Budgeting with your recent high school graduate

As your teenager transitions into adulthood, it’s important to teach them good financial habits that they can take with them for the rest of their lives. Giving them the right amount of support can take some finesse — it helps to be aware of how Gen Z typically spends, where they like to get financial information from, and the banking features they like to use. With this information at your disposal, you can send your teenager on their way with more peace of mind, knowing their finances will be in order.

Who contributes what?

Nearly half of Gen Z adults rely on financial help from their parents in some form. This is significantly more than past generations, so it’s likely you’ll need to give them assistance if you’re able. The expenses that parents most frequently pay for their Gen Z children are:

1. Groceries and food (87%)
2. Cell phone bills (73%)
3. Health insurance (69%)
4. Rent or mortgage (66%)
5. Tuition and school expenses (57%)
6. Leisure and vacations (56%)

Which expenses you decide to help with (if any) and how long you help are ultimately your choice. In any case, it’s important to clearly communicate with them about their expected financial obligations as they begin their journey into adulthood.

How does Gen Z budget and spend?

As digital natives, Gen Z likes to budget via their devices, whether that’s on budgeting apps, spreadsheets, or online banking platforms. If available, technology that does part of the legwork for them is preferable, making for a quick and efficient process. Apps like UBTgo can help track where their debit card is stored, allowing for easy monitoring of recurring payments such as subscriptions. To learn more about the online banking features that UBTgo offers, click here.

In addition to budgeting, Gen Z also has unique spending habits. The generation is generally very environmentally conscious, choosing to save money by going to thrift stores and secondhand shops. However, they tend to spend more on online shopping and subscription-model services. To combat this spending, teach them how to make a habit of checking their expenses. This will help your child stay on top of any subscriptions and make sure they’re not overspending on things they don’t necessarily need.

Finfluencers & AI

Gen Zers are nearly five times as likely as adults aged 41+ to get financial counsel from sources on social media. These financial influencers (or “finfluencers”) have developed a large Gen Z following across various social platforms. 38% of Gen Zers receive financial information or advice from YouTube, and 33% turn to TikTok.

But are these “finfluencers” helping or hurting young adults in their search for financial know-how? The answer: probably a bit of both. Finfluencers have successfully engaged a younger audience in financial discussions, meeting them where they are on social media with a bite-sized, casual approach to their content. They can quickly break down complex topics like buying versus renting, stocks and bonds, and more. Finfluencers can also make financial literacy fun and trendy. For example, “loud budgeting” made waves on TikTok in early 2024, encouraging the masses to be proud of the measures they take to cut costs.

However, many don’t see the negatives that come with this new way of spreading financial information. For starters, finfluencers don’t have the same legal obligations as a licensed fiduciary does. This means they may not disclose conflicts of interest, or they could spread bad information with no legal consequences. Additionally, finfluencers tend to create short-form content that is 60 seconds or less, a style of content that has spiked in popularity in recent years. This can cause nuanced subjects to be oversimplified for the sake of time, offering viewers a limited perspective. Make sure that, if your Gen Z child frequently gets financial advice from finfluencers, they know the risks and potential downsides.

The same can be said for financial advice generated from artificial intelligence (AI). Large-language models like ChatGPT, Google Gemini, and Claude can provide a wealth of information in mere seconds. However, this information can be sourced from anywhere on the internet, and AI in its current form is prone to “hallucinate” or make things up in the process of answering your question. AI can function as a starting point for finding sources on a financial topic, but be sure to review each source it finds for credibility and accuracy.

What financial tools and features do Gen Zers need from their bank?

Again, digital is the name of the game for Gen Z, so you’ll want to make sure their bank offers full-service online banking for their convenience. This includes perks such as instant payments, real-time notifications, online customer support options, and peer-to-peer lending compatibility.

UBT offers Simply Free Student checking and savings accounts for customers aged 14 to 25. These accounts offer a low-risk option for younger account owners learning how to manage their funds. UNL students can also open a Simply Free UNL account, as well as have access to an entire team dedicated to serving UNL customers. Click to learn more about UBT checking and savings accounts.

Once they open an account, they’ll also get access to several online banking features by downloading UBTgo, our app with a 4.9-star user rating. Lastly, UBT also offers personalized service from people who care — a valuable resource to any customer, but especially young adults still new to navigating their own finances. Visit our locations page to talk with one of our experts near you.