improve your financial literacy

Gen Z is the first generation to use technology while growing up—computers, tablets, smartphones, and the Internet. As a Gen Zer, you have a wealth of financial information readily available at your fingertips— information your parents did not have when they were young. However, understanding the ins and outs of personal finance can still be challenging. If you want to improve your financial literacy, here are some ideas worth considering:
 

• Read personal finance books
• Listen to popular financial podcasts
• Subscribe to personal finance newsletters
• Contact your bank and speak to a financial professional
• Seek guidance and advice from your parents

By immersing yourself in these resources, you can develop a stronger understanding of basic financial principles, enabling you to make better decisions regarding your financial future.7. Stay on top of fraud trends

7. Stay on top of fraud trends

Gen Zers are tech-savvy; they frequently use multiple technology devices and apps and are active on social media. This deep immersion in the online world makes Gen Zers popular targets for online fraudsters, who exploit their familiarity with technology and social media to craft a number of scams. Staying on top of fraud trends and following best practices is essential to protect yourself from personal and financial fraud.

Regularly educating yourself on common schemes, such as phishing (scam emails, text messages, or phone calls), credit card scams, fraudulent job posts, bogus "for sale" ads, and deceptive social media ads, will empower you to recognize warning signs.

8. Think long-term

As a Gen Zer, you have the unique advantage of having many years ahead of you to build your financial future. However, this advantage shouldn't lead to complacency. Adopting a long-term perspective when it comes to financial planning is beneficial, even at a young age.

By integrating smart financial practices into your daily life now, you can set the foundation for lasting stability and growth. Taking proactive steps today can lead to a more secure and prosperous tomorrow.



Source:
^1,2 https://www.newsweek.com/gen-z-saving-more-money-other-generations-2023545

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank does not endorse nor is affiliated with the companies listed in this article.