Business Insider: “4 things Gen Z needs to know about banking before spending another penny”

Business Insider, Nov. 4, 2021 — Marguerita Cheng, CFP® Pro is featured in today’s article by Sophia Acevedo who explains, “When it comes to banking, little tasks can easily feel like overwhelming chores instead of important financial decisions. Setting up different bank accounts, managing a budget, saving for emergency expenses? Most schools didn’t teach us — Generation Z — how to do this. But with age comes responsibility, and a chance to learn essential life skills. And let’s face it, Gen Z, we’re getting older — landing first jobs, renting out first apartments, and making the first independent financial decisions that could impact our lives.”

She turned to Marguerita for insights into what to do before spending another penny if you don’t have a lot of experience with banking.

“If your first bank account was set up by a parent, you may be ready to open up a second one by yourself,” explains Marguerita. “Even when you’re in school, if it is appropriate for you to open another account, you’re not doing anything to disrespect your parents. There’s tremendous value in having an account.”

But Gen Z should be wary of CDs. “While CDs have high interest rates, they also have early withdrawal penalties if you take your money out early. You might need a new laptop, and that costs money. There might be a death in your family, and you need to buy an airplane ticket. You may not have been able to see your family for a while, and you’re becoming an aunt or an uncle for the first time. Don’t tie up your money [in a CD]. Make sure that you have it available.”

Checking accounts, savings accounts, or money market accounts may be more suitable choices because “you can still take out money if you need it in a pinch.”

If you’re passionate about social or environmental activism, you can factor that into your banking and investing decisions. Click here to learn how!