The pressure Gen Z Is feeling is real

Today’s unease isn’t imagined, Thiegs said. Gen Z has come of age amid a pandemic, market volatility, geopolitical shocks and rising expenses. And traditional wealth‑building milestones, like buying a first home, are often arriving later in life.

“Uncertainty can sometimes paralyze people into not taking action,” said Thiegs. “But inaction is the real risk.”

Thiegs said there are three areas within people’s control where they can take action today: Spending, saving and investing.

Spending: Awareness before perfection

Budgeting can seem overwhelming to some, he said.

“Let’s face it, most people don’t love budgeting,” Thiegs said.

When Thiegs thinks about tackling a budget, he said a Lao Tzu proverb comes to mind: “The journey of a thousand miles begins with a single step.” This timeless wisdom highlights that even the most difficult projects require a small, manageable first effort.

Rather than working through a detailed, line-by-line budget, Thiegs suggested easing into it with awareness. Take a look at paystubs, bank and credit card statements to get a ballpark figure of what’s coming in and what’s going out. Once you have a general awareness of your cash flow, start layering in the categories of spending, such as rent, food and utilities.

Many banking apps offer budgeting tools, and there are online tools that can help you get started.

Saving: Start where you are, but just start

Balancing day-to-day bill-paying responsibilities with building a savings habit can be a challenge for some. Like budgeting, Thiegs suggests that people ease into the practice of regular saving.

If you’re saving for a goal – say, a new car – he recommends estimating the cost of that item and then dividing that figure by the number of months you have to save. For example, if you want to make a $6,000 downpayment in two years, you’d want to save $250 each month to reach that goal. That monthly target becomes a compass.

“Some months you’ll hit it, some months you won’t,” he said. “What matters is knowing whether you’re on track or off. Instead of asking, ‘Will I ever afford this?’ the question becomes, ‘Am I moving closer this month?’ That shift replaces anxiety with agency.”

There are many digital tools that can be helpful, he said, such as banking apps that allow you to set up a recurring transfer from your checking account to your savings account, on paydays for instance.

Investing: Time is the secret ingredient

When it comes to investing for long-term goals like retirement, one of the most powerful advantages Gen Z has is time, Thiegs said. Retirement can feel impossibly distant to someone in their 20s. But distance is exactly what makes it powerful.

“The number of years you allow your money to grow often has more influence than the amount you put into it,” he said.

Getting started with investing is easier than ever, Thiegs said. Many people have access to retirement plans like 401(k)s at their workplace, which enable contributions with every paycheck. If you don’t have access to an employer-sponsored plan, there are other options to consider, which you could similarly set up with automatic contributions each pay period, in some cases.

“Starting small — and starting early — can change the entire arc of your financial future,” Thiegs said.

Why guidance matters

The U.S. Bank survey found one group that consistently reports feeling a bit more grounded: those who’ve worked with a financial advisor or have a financial plan in place. They’re not necessarily earning more or facing fewer challenges, but they tend to approach financial stress with more confidence and clarity.

Thiegs pointed out that the benefits of financial advisors are not just for the wealthy.

“Financial advisors can provide perspective, education and reassurance even before young people have significant assets,” he said.

Many financial institutions offer services tailored for those who are just beginning to invest, including the option to work with an advisor or team of advisors.

Thiegs also encourages young clients to build a basic financial plan.

“The future will always carry uncertainty,” Thiegs said. “Confidence grows not from controlling outcomes, but from controlling your actions.”

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