By Claire Moraa
- Young women are becoming mindful of their spending to prepare for tough economic times
- 73% of Gen Zs have adjusted their lifestyles due to economic pressures
We’re living in unprecedent times and young women know this all too well. Financial success is slowly slipping away from the hands of the young generation and instead of enjoying now, they have been forced to savor for tough times ahead. In fact, 73% of Gen Zs admit to adjust their spending habits downwards due to the high inflation rate and if this isn’t a recession indicator, I don’t know what is.
Why This Matters: The younger generation particularly women are known to be big spenders. They’ve just finished school and on their first jobs without too many responsibilities. Their earnings are therefore dedicated to having a good time–eating out, shopping for clothes and beauty products and generally spending on self care. That’s not the reality of a lot of young women now as they’re forced to DIY some old clothes to remain fashionable and turn to ChatGPT for free therapy. But why is it different for the young women of today compared to those from a few decades ago?
Granted, the economic landscape is not the same as before. However, women are at a disadvantage because at least 44.3% of them graduate with a higher student debt compared to their male counterparts who stand at 37.4%. Their road to homeownership is also less attainable and with the unpredictable job market and income inequalities, the creeping financial insecurity forces these young women to make more deliberate moves to future-proof their financial futures. You are therefore likely to see mindful spending, diversification of income, early investments and emergency savings from this demographic in the coming years.
What’s Next: The trend of recession-proofing lives among young women is not likely to die down any time soon. And if you look at it, it shouldn’t even if the reasons behind it are fear. Women should continue to strive for financial empowerment, career advancement, and long-term resilience in an ever-changing economic landscape. By embracing proactive financial strategies and seizing opportunities for growth and innovation, these women can shape a brighter, more secure future for themselves and contribute to a more equitable and empowered society.
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