The field of financial planning is evolving. These Gen Z and Millennial CFPs are helping lead the industry to the future and share their thoughts on the biggest pitfalls and opportunities that investors face today. (2023)

  • Financial planning has traditionally been reserved for people with over $100,000 who have portfolios.
  • However, many young CFPs realize this leaves many poorer millennials and zoomers in the dust.
  • Focusing on financial coaching and helping clients hit goals has become a much bigger priority.

Get the inside scoop on what traders are talking about — delivered daily to your inbox.

Thanks for signing up!

Access your favorite topics in a personalized feed while you're on the go.

The economic situation of millennials and Generation Z is very different from the economy that previous generations have enjoyed.

One study from 2020 indicated that even though millennials make up the majority of the workforce, they are still ten times poorer than the Baby Boomer generation.

(Video) How Demographic Changes Are Impacting the Future for Retirees with Bradley Schurman

This is even despite the fact that some data suggests that millennials actually earn more at their age, but still hold significantly less wealth because this rise in income cannot keep up with the pace of increased costs of living.

This departure from previous norms has led to a gap in the utilization of financial services. With less income, there is less reason for younger generations to hire a financial planner. The certified financial planning board has acknowledged this, and in recent years has dedicated more space to discuss what to do in order to fill this gap.

While "financial advisor'' can serve as a more generic term for any professional who helps clients with their assets and investments, a financial planner is a specific title that comes with a certification that requires the planner to undergo a certain amount of working hours and have a certain amount of financial education before they can take on the title.

Many financial planners often focus on simply growing a clients' investment portfolio, and oftentimes firms will require a potential client to already have a net worth of several hundred thousand dollars before they will take them on, making financial planning prohibitively expensive for people in a country where about 25% of people don't even have any emergency fund savings.

In response to this, there has been an explosion in popularity for a field known as financial coaching. This is not the same thing as financial planning, or even really "financial advising" — financial coaching is a more holistic approach to helping clients grow their wealth.

While a financial planner or advisor might be more focused on the returns that your retirement account is getting and what its asset allocation is, a financial coach is there to help you work through your emotional hang ups about money, set a budget, formulate goals for your savings, and help you reach those goals.

However, financial coaching is a largely unregulated industry, and doesn't really require much in the way of credentials in order to become one. This field is also often closely linked to the growth in personal finance influencers, who talk about making and reaching savings goals and growing your net worth.

That said, it's still a very popular service despite the lack of regulation and formal expertise of many financial coaches — some of whom have grown very lucrative businesses offering this service.

Younger financial planners are discovering this as they've entered the field, and as a result, many of them are rethinking what it is that they have to offer their peers as a financial planner. Insider spoke to three certified financial planners over the last few months, and they all shared insights about their field, and how it's affected the way that they approach their practice.

(Video) Washington, DC - CBAC Meeting on 04/25/2017

The field of financial planning is evolving. These Gen Z and Millennial CFPs are helping lead the industry to the future and share their thoughts on the biggest pitfalls and opportunities that investors face today. (1)

Courtesy of Colin Overweg

Investment management is so easy 'a robot can do it'

Colin Overweg, 29, is a financial planner from California who has an all-virtual practice called Advize Wealth, where he chooses to help clients focus more holistically on their finances instead of just managing their investments.

In fact, Overweg suggests openly that most people should think twice about hiring a financial planner who is only monitoring their portfolio, stating that this task is "so easy a robot could do it."

There is definitely a different type of need in services for younger demographics," Overweg said. "The investment management tools and resources out there now are so much better than they've ever been."

He is a big fan of robo-advisor platforms as a low-cost, simple way for people to start investing and encourages most people to take advantage of these new tools that cost a fraction of what a portfolio advisor's fee would be.

In fact, Overweg said that things have improved so much that he believes that the average person has more powerful tools at their disposal than "the wealthiest of the wealthy had 10, 15, or 20 years ago."

"But most people just don't know how to apply these tools to their specific situation," Overweg added. "And that is really the gap that I'm trying to fill — the advice-only space."

Overweg said that instead of focusing on managing a portfolio, he will steer clients toward utilizing a robo-platform, and then focus on other issues, like whether or not the client should be focusing more on investing or more on paying down their debts, or helping them navigate a step-by-step plan for achieving their goal of buying their first home.

The field of financial planning is evolving. These Gen Z and Millennial CFPs are helping lead the industry to the future and share their thoughts on the biggest pitfalls and opportunities that investors face today. (2)

(Video) Financial Independence Retire Rich & Retire Early

Brittney Castro

Coaching and consulting is where planners can add value

According to certified financial planner Brittney Castro, 38, these kinds of services are where financial planners can actually provide value-add to their clients' financial lives.

Castro began her career as a financial advisor and then certified planner over 15 years ago, but hasn't been seeing clients in recent years, as she pivots her attention toward financial education content on social media.

She said that she loves doing content creation and likes the freedom and flexibility that this career shift gives her, adding that she believes this material is also educational and helpful and that her certification and past experience with clients adds to her credibility.

"Our value is in educating and helping clients with strategy," Castro said. "I think that coaching model is more popular because it's more holistic. Especially with this younger generation, that's what we want — someone who's helping us think about money and our decisions every day — as well as telling us how to allocate our portfolio."

Castro also believes that this coaching model creates an ongoing relationship between the planner and client that can last for decades, and mutually benefit both parties.

"There's never some final destination, because once you get to whatever goal you have, there will be a new goal, or challenge," Castro said. "This is an ongoing relationship, and things change all the time."

She then said that emerging technologies like Venmo, Zelle, robo investing, and cryptocurrency means that financial planners need to remain educated and flexible, in order for their advice to clients to remain relevant.

"No matter if you have a negative balance in your account or $20 million, there's always something to learn to manage, to improve on," she added.

The field of financial planning is evolving. These Gen Z and Millennial CFPs are helping lead the industry to the future and share their thoughts on the biggest pitfalls and opportunities that investors face today. (3)

(Video) Ep. 10 - Why are Millennial Career and Retirement Planning Different?

Courtesy of Nate Hoskin

Financial services are gate kept from general public and it makes income inequality worse

Nate Hoskin, 24, is one of the youngest financial planners in the United States. He has his own growing firm, Hoskin Capital, and focuses a lot of his attention on the needs of millennial and Generation Z clients.

This includes new developments in the ability to save for retirement and achieve financial stability in the face of multiple recessions, economic impacts from climate change, and the changes to what employers offer their workers in terms of benefits and retirement accounts.

Hoskin has said that Gen Z needs to radically rethink how they're going to retire in the face of this new economy, and strongly suggests taking time to develop multiple streams of income that can continue to serve you as you attempt to move farther away from holding a traditional 9-to-5 job.

He doesn't just dispense this advice — he also lives it. In addition to his firm, Hoskin also has a 9-to-5 where he counsels clients who are in some of the lowest tax brackets in this country, and helps them get from crisis to crisis when it comes to feeding kids and keeping a roof over their heads.

"I am here to help people who don't traditionally get access to financial advice because I saw how simple it was because of my previous jobs," Hoskin said, who has worked for hedge funds in the past. "We were working with multimillionaires, and I saw the systems that they were using and what was available to them."

Hoskin said that these resources can potentially be available to everyone, but are often "gate kept" because it's not as profitable to work for clients that have lower incomes.

Hoskin said that with his own firm, he's less interested in maximizing his own income as much as possible, and wants to focus on providing services that have never existed before for the populations that he caters to.

"Inevitably it's going to make me some money," Hoskin said. We're going to be charging subscriptions and managing people's money — and that money is going to grow — but I have no interest in trying to sell this company for $100 million or anything like that."


How Gen Z is changing the economy? ›

Gen Z isn't taking inflation and the higher cost of living sitting down. Currently, 75% of Gen Z are taking or considering steps to earn additional income including: changing jobs (34%), turning a passion into a source of income (31%), taking on a second job (26%) or even a job they don't like (23%).

What is Gen Z investing in? ›

Gen Z and millennial investors are more likely to own ESG, penny, SPAC, IPO, and REIT stocks than previous generations.

How are Millennials doing financially? ›

Millennials, born between 1981 and 1996, have more than doubled their total net worth, reaching $9.38 trillion in the first quarter of 2022, up from $4.55 trillion two years prior, according to a MagnifyMoney report.

What percentage of Gen Z is investing? ›

All in On Investing

Rosenthal is the ultimate personification of Gen Z's enthusiasm for investing. Fifty-four percent of Gen Z hold some kind of investment, according to Investopedia's survey, ranging from mutual funds and exchange-traded funds (ETFs) to cryptocurrencies and non-fungible tokens (NFTs).

How much financial influence does Gen Z have? ›

They Have $360 Billion in Disposable Income

The spending power of Gen Z is on the increase. In 2022, Business Insider, estimated their spending power at over $140 billion.

Why Gen Z will change the way we work? ›

What's more, this generation prioritize jobs where they can expand their skills and broaden their talents and experience. This means that employers will need to change how they attract, hire, develop and retain talent, fostering personal development. And that could have knock-on benefits for any generation.

How Gen Z and Millennials differ financially? ›

However, there are some noticeable differences. For example, Generation Z has the lowest amount of debt on average, however, they did experience the most growth of debt in comparison to millennials — with debt rates rising 67.2% for Gen Z and only 11% for millennials.

What are Millennials and Gen Z investing in? ›

An April 2021 Motley Fool survey looked at just what types of investments attract Gen Z: 73% own stocks, making them the most common type of investment for this generation. Growth stocks and dividend stocks are the most popular type held, both at 58% of respondents, with value the third most popular.

Is Gen Z financially literate? ›

Although Gen Z respondents averaged the lowest (43%) in answering finance-related questions correctly, no generation demonstrated a particularly high level of financial acumen.

Does Gen Z care about money? ›

Data from Deloitte's 2022 global Gen Z and Millennial Survey shows that a third of Gen Z respondents worry about the cost of living above all other concerns; 45% live pay-cheque-to-pay-cheque, and just more than a quarter doubt they'll retire comfortably.

Is Gen Z financially independent? ›

Couple that with the student debt crisis among Millennials, and you have a generation eager to get a head start on their financial futures. Unlike Millennials, who are known to be collaborative, Gen Zers are fiercely independent and competitive when it comes to success in school, work, and life.

Why do millennials have financial problems? ›

Debt is a key reason so many millennials are falling behind financially. Although many Americans managed to improve their finances during the pandemic, overall consumer debt increased in 2021, according to recent data from Experian, with the average debt balance for millennials growing by 15.4 percent to $100,906.

Where does Gen Z get financial advice? ›

Generation Z are almost five times more likely to get financial advice from social media platforms than people aged 41 or over. Trust, accountability and protection from scams are important attributes held by social media platforms that allow them to host the bearers of financial advice.

What are the top 3 things Gen Z spend their money on? ›

Generation Z spends an outsized portion of their income on eating out, mobile devices, transportation and housing.

How does Gen Z measure success? ›

of Gen Zers measure their personal success at a company by the respect they get from colleagues.

What challenges does Generation Z are facing right now? ›

Inflation is the top problem Gen Z and Millennials name as the biggest they are facing today. Over-dependence and addiction to technology ranked second as the top problem among young people for the first time. However, racism and COVID-19 are still top concerns for these gens.

What influences Gen Z the most? ›

Gen Z Is Inspired Most By The Real People In Their Lives

We know consumers are more likely to follow creators who look, act and live lives they can relate to—like everyday people—vs. celebrities or even social celebrities.

What is the effect of Generation Z? ›

Generation Z can either think of the world as unsafe or have greater global awareness about what their world is like (Twenge, 2017). There is evidence that one consequence of this generation's experiences with violence to their perception of mortality is that Generation Z is less likely to take physical risk.

Why is Generation Z important in the future? ›

Gen Zers have an entrepreneurial spirit, having grown up during the Great Recession, and place a value on furthering their education. They care about the world and want to make an impact. Worldwide, Gen Z has surpassed millennials (born from 1981 through 1996) as the largest generation, making up 32%

Why is Gen Z important to business? ›

Gen Z aren't simply important because they're the customers of tomorrow. A few recent Growth Strategy projects have made us realise that people born between 1995 and 2012 are essential to businesses today because they are the first generation of children who know what the future will be made of.

What do Millennials and Gen Z value the most at their workplace and why? ›

Millennials prioritize job flexibility; Gen Zers prioritize job stability. Millennials, sometimes referred to as the “job-hopping generation,” value job flexibility and want careers that can adapt to them. If they feel their current career no longer serves them, they are likely to seek employment elsewhere.

What is the main difference between Millennials and Gen Z? ›

As you may think, defining the two generations is based entirely on dates—in this case, years. A Millennial is anyone born between 1980 and 1995. In the U.S., there are roughly 80 million Millennials. A member of Gen Z is anyone born between 1996 and the early-mid 2000s (end date can vary depending on source).

What are the similarities and differences between Millennials and Gen Z? ›

Generation Z was born in 1995 and 2012, while Millennials were born between 1981 and 1996. In 2019 the oldest Millennials are turning 40, which means that they find themselves now entering into adult life, while Gen Z is now rising.

Why Gen Z is a better generation? ›

Gen Z is also the smartest and best educated generation. Having an unlimited wealth of information at our disposal has not gone to waste. In America, 57 percent of Gen Z is reported to have enrolled in a two-year or four-year college, compared to 52 percent of Millenials and 43 percent of Gen X.

What Gen Z and millennials are looking for in real estate? ›

“For Gen Zers, it's about affordability in the best neighborhood where they can enjoy their lives outside the home,” said Tanner. “It's more about where their friends live, and what neighborhoods have the best restaurants and social scenes, so they can easily find fulfillment outside their four walls.”

What does Gen Z want and expect from banking and wealth management? ›

Gen Z wants an omni-channel experience that lets them pick and choose how and when they access and manage their accounts and products.

What is the best way to market to Gen Z? ›

  1. 10 Tips for Marketing to Generation Z.
  2. They're digital natives, so marketers must act that way, too. ...
  3. Make the message quick, to the point, and in their language. ...
  4. Social media is important, but differs from Millennials' usage. ...
  5. Authentic experiences and two-way conversations are a must. ...
  6. Humanize your brand.

What does Gen Z want most? ›

Clarity into career paths and internal mobility opportunities. Gen Z is known as entrepreneurial and looking for a sense of ownership. They want to tackle exclusive projects that help them develop their skills, with nearly 1 in 5 Gen Zers stating they would stay at an employer that offers upskilling/reskilling.

Are millennials more financially literate? ›

Though life experiences, debt burdens, and frequent money decisions have left many Millennials quite stressed, The 2022 Investopedia Financial Literacy Survey found this generation is also the most confident and invested—literally—in their financial future.

Why does Gen Z save money? ›

There are two things that might factor into Gen Z's higher rate of savings, Ackerley said. For starters, they were more likely to be raised in households where no one was counting on a traditional pension. [T]he message is out there that you're on your own, that you need to start saving early.

What do Gen Z want from benefits? ›

Benefits and culture

As might be expected, health and retirement benefits are baseline expectations. On the retirement front, Gen Z is expecting to actively save for retirement, but we're finding that automatic enrollment into 401(k) plans is especially effective at getting Gen Z employees to save.

How does Gen Z feel about sustainability? ›

For Gen Z, sustainability is not just black and white. They understand that climate change is a universal concern and environmental justice is about saving the planet by saving people.

How does Gen Z make buying decisions? ›

Generation Z uses social media to seek inspiration, research products and connect with their favourite brands. Influencers account for a large part of the purchasing decision, make sure that your e-commerce is going from traditional digital marketing to influencer marketing.

What are two of the major causes for rising debt in the millennial generation? ›

Millennials are facing an ongoing affordability crisis. Numerous factors are to blame, including student-loan debt, the lingering impact of the Great Recession, and increased living costs.

Why is financial literacy important for millennials? ›

Not only that, it would help them be better equipped to reach their financial goals efficiently and mitigate their expenses through regulation. An improvement in financial literacy will have a positive impact on the entire population and would substantially enhance their ability to provide for their future.

What Gen Z can learn from millennials money mistakes? ›

Gen Z Should Start Saving Right Now

“One financial mistake that millennials tend to make is not saving enough for retirement,” Hamilton said. “Median retirement savings for millennials is only $23,000, compared to $64,000 for Gen X.

What are millennials looking for in a financial advisor? ›

One prevalent trend across all age groups rings especially true for Millennials and Gen Z — personalization. Two-thirds of Americans say a personalized financial plan based on their goals would be an important factor if they were considering a financial advisor.

Are Millennials open to taking financial advice? ›

The good news is that Millennials not only recognize the value of advice, but they trust their financial advisors almost much as they trust themselves.” The majority (66%) of Millennials work with a traditional advisor, or person, either solely (40%) or in combination with automated advice such as a robo advisor (26%).

What are millennials and Gen Z looking for in a job? ›

Young workers not only want better pay, they want previously less-popular benefits such as mental health care and four-day workweeks, according to three surveys by separate companies. And they want to work for a company that cares about personal and global ethics.

What strengths does Gen Z have? ›

Gen Z is the most technologically savvy to the older generations and can adapt quicker than most. 72% of Gen Z are creative and want to start their own businesses and they are able to multitask more than any other generation.

Are Gen Z good at saving money? ›

Broken down by generation, Gen Zers have the most confidence in their savings (69%), followed by boomers at 65%, and both millennials and Gen Xers at 60%. The research for BlackRock's “Read on Retirement” report includes input from 305 plan sponsors, 1,308 workplace savers, 1,300 independent savers and 300 retirees.

How is Gen Z related to globalization? ›

Analysis of the communication behaviour of the Z generation has shown that it is the result and part of the effects of globalization. It is influenced by strong global media pressure, which is caused by new information technologies and especially social networks, which are becoming more and more accessible to everyone.

What did Gen Z contribute to society? ›

Generation Z is also well known for using FaceTime instead of texting or calling, unlike previous generations and their utilization of social media and digital services. Generation Z truly live and breathe the virtual connection life, and it's extremely common to see them becoming social and product influencers.

What is important to millennials and Gen Z? ›

The Deloitte and Robin surveys both show that Gen Z and millennials want a better work-life balance, better learning and development opportunities, improved mental health and wellness support, and a greater commitment from businesses to make a positive societal impact.

Why is financial literacy important for Gen Z? ›

Gen Z needs to understand the big picture of personal finance and investing if they want to thrive. There's more to smart money management than just trying to avoid debt—and it is Generation Z's moment to learn it.

What would do you think are the positive impact of globalization to the millennial generation today? ›

This important aspect of globalization affords Millennials an unprecedented level of exposure, allowing them to innovate new solutions to long standing problems in arguably more creative and visionary ways than has been done in the past.

How can we make future generations ready to face globalization? ›

But here are some practical priorities we can focus on today to prepare for tomorrow.
  1. Invest in strengthening local and regional economies. ...
  2. Innovate educational institutions and aggressively close the skills gap. ...
  3. Focus on the most vulnerable populations. ...
  4. Stop climate change. ...
  5. Build a movement focused on equity.
5 Nov 2018

What technology did Gen Z grow with? ›

They have literally grown up with digital devices. Broadly speaking, they may have never known a time without high-speed internet, and a world of information, entertainment, and content options at their fingertips.

What is Gen Z most interested in? ›

Art and Music / Playing an instrument are top hobbies for Gen Z and Millennials that are included in both their top five rankings.


1. Webinar: Financial Well-Being - how to develop a program and measure success —
2. Proper Retirement Allocation
(Jill on Money )
3. Evolve or Dissolve: Rethinking What It Means To Be A Financial Planner [Ep34]
(Innovating Advice)
4. How to Raise Capital for an Impact Startup: Best Practices from VCs & Founders (August 2022)
(Founder Institute)
5. Young Money Bootcamp: Digital Finance for Millennials
(Elliot Volkman)
6. Tax Planning Strategies And Current Economic Situation with Gabriel Shahin
(Virtual US Financial Advisor)
Top Articles
Latest Posts
Article information

Author: Corie Satterfield

Last Updated: 12/22/2022

Views: 5772

Rating: 4.1 / 5 (42 voted)

Reviews: 89% of readers found this page helpful

Author information

Name: Corie Satterfield

Birthday: 1992-08-19

Address: 850 Benjamin Bridge, Dickinsonchester, CO 68572-0542

Phone: +26813599986666

Job: Sales Manager

Hobby: Table tennis, Soapmaking, Flower arranging, amateur radio, Rock climbing, scrapbook, Horseback riding

Introduction: My name is Corie Satterfield, I am a fancy, perfect, spotless, quaint, fantastic, funny, lucky person who loves writing and wants to share my knowledge and understanding with you.