7 Retirement Tips From Gen Z That Millennials Need To Learn From

Many people strive to learn from those who are older than them, but younger generations can also have some great perspectives. This is true when it comes to finances as millennials — and older generations — could potentially learn some great money strategies from Gen Zers on the path to retirement .

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Given that age is relative when it comes to understanding personal finance and making smart, long-term money decisions, you may be wondering what older generations can learn from younger ones.

Here are the top retirement tips from Gen Zers that millennials — and older individuals — could learn from .

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Prioritize Compound Interest

Taking advantage of compound interest as soon as possible can help your money grow exponentially. Even though millennials are older now — in their 30s and 40s — it’s not too late to prioritize saving in high-interest accounts. Older generations might know to do this, but some might think it’s too late.

“Recent reports show that Gen Z is outpacing millennials and Gen X in retirement savings when they were the same age. Millennials can’t turn back time, but the sooner they can start saving the better,” said Christine Devane, the CEO and co-founder of Brightfin . “Start early and let the magic of compounding do the work. These results are achievable with a 401(k) if that’s provided by your employer, or a Roth IRA, which is a great option for young people who have time to see their investments grow.”

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Use the Tech

There’s no real reason to avoid personal finance apps that help people save, budget and invest. This is something Gen Zers know well, and that older generations could also learn from.

“Apps are being used by Gen Z to automatically invest small amounts of money early and often. Some apps even let you round up to the nearest dollar or invest small amounts into brands you buy from,” said Taylor Price, Gen Z personal finance expert and founder at Priceles s Tay. “This method of micro-investing helps you form good habits and earns you interest over time. It’s also easier to choose where to put small amounts of money than it is to put a big sum of money.”

On the topic of tech, Price also said that Gen Z is more likely to use robo-advisors for low-cost, automated investments. While not the only way to invest, it can make it easier to plan for retirement.

Get Creative With Those Income Streams

It’s no secret that having multiple income streams can get you on the path to financial security and even wealth. But many Gen Zers have gotten particularly creative in this.

“Making a little more on the side can be one way to supplement income. But to do this in a way that is sustainable enough to make reasonable money over time, the activity you choose has to be something you truly don’t mind doing,” Devane said.

“You could drive for Uber, if you don’t mind being in the car, or babysit, walk dogs, or get a part-time job at a store you like,” Devane continued. “If you have a professional skill like coding or graphic design, you could pick up some freelance work. And you already know that it is not passive income but fully regular, time-consuming, actual work. It has to be worth the effort for you, and if it isn’t, that is ok too.”

Make Sustainable Investments

Sustainability has become increasingly important over the past couple of years — or decades. But Gen Z’s focus on sustainability extends to the way they invest, something that could help them — and those who choose to do the same — on the path to retirement.

“This conscientious approach not only aligns financial goals with personal values but also supports causes they believe in,” said Blake Whitten, financial advisor at Whitten Retirement Solutions. “Millennials can integrate these values into their retirement planning by exploring sustainable investment options that not only aim for financial returns but also strive to make a positive impact on the world.”

Prioritize Financial Literacy

Having a solid understanding of personal finances is a surefire way to improve one’s financial situation — now and in the long term. One way to do that is through social media, apps and other online platforms.

“Prioritizing financial literacy is something Gen Z is very big on, and this is a point that almost everyone could use implementing more,” said Erika Kullberg, a personal finance expert, attorney and founder of Erika.com . “Gen Z loves to make use of the wide variety of online resources, apps and social media platforms to gain financial knowledge that they wouldn’t find anywhere else.”

Don’t Just Save For Retirement

Each generation operates differently from the one that came before, but this just means more opportunities to learn from one another. One way millennials could learn from Gen Z is to prioritize saving — but not only for retirement.

“While Gen Z is already ahead in retirement savings, they also know how to balance saving for their current priorities. They have different life goals than their parents did,” Devane said. “More young people are forgoing marriage, having kids or buying homes (either by choice or circumstance) and are more likely to spend on life experiences, like travel and concerts. There is no one-size-fits-all budget that works for everyone, and Gen Z already understands that money is a resource that supports their ideal lifestyle.”

Regardless of where they’re at in life, millennials could also benefit from reevaluating their priorities and finding a balance between saving for retirement and achieving those shorter-term goals.

If You Can’t Afford Big Investments, Make Small Ones

It’s easy to put off investing until you have large sums of cash on hand, but the longer you wait, the harder it is to see those returns you need for retirement. This is something many Gen Zers have figured out that millennials could learn from, too.

“Micro-investing is actually a key Gen Z move and rests on the idea that building money-saving habits is foundational and so important,” Kullberg said. “Typically, older generations — such as millennials — might feel that if they don’t have much income, investing isn’t worth it. But Gen Z knows that it actually becomes even more important to build investing habits when you don’t have big amounts to invest with.”

This article originally appeared on GOBankingRates.com : 7 Retirement Tips From Gen Z That Millennials Need To Learn From