Gen Zs Financial Problem

[Applause]

[Music]

do you have a nest egg

a nest egg is a sufficient amount of

money that you first earn

then save i started the foundation of my

nest egg when i was about six years old

and i joined a modeling agency in new

york city

my mom would take me out of school for

two hours at a time to do a photo shoot

i modeled for about four years and my

parents deposited all of my earnings

into a bank account and left it there

until the beginning of this year when i

decided that i wanted to invest some of

my money

i did a lot of research about the best

stocks terms

strategy software markets and how it all

works

while i was learning about investing i

came to the realization

that the way people are saving needs to

change

if and when you have a nest egg what

would you do with it would you put it in

a piggy bank or under the mattress

would you put it away in a conservative

bank account or

would you put the money into a risky

investment account or an asset that

gains value over time

it turns out that the way people have

managed their money has changed over the

years

and it needs to change even more for my

generation

while i was teaching myself about

finances i learned why it is so

important for my generation

to make money early by starting a nest

egg start actively saving their money

and perhaps most importantly educate

ourselves about finances in order to set

ourselves up for future financial

success

nowadays most people need more than one

income to support themselves a job alone

is not enough

during the beginning of covet 19 many

people lost their only job

which was their one source of income

they’ve since relied on whatever money

they can gather to help pay their

expenses

and the insufficient stimulus checks

that only came three times in america

nobody was safe during the pandemic

especially from the employment crisis

people from all acros across the globe

young and old

from all walks of life suddenly found

themselves wondering how they’d make

ends meet

even a rabbi from california zach

kamenetz felt the

effects of unemployment when his

synagogue announced cutbacks last april

that included his role if a man of faith

isn’t safe then who is

like those who are in dire financial

situations i realized how dangerous it

is to have one income and no savings

let me explain the savings and working

patterns of the

generations of my grandfather and father

the generation before baby boomers is

called the silent generation

it started in 1928 and is the generation

that my grandfather is in

the people in that generation were born

in and some grew up in a world of

economic crisis and war

despite the hardships of their parents

teenagers in the silent generation

didn’t have jobs but were able to

recover quickly and end up economically

sound

my dad who was in gen x started saving

towards the end of high school

he said that it was necessary to help

him with college expenses

so he could learn what it means to save

for the future

the importance of saving early became a

family tradition

but my family is not necessarily re

representative

of saving patterns across generations

some of the problems that my generation

gen z will be facing

have been seen before by millennials and

gen x the two generations before gen z

social class inequality also known as

the pay gap is a big problem that

millennials and gen x face right now

and gen z will be facing very soon

socioeconomic inequality is the

difference of wealth and opportunities

among the classes

from baby boomers to gen x the wealth

inequality drop was small and

proportional to the drops between other

generations

the drop from gen x to millennials on

the other hand was disproportionate

the difference in wealth between upper

and lower classes

is so large that wealthy millennials own

much more wealth and opportunities than

poor millennials

this chart shows the pay gap between the

top 0.1 percent of people

compared to the bottom 90 percent of the

population

as you can see we’ve climbed past the

levels of income inequality in the

gilded age

a time period when factory workers had

no rights no minimum wage

children worked in mines and high level

executives and politicians were corrupt

another problem that millennials have is

productivity and compensation of blue

collar workers

from 1979 to 2018 productivity rose 69.6

percent

meaning that the output of goods and

labor increased due to improved

technology

and increased worker efficiency pay

however for those workers only rose 11.6

percent

these two values should rise together at

the same rate when they separate like

they are now

more money goes to executives who do the

same work they’ve done for years

rather than the workers who increase

their productivity

both of these problems could continue

into my generation and are likely to be

worse

gen z needs to prepare and prevent what

happened to millennials from happening

to us

if we seek multiple income sources and

actively save now

everyone will be well versed in

financial security and we will

we will be much closer to

generation-wide financial stability

many people think that the whole

millennial generation is bad with money

but they started saving at an earlier

age in the generations before them

despite starting to stay safe earlier

they have much more debt

and their money has less influence than

it had for any other generation

millennials might not have more money

but is not their fault

they’ve been dealing with student loan

debt when college tuition on average

rose 37 percent

from 2008 to 2018 and minimum wage has

dropped significantly below inflation

lines

all signs suggest that for my generation

it will be worse

the rich will continue to get richer and

the poor will stay poor

those of us who are not in the top one

percent of american wealth

need to start using the tools available

to us the tools that the ultra wealthy

have used for years but nobody else knew

about

it is one of the only ways that we as

regular people

rather than the extremely wealthy will

combat this problem

i urge everyone my age to prepare for a

worse future economy

because as is true with all of life

economic struggles come quickly and

without much

warning from what i learned the best

tips i can give

is to start three different bank

accounts a basic risk-free savings

account with an amount of money that can

support you for a few months without

income

the second account is a tax-free

retirement account that can only be

accessed after the age of 65

and builds on itself over time since it

is opened

the third account is an investment

account that you can actively

actively manage or leave dormant for

years

another great way to take control of

your financial future

is with side hustles which have been

gaining popularity

my friend and i have a side hustle of

power washing driveways

we found a power washer on facebook

marketplace for free

replace the carburetor and now we use it

to make money on the weekends

side hustles can be anything that you

want and should just be a supplement to

your main income

finally a good starting point to begin

your economic growth is learning about

personal finance

i believe that personal finance should

be a high school graduation requirement

it could go a long way in helping many

of my generation avoid or lessen

financial difficulties over their

lifetime

in addition to learning on our own

through youtube books friends in any way

that we can

finances have become a big part of our

lives and should be taught in school

with information of this importance

education about personal finance

can save people from a world of debt and

significant financial problems

the more that we invest in ourselves in

the form of education and experience

the better returns on ourselves we will

have

i am in no way a financial advisor but

through hours of research and firsthand

experience

i’ve realized that many in my generation

will have trouble financially supporting

themselves

if we do not start now so take advantage

of what’s available to us through the

internet

and start building your nest egg thank

you