1. Understanding Net Worth for Gen Z
Net worth is a crucial financial metric that provides a snapshot of one’s overall financial health. It’s calculated by subtracting your total liabilities (debts) from your total assets (what you own).
For Generation Z, those born between 1997 and 2012 (currently ages 11-26), understanding net worth is particularly important as they navigate the early stages of their financial lives.
Gen Z faces unique financial challenges and opportunities. On one hand, they’re entering adulthood with unprecedented student debt. On the other, they’re the most digitally literate generation in history, with access to endless financial tools, educational information, and resources.
Many Gen Z individuals, especially those between 22 and 26, start their careers with negative net worth due to student loans. However, it’s essential to understand that this starting point doesn’t define their financial future.
