Generation Z is leading the 'soft saving' trend, a new financial approach that prioritizes personal growth and mental wellness over aggressive saving goals.
3 in 4 of Gen Z would rather have a better quality of life than have extra money in their banks, a report by Intuit shows.For most people, their goal is to work hard, save money and retire early. But a "soft saving" trend is emerging among younger workers, challenging the traditional way of thinking.
They also seek emotional connection with brands and professionals they choose to engage with, Liz Koehler, head of advisor engagement for BlackRock's U.S. Wealth Advisory business told CNBC.Younger workers have a desire to break free from restrictive financial constraints. As younger people enter the workforce, they bring in new financial priorities and are more likely to embrace a "balance between the traditional '' to save every single penny and using some of their extra income to enjoy life now," Viktorin said.Retirement is the grand finale for most workers. However, more are concerned they may not be able to retire at all.with the lifestyle they want.
The study by Intuit found that millennials and Gen Z are more willing to spend on hobbies and make non-essential purchases compared to Gen X and boomers.