According to youth market research, the cost of livingcrisis is now the number one concern for 31%of Gen Z.
Rising prices across energy bills, gas andgroceries, amongst other things, are forcing young consumers to rethink their spending habits. Gen Z is looking upon the future with little hope. 51% believe they will never beable to support a family, whereas 41% fear they'll never be able to buy their own home.
These youth audience insights suggest animpending shift in consumer habits. More than ever before, Gen Z has to be practical about their spending choices. 47% of young consumers live paycheck to paycheck, with little money to spend on luxury goods and services.
In this article, we’ll discuss what companiescan do to support Gen Z through this crisis.
Why Should Businesses Care?
What at first glance looks like a crisis forthe young also affects the future of businesses, especially those that market to Gen Z customers. Lower spending will lead to lower revenue. Gen Z will be less likely to go out, eat out, or splurge on branded goods as paychecks get tighter and tighter.
Whilst much inflation is impossible for the averagebusiness to stop, companies are not always innocent regarding furthering the issue. The national minimum wage for 18-20-year-olds is £6.83, whereas, for those 23 and over, it is £9.50. Whilst the government has been pushing for more apprenticeship schemes, and training for young people, the low wages in these professions leave Gen Z financially insecure.
In times like these, stress and burnoutamongst young employees are high. This, in turn, can impact businesses with higher turnover rates and less engaged workers.
If you are a business either employing Gen Zor marketing to them, it’s more important than ever not to turn a blind eye to their plights.
How Can Businesses Support Gen Z?
If you want to support young people throughthis increasingly volatile period, there are ways your business can help:
Get Political
Throwing your weight behind Gen Z in theirfight for fairer living wages, more accessible grants, and caps on energy and fuel prices is an excellent way to show your solidarity. The cost of living crisis affects everyone, but brands can help draw attention to what needs to be done to protect the next generation.
Aim for Fairness
Times are complex, and not every business canafford to pay higher wages. Nonetheless, brands can support Gen Z by offering fair living wages and supporting their Gen Z staff where possible. Remember, money in the pockets of young consumers will feed back into spending and, therefore, revenue. In addition, being open to flexible working conditions to allow Gen Z a healthier work-life balance is also an excellent way to help.
Provide Resources
Youth Market Research knows that many youngconsumers don’t feel prepared to tackle financial issues. They feel uneducated about pensions, mortgages and savings. Brands can turn their content marketing strategies toward providing free, practical money management advice to help their audiences through this crisis.
Talk to us at This is Selfhood about our Youth Audience Insights if you want tolearn more.