Gen Z And Millennials Are Turning To AI For Financial Management
AI has changed the world in the last five years. More people are embracing ChatGPT and other tools to make their lives easier and more convenient.
But did you know you also could use it to better manage your finances?
A recent study by Experian shows that 67% of Zoomers and 62% of Millennials use AI to help them manage different parts of their finances, like investing, saving, and budgeting.
And given that almost all of them had a positive experience using these tools, this trend shows no signs of slowing down anytime soon.
Let’s look at this recent shift and see how it can impact your finances.
Why Is This Shift Happening?
In short, AI’s explosion has affected virtually every major industry, even personal finance.
But the AI revolution alone isn’t the only reason for this shift. According to Chistina Roman, consumer education and advocacy manager at Experian, “Consumers are hungry for information and resources to improve credit scores and overall financial health.”
With a global pandemic and price hikes in recent years, more millennial and Gen-Z Americans are feeling the financial stress and looking for ways to stretch their dollar further.
And if these new AI software and tools are genuinely helping people reach their financial goals faster, expect them to become even more popular in the next couple of years.
How AI Makes It Easy To Manage Your Finances
So, how exactly does AI software help you manage your money? Here are a few ways:
You Have 24/7 Access To Advice
No machine can fully replace a human financial advisor that can empathize with you and create the best possible strategy — at least not yet.
But what if you have an important question and can’t reach them?
This is where your robo-advisor comes in. Tools like Betterment can help you customize your investment plan. Many of these platforms also provide plenty of educational resources to answer questions and build your financial knowledge whenever needed.
It’s Affordable
Financial advisors can charge up to $300 an hour, excluding commissions or fees.
While it might make sense if you have a six or seven-figure net worth, most Americans simply don’t need something that expensive.
With AI tools, you get all the personalized help you need while paying a fraction of the cost. Plenty of free or cheap platforms can help you manage anything from taxation to investment planning.
More Personalization
There’s a ton of info available on how to manage finances. But AI helps you take everything one step further by customizing a financial plan specific to your needs, wants, and goals.
Take a popular platform like ChatGPT, for example. With a few short prompts, you can quickly build an entire budgeting or investment plan from scratch.
Over time, these platforms can grow alongside you and quickly adapt to your financial situation.
What Type Of AI Tools Can I Use?
A quick Google search gives you countless pages of AI finance platforms. But if you don’t want to get overwhelmed with too many, here are a few essential ones to make your life easier:
Tax Prep Software
Gone are the days of paying thousands for an accountant to get things done.
AI-powered tax preparation platforms make filing your taxes a breeze by guiding you through the whole filing process. You can also find deductions and tax credits much faster, saving you thousands of dollars annually.
Popular Apps & Platforms
Robo-Advisor Platforms
Are you new to investing or simply don’t want to spend thousands on a financial advisor? A robo-advisor could automatically manage your nest egg with the click of a button.
These platforms can automatically create an initial portfolio based on your goals and risk tolerance. You can manually adjust it from there as you become more familiar with the stock market or spot a better opportunity.
Overall, robo-advisor platforms give you a safer and easier way to invest and protect your assets.
Popular Apps & Platforms
Budgeting Apps
Sometimes, seeing everything in your bank account alone won’t be enough to give you an idea of where your money’s going.
But a reliable AI budgeting app gives you a complete picture of your finances each month. Most of these platforms also give you tips and resources on saving, making it perfect if you’re on a strict budget and want to build better habits.
Popular Apps & Platforms
The Bottom Line
AI is completely transforming the way Millennials and Zoomers are approaching finances.
From doing taxes to planning your retirement, AI-powered apps make managing everything much easier. Even someone with the most basic financial literacy skills can get the hang of these apps and take control of their finances without a problem.
While they might never completely replace financial experts, AI-powered software levels the playing field and could give you exactly what you need to reach your goals!
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