Financial Questions From a Zoomer to a Boomer
As a member of Gen Z, or a “zoomer,” I have some college behind me and am now beginning to enter the so-called real world, facing the financial challenges that come along with that transition.
I’m at that annoying middle ground point where I can afford to pay rent but would be in serious trouble if something happened to my 15-year-old sedan. I feel somewhat competent about the world of finances. but there are so many questions I still have.
When can you claim tax withholding? Starting out pretty basic, but I honestly have no idea. I’ve seen questions regarding this on multiple employment forms and have always answered “no” that I don’t claim withholding, without actually knowing what I should answer, it just seemed like the safe option.
Mortgages, how do they work? No, but seriously, this is a major question I and many people in my generation have. I would like to become a homeowner within the next 10 years or so, but I genuinely have no idea how they work.
And there are so many follow up questions with this as well:
How do you get approved for a mortgage?
How do mortgages differ from traditional loans?
How do you even go about buying a house?
What happens if you want to sell the house before the 15 or 30 years on the mortgage are up?
How much of the house price is the monthly payment?
How much interest do you have to pay? What does it mean to refinance a mortgage?
My generation can tell you that in 1492 Columbus sailed the ocean blue, but we have absolutely no idea how the process of buying a house works.
How does your credit score work? And how can you increase your credit score? Having a good credit score is necessary for so many things, like taking out loans, renting a home, etc., but how credit scores actually function is a mystery to most zoomers.
How practical is it to start your own business? To what extent are the startup and operations costs? How would you be able to fund that? How would you be able to manage all the legal hoops and red tape? Zoomers are a very entrepreneurial generation, with a Nielsen study finding that 54% wanting to become business owners. However, Gen Z also lacks the technical knowhow to actually start a business, which leaves them in a predicament.
Gen Z has many questions for older generations who have life experience in these fields, but we are still struggling to find the answers.
