By Janet Currie
The Class of 2025 is beginning to make its mark on the global economy. In roughly the next five years, according to BofA Global Research, Gen Z will have globally amassed $36 trillion in income and that figure is expected to surge to $74 trillion by around 2040. As a result, they likely will be among the most disruptive generations to economies, markets and social systems.
Entering the workforce is a major milestone, and building strong financial habits at the onset of your professional life is more important than ever. Here are five practical strategies to help you take control of your finances and your future.
Use digital tools to take control of your money
Budgeting apps and banking tools can help you track spending, avoid surprise charges and make confident decisions—especially when your paycheck is your primary source of security. Digital tools offer real-time visibility that can ease financial anxiety and help you feel more in control.
Build a budget that includes saving—and investing
Starting a job comes with new costs: rent, student loans, car payments, insurance—and probably a few things you haven’t budgeted for yet. Even if the future feels uncertain, your financial habits don’t have to be. Prioritize both short-term needs and long-term goals, like saving and investing. Viewing savings as a “must-pay” bill makes it more likely you’ll stick to it, no matter what’s happening in the job market.
Pro Tip: Try the 50/30/20 method—allocate 50 percent of your after-tax income for needs, 30 percent for wants, and 20 percent for savings or debt repayment. You can adjust over time, but it’s a smart starting structure for first-time earners.
Start an emergency fund—even if it’s small
It’s hard to feel secure when many young workers are hearing things like: “My company’s had two layoffs in two years—when’s the next one?” As you navigate this uncertain landscape, having an emergency fund is more than a safety net—it’s peace of mind. Aim to cover three to six months of expenses, but don’t be discouraged if you start small. Even setting aside $25–50 a paycheck can build momentum.
Tackle student loans with a clear strategy
Managing student debt alongside your new job can feel like a juggling act—especially if you’re not sure how stable your income will be long term. Start by listing all your loans, due dates and interest rates. Make minimum payments on time and increase them when you’re able. As you grow in your role and (hopefully) your salary rises, revisit your repayment plan. Also, check with HR to see if your employer offers student loan assistance—some do!
Take full advantage of your employee benefits
Even in an uncertain economy, many companies still offer valuable perks, so don’t leave free money on the table. If your employer offers a 401(k) match, contribute at least enough to get the full match. That’s an immediate return on your savings. Also, consider opening a Health Savings Account (HSA) if it’s available, which offers triple tax advantages and can help with future medical expenses. These benefits may not seem urgent now, but they’re foundational to long-term stability which is especially important if your career path includes some unexpected turns.
The bottom line
As Gen Z enters the workforce and starts to shape the financial future, it’s important to remember establishing good money habits is in your hands. While you can’t predict every economic shift or tech disruption, you can take control of your financial habits. By making smart financial decisions early in your career, you’re not only protecting yourself from short-term shocks—you’re building a foundation for long-term confidence and financial freedom.
The opinions expressed in this commentary are those of the writer and not necessarily those of the AFRO.