Economic commentator Kyla Scanlon is noting a potentially worrying trend in the investment outlook of younger generations.
“The world is divided,” she said on CNBC’s “ETF Edge” this week.
Scanlon, 26, who rose to prominence through social media videos about the markets and the economy, explained why some members of Gen Z save aggressively for milestones like retirement, while others take a much more lax approach .
“There are people who are maxing out their 401(k)s. They’re doing everything they can to plan for retirement,” she said. “But another aspect is an element of financial nihilism, which is people don’t want to save for retirement. They don’t want to save money in general because they don’t believe the future is there.”
Scanlon aims to bridge the divided financial attitudes of Generation Z with her new book, “In This Economy? How Money and Markets Really Work.”
“Financial education will always be an uphill battle because money is such a personal topic, but it’s important to give people the tools they need to start somewhere,” she said.
She cites the housing market as a prime example of young people falling behind. According to a recent report from the National Association of Realtors, Gen Z will only make up 3% of all homebuyers in 2023. Interest rates have risen, according to Scanlon statistics.
“Younger generations definitely want (homeownership) because there are a lot of financial benefits to having equity,” she said. “People are trying to figure out how to do this financially right now given where mortgage rates are, where home prices are, etc. It’s difficult.”
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