{"id":118425,"date":"2023-05-17T06:00:00","date_gmt":"2023-05-17T10:00:00","guid":{"rendered":"https:\/\/interac1.wpengine.com\/?post_type=content&p=118425"},"modified":"2025-05-30T19:03:40","modified_gmt":"2025-05-30T23:03:40","slug":"gen-z-anxiously-navigates-financial-firsts-and-shifts-everyday-spending-behaviour-amid-current-economic-conditions","status":"publish","type":"content","link":"https:\/\/stage.interac.ca\/en\/content\/news\/gen-z-anxiously-navigates-financial-firsts-and-shifts-everyday-spending-behaviour-amid-current-economic-conditions\/","title":{"rendered":"Gen Z anxiously navigates financial firsts and shifts everyday spending behaviour amid current economic conditions"},"content":{"rendered":"\n

Survey finds Gen Z want to improve their relationship with money and looks to a more mindful approach to financial advice <\/em><\/p>\n\n\n\n

TORONTO, May 17, 2023 \u2013 <\/strong>As Generation Z (Gen Z) enters the workforce and takes on financial \u2018firsts\u2019 like purchasing groceries, paying rent or saving for a vacation, new research commissioned by Interac Corp., suggests that Gen Zs are more likely to feel stressed (42 per cent), anxious (37 per cent) and overwhelmed (31 per cent) than any other generation when it comes to their financial situation. With this, Gen Z admits to leaning on debit to take charge of their finances. As a self-proclaimed debit-first generation, Gen Z is more likely (70 per cent) to frequently use debit, compared to 55 per cent of non Gen Z Canadians polled, as they adjust how they manage everyday spending.<\/p>\n\n\n\n

Nearly eight in ten Gen Z respondents agree inflation (78 per cent) and the cost of everyday essentials (75 per cent) are two external factors influencing their ability to manage finances. Canadians overall appear to be shifting their spending in response. Year-over-year, Interac transaction data shows an increase in the number of transactions with Interac <\/em>Debit at grocery stores and supermarkets as average basket sizes have decreased. This suggests consumers are transacting more frequently, with smaller basket sizes, perhaps to lessen budget strain. Likewise, discount merchants are seeing greater transaction growth than their premium counterparts, suggesting Canadians are shifting where and how they spend to stretch their dollars further.<\/p>\n\n\n\n

\u201cWhile we are seeing the economic environment shape purchasing decisions, essential spending continues and consumers are leaning on their own money as evidenced by the year-over-year growth in Interac <\/em>Debit (5%) and Interac<\/em> e-Transfer (11%) volumes,\u201d said William Keliehor, Chief Commercial Officer, Interac Corp. \u201cIn times of uncertainty, debit remains an empowering tool to help Canadians of all generations, including Gen Z, stay in charge of their finances.\u201d<\/p>\n\n\n\n

As this cohort of Canadians navigates an uncertain economy, a different style of financial advice is needed to help Gen Z take control. Gen Zs (37 per cent) agree that financial advice would be more beneficial if it focused on the emotional aspect of managing your money, compared to only 21 per cent of Boomers surveyed. While older Canadians stick with traditional sources for financial advice, such as financial advisors, Gen Zs were found most likely to seek out support from their immediate network like older family members (73 per cent), siblings or cousins (20 per cent) and friends (21 per cent).<\/p>\n\n\n\n

\u201cAs Gen Z navigates many financial firsts, we have a vested interest in understanding their spending behaviours and financial mindset so we can better deliver the experiences and resources they crave,” says Daria Hill, Vice President, Marketing & Communications at Interac Corp. “This generation is bringing a different perspective to their finances \u2013 one that demands next generation financial literacy resources in line with their values and realities.\u201d <\/p>\n\n\n\n

Conscious Economics has created Mindfulness & Money<\/a> programming in partnership with Interac, rooted in the concept of financial therapy, to help break down some of the barriers Gen Zs face to feel in control of their money and build their financial confidence.<\/p>\n\n\n\n

\u201cWe know there\u2019s an opportunity to revitalize financial advice for younger generations and it starts with the concept of mindfulness,\u201d said Aseel El-Baba, Conscious Economics\u2019 in-house Financial Therapist. \u201cWhile traditional financial advice plays a role for any generation, Gen Zs are seeking out emotional support to feel more in control of their financial reality. They need peer-to-peer bonds, guidance from trusted friends and new tools to focus on controlling what they can \u2013 we\u2019re thrilled to continue partnering with Interac to bring these resources where they\u2019re needed.\u201d<\/p>\n\n\n\n

Conscious Economics and Interac offer the following advice for Gen Z rooted in the concept of financial therapy:<\/p>\n\n\n\n