How They Can Overcome Them

Though the youngest end of Gen Z are not old enough to live alone and work full time, those on the older end are well into their 20s, working and trying to survive in the world. Though they may be young, they’re not too young to have financial regrets.

There’s nothing quite like getting out into the world on your own to teach anyone just how challenging it is to manage finances and plan for the future at the same time.

GOBankingRates spoke with several Gen Zers about their financial regrets, what they learned and their advice for others.

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Earning passive income doesn’t need to be difficult. You can start this week.

Regret: Not Saving or Budgeting Money

Lena, a 24 year-old nanny based in New York, had her parents’ help saving the money she received as gifts from birthdays, graduation gifts and small summer jobs when she was young. But when she arrived at college, she quickly realized she didn’t have the budgeting skills she needed.

“Unfortunately I had no idea what to do with [the money], and blew through it before I graduated. Now I’m living on my own, paying my own rent and bills and I wish I had saved some of that money for now when I really need it,” she said.

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Solution: Find a Budget That Works for You

It was in college that Lena learned budgeting skills. Now, she goes over her credit card statement in detail at the end of the month and uses a spreadsheet to add up her purchases in a number of categories. “This makes me super aware of how I’m spending my money, keeping me accountable and reduces making stupid purchases,” she explained.

She stresses that using a credit card is only useful if you pay it off at the end of every month, but it has the added bonus of building great credit.

Now, she has a savings account that she can only contribute a small amount to after expenses, but she is happy to be on the right track.

“If I had been doing that in college, I would’ve been more aware of my spending habits and could have made better choices. I know I spent a ridiculous amount on Starbucks, food delivery and nights out.”

Regret: Taking On Student Loan Debt

Mary McClelland, a Gen Z artist living in New York City, was unable to finish college after the COVID-19 pandemic hit. This left her only with an associate’s degree and $100,000 worth of student loan debt, for, she said, “what feels like no reason, and little to no hope of being able to pay it off in my lifetime.”

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Solution: Community College

If she could have done it differently, she would have gone straight to community college after high school and joined a trade school or international program instead of a four-year college.

“College used to be a guarantee to a career and a seemingly comfortable life, but that’s just not the case anymore,” she said. “It seems like everyone my age is struggling financially, degree or no. It’s not like me to have a regret about the way my life has worked out because it’s ultimately brought me so much experience.”

Despite her regret, she is grateful for the life experience she gained. McClelland’s advice to others is: “Believe in yourself and the decisions you are making for yourself. You did what you thought was best for you at the time. It’s OK to live and learn, forgive yourself.”

Regret: Spending Too Much Money on DoorDash and Dining Out

Solveig Q., a 25-year-old master’s student and bartender in Colorado, regrets how much money she has spent on DoorDash.

“I probably spent up to $300 a month on DoorDash and sometimes more, which is $3,600 a year. I wish I’d saved that money and meal-prepped instead,” she remarked.

Solution: Meal Prep

Solveig did finally get a handle on her spending and changed her habits. “Over the last couple months I started meal prepping more and have saved $600 and I’m eating healthier. I would tell the younger generation that meal prepping is so much better for you and you will save so much money.”

She saves to eat a nice dinner out once a month. “I understand it’s hard to balance school, work and eating healthy,” she said, “but once you get in the hang of meal prepping it’s fun and a lot easier.”

Sometimes the best financial teachers are the mistakes you make along the way. These Gen Zers are still young enough to get past their financial mistakes and find solid footing along the way.

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This article originally appeared on GOBankingRates.com: Gen Z Isn’t Too Young for These 3 Financial Regrets: How They Can Overcome Them