The ages of the people associated with Generation Z range between around 19 or 20, depending on where you look, and the kids born today. These are the current children of the world. While most of them are far too young to be saving up for their first down payment, knowing what they can do to prepare will be very helpful in their preparation for what is to come in the next 10 or 20 years of their lives.
It is important for the young adults and teenagers of the world’s newest generation to understand how important their credit is. While getting credit cards and going on shopping sprees may seem fun, know that any mistakes make now will make buying a home in the future much harder.
Unless you just so happen to stumble across a few hundred thousand dollars, which you won’t, you will need to take out a mortgage on the home you intend to buy. This means that a lender will pay for your home, and you will be paying the lender back monthly with additional interest as time passes. To be eligible for a mortgage, you will need to good credit. Getting a loan with bad credit (620 and below) will be very, very hard.
Build up your credit now. While this may seem like a very daunting task, there are some simple ways to do it. Creating a credit card at a simple department store is a great way to start. The next time you want to get some clothes, shop at a Macy’s, JCPenney, etc. and put it on a credit card. You obviously don’t want to go overboard and spend money that you don’t have. Pay back the money on the cards fully and on time. As time passes, and you do more things like this, you will have a relatively good credit score.
Even for the oldest members of Generation Z who may only be 20 or so years old, it is still possible to begin saving. If you have a job, taking out a percentage of your paycheck and adding it to a savings account will help you be prepared when you finally decide to make the move towards homeownership. Taking out a small percentage will accumulate as the years pass on, and the small amount of money you put away probably won’t be noticeable. Being responsible with this money will be extremely important towards whether you save efficiently.
Generation Z is the youngest group of people in the world now. Most of them are far too young to be worrying about buying their first homes, but the ones that prepare early and make smart decisions will always be steps ahead when the time finally comes.