Africa-Press – Namibia. Younger generations generally seem to exhibit more positive money behaviour than older ones.
Financial confidence can mean different things to different people, but Sanlam defines it as a level of assurance and belief in your ability to manage and navigate your financial life effectively.
According to the Sanlam Financial Confidence Index, zennials – Generation Z and millennials, born between 1992 and 2002 – show higher levels of financial confidence than Generation Xers and boomers.
Sanam Naran, a registered psychologist, says social media plays a big role, offering succinct and engaging finance-related content.
“Additionally, money is no longer such a taboo topic; families and friends may be more open to discussing finances, fostering a healthy and informed dialogue,” she says.
Mavis Mazhura, a behavioural finance expert, explains some of the positive money patterns younger generations are showing.
Increased financial literacy: United States research indicates that 73% of millennials and 55% of Gen Zers grew up in families that discussed money, compared with 41% of baby boomers.
Mazhura says open conversations about money can improve financial literacy in younger generations.
According to Sanlam, the ‘f-word’ could well be ‘finances’ given the reluctance of older generations to discuss finances openly.
“We need to keep normalising discussing the ‘f-word’ as in finances at home,” Mazhura says.
The digital divide: As digital natives, members of Gen Z, also known as zoomers, leverage technology to manage their finances effectively.
Mazhura says their entrepreneurial spirit and access to diverse role models through social media further bolster their self-assurance and drive.
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