Recent findings suggest that many Gen Zs in Nigeria are not taking the path that will lead to a future of financial bliss.
Piggyvest, one of Africa’s fintech giants, recently paid over ₦1.1 trillion ($1.42 billion) to its customers since its inception in 2016. Shortly after, they released a savings report on their Nigerian user’s money habits.
Piggyvest 2023 Savings Report is a result of analysed survey data that examined financial metrics such as income, spending habits and saving habits.
The Nigerian fintech giant also provided a generational report of its users regarding money decisions.
The first edition of the report on savings has revealed that the fascinating and usually dramatic Nigerian Gen Z (people between the ages of 18-26) might not be ready for the kind of future they want to have.
In the 41-page report, Piggyvest asked its users what future goals mattered most to them and out of all the generations observed in the report, Gen Zs appeared to be the most ambitious. Here are some of the stats:
No Generation Desires to Leave the Country More than Gen Zs
Considering their financial capacity and public knowledge that relocating cost millions, one wonders how their emigration expenses would be resolved unless Gen X – their parents will be footing the bills.
49% of Gen Zs Would Like to Get Married in the Next Five Years
Meanwhile, almost half of them are not looking the part as far as their financial habits are concerned as you will see shortly.
The report also showed Gen Zs to be the least prepared generation for retirement, which is okay, as it would be too early to expect more than that from a generation that is in a way just starting their life.
However, in areas where they could be more intentional, here are parts of the reports that show Nigerian Gen Zs are not ready to live comfortably in their most desirable future.
Only 26% of Gen Zs Have More than One Stream of Income
People who want to be financially stable and live the life of their dreams should not be sailing on one stream of income.
Traditionally, financial stability does not come from one source of income. If one stream fails, another should be available to at least serve as a safety net.
The idea of multiple streams of income is not only good for financial stability. It also improves an individual’s earnings if all or most of the several streams of income thrive.
However, the situation of Nigerian Gen Z’s income stream might be justified because they are at the start of their careers compared to the 67% of Boomers that have multiple sources of cash flow.
The Gen Zs still have time to change this but shouldn’t get comfortable if they want to realise financial freedom as soon as possible. This should become a part of their 2024 goals.
Only 4% of Nigerian Gen Zs Have Emergency Savings
While 59% of Nigerians said yes when asked if they have funds set aside for emergency purposes, only 4% of Gen Z showed an emergency savings habit across generations.
Financial experts agree that building an emergency fund with 3-6 months’ worth of living expenses is crucial. Having an emergency fund can prevent financial stress in case of unexpected expenses or job loss. Like when an individual’s sole stream of income fails.
For a Gen Z looking to get married in the next five years, having an emergency fund savings culture should be a must have. Having a family increases a person’s chance of dealing with more emergencies due to being responsible for others.
Saving can be hard when income is low and it would be insensitive not to sympathise with the income situation of Nigerian Gen Zs. Most of them are likely entry-level workers having to deal with unpleasant inflation rates in the country.
A lot can positively change in five years for Gen Zs disciplined enough to make the right financial decisions even while under tough conditions.