7 Financial New Year’s Resolutions for Gen Z

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The Fidelity Investments 2025 Financial Resolutions Study found that Gen Zers came in second behind millennials for feeling financially optimistic, making plans to reach financial goals and being willing to set resolutions. However, some in this group struggle with paying off student debt, lack sufficient savings and have a hard time managing expenses.

If you’re an adult Gen Zer, starting 2025 with some smart money goals can help improve your financial stability and prepare you for big decisions, including buying a home and starting a family.

Here are seven financial New Year’s resolutions worth considering.

Learn the Basics of Money

Since financial literacy is very important for achieving goals, a good 2025 resolution is learning the basics of budgeting, handling debt, saving, investing and managing risk. However, Gen Z is often prone to using social platforms like TikTok to get money advice that might not be accurate. In fact, TikTok is one of the most popular sources for Gen Z to get financial information, as reported by CNBC.

While some of this information can be helpful, Gen Zers may be better off turning to reliable sources, such as financial advisors or mentors, bank financial education portals, expert videos, and personal finance books. Universities and government agencies also often provide financial education courses and other resources. 

Live On a Realistic Budget

The Fidelity study also found that Americans in all age groups struggled with inflation and everyday bills. But with many in college or early in their careers, Gen Zers can particularly struggle and rely on extra money from parents to help cover housing and other essentials.

Improving financial stability in 2025 will require making a budget that wisely allocates income and avoids splurging on luxuries that hinder financial goals. It’s then necessary to live on that budget and change financial behaviors when spending appears to get out of control.

You might find keeping this resolution easier with apps like Goodbudget and Rocket Money. 

Fill Up an Emergency Fund

According to the 2024 Bank of America Better Money Habits survey, 57% of Gen Z respondents lacked a three-month emergency fund, which is commonly viewed as the minimum recommendation. Not having one not only increases financial stress but also puts Gen Zers at a bigger risk of building up credit card debt.

To prepare for unexpected expenses, consider a New Year’s resolution of setting up a high-interest savings account and contributing regularly until you’ve built up at least three months’ worth of expenses. That money should stay put until it’s needed for true emergencies — such as medical bills or big repairs — rather than unnecessary splurges.

Tackle Student Loans and Credit Cards

Student loans and credit card debt are common sources of financial anxiety for Gen Zers. While avoiding debt in the first place is ideal, the next best thing is to resolve to pay it off or at least better manage it in the new year. 

One strategy is using the debt snowball plan to go after your debts from the smallest to the largest amount, though you might instead want to target debts based on their interest rates. For large student loans, picking a realistic repayment plan that prevents defaulting can be a good compromise while reconsidering future payoff options.

Build Credit the Wise Way

Even though Experian data showed that Gen Z had increasing credit scores over the last few years, this group’s average credit score still remained below the national average. If your credit needs some work, you can face issues with getting a mortgage or another loan at a good rate.

Planning to build credit wisely in 2025 can look like getting rid of existing debt, never missing any payments and avoiding unnecessary borrowing. It’s also important to try not to carry card balances since they can lead to costly interest charges.

Using a credit monitoring service is a good way to keep an eye on your progress.

Get an Early Start on Investing

Bank of America’s 2024 survey also showed that only 20% of Gen Z respondents were contributing to their retirement savings. While retirement might seem far away if you’re a young adult, you will miss out on several more years of compound returns and risk not saving enough if you put it off.

While stashing money away for retirement can seem difficult, deciding to regularly contribute a small amount to an IRA, a 401(k) or a similar account will still help. Plus, this New Year’s resolution has other possible benefits, such as employer 401(k) matches, tax deductions for some retirement contributions and the Saver’s Credit.

Carefully Consider Homeownership

The housing market situation and expensive mortgage rates can turn off many Gen Zers from homeownership. But a good New Year‘s resolution is to at least look at the cost and benefits of buying a place in the next few years and then create a financial plan if that’s your goal.

Some things to consider are available savings for a down payment and closing costs, mortgage payment affordability, credit scores, and real estate prices in the area. If you’re an aspiring Gen Z homeowner, you should also start regularly saving for the upfront costs and take steps to build credit, get rid of other debt and live on a budget.

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