After focusing on baby boomers and then millennials, advisors have a vested interest in approaching Gen Z as well. A baby boomer advisor might struggle to navigate interactions with this younger generation. But don’t be intimidated by her, just approach the conversation with the right information, Recommends Advisorpedia.
Generation Z is not that different from the others. Its members also have hopes, dreams and goals. However, the latter differ somewhat from those of previous generations.
This group is generally optimistic, says Advisorpedia, which means a lot since many were there during the 2008 financial crisis and, obviously, during the bear market due to COVID-19.
Many of them want to learn more about investing and get involved in personal finance topics. As a result, they are more receptive to structured advice that financial advisors and planners could offer.
A highly analytical and realistic advisor should consider softening their approach when dealing with Gen Z, Advisorpedia suggests. This generation is not closed to facts, but a catastrophic approach will not resonate with its members.
Another factor to consider is that reducing their debt is a very important goal for Gen Z, who are often still struggling with student debt. An advisor must, therefore, have the data and strategies to help their potential clients achieve their debt elimination goals from the outset.
Another fact to consider is that this generation is generally confident in its investment capabilities, but aspires to more education. Advisors should therefore objectively assess the financial understanding of their young clients when developing plans.
Advisors who keep this in mind and are determined to guide members of this generation to the right mental place when it comes to investing will certainly be more successful with this generation.
