Does money buy happiness? For Gen Z, it just might
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(WSYR) – You’ve probably contemplated the age-old question once before: Does money buy happiness?
Although the responses to this question vary, financial health does have an impact on a person’s happiness, and this is especially true for Gen Z, according to a recent study by USA TODAY Blueprint.
The study found that 97% of Gen Z respondents said that financial health has an impact on their overall happiness.
The study also found that more than two thirds of Gen Zers are driven when it comes to financial plans and want to “actively work on 16 of 17 financial goal posts, including ones that likely involve taking out loans, despite the higher price of doing so.”
Gen Z also admitted that saving cash ranks as a higher priority than paying off debt. This issue becomes even more complex for Gen Z when it comes to their spending habits.
According to global integrated marketing agency, MG Empower, TikTok heavily influences Gen Z’s purchasing power because of what’s trending on the platform.
“With over 3 billion views, the #TikTokMadeMeBuyIt has become a global clasp for this generation to turn social media reviews into a tool to support them in spending money … and going after new releases,” stated MG Empower.
A study from the online vintage-resale platform ThredUp also found one in three Gen Z’ers admitted that they feel addicted to fast fashion due to online trends of what’s in or out. This has caused many Gen Z’ers to feel like they need to spend money on things like Shein, Stanley tumblers and Ugg slippers, to name a few.
In terms of Gen Z’s financial goals, the top goal for most is to pay off their student debt and save for their future children’s education, “including everything from covering the cost of tuition to the price of crayons.”
In the new year, more than 90 percent of Gen Zers have ranked financial soundness as vital, while physical and mental health wasn’t far behind. This is especially true for Gen Z as thinking about saving for their futures, paying off student debt and buying a home causes a lot of stress and contributes to their feelings of loneliness.
Although money might not buy happiness for most, for Gen Z, it might help them establish social and financial independence, which could also help with physical and mental health.