New Policygenius survey shows younger Americans are also more likely to try viral "hacks" and turn to social media for financial adviceNEW YORK, April 9, 2024 /PRNewswire/ -- When it comes to wealth, younger Americans — specifically millennials and Gen Z — have some catching up to do, especially considering adult members of these generations own just 74 cents for every $1 of wealth that baby boomers owned at the same age.New data released today shows that together Gen Z (ages 18-26) and millennials (ages 27-42) are almost equally likely to own cryptocurrency (21%) as they are to own real estate (20%). They are also more likely to try financial "hacks," often popularized on social media. In fact, 62% of the members of these younger generations have tried at least one of the six financial hacks we asked about in the survey, with the "no spend challenge" the most popular with Gen Z (21%) and almost two in 10 millennials (19%) having tried extreme couponing. Only 36% of Gen X (ages 43-58) and baby boomers (ages 59-77) have tried any of the financial hacks — maximizing credit card rewards was the most popular hack for these generations (21% and 19% respectively).New survey shows younger Americans — specifically millennials and Gen Z — have some financial catching up to do. Post thisThe 2024 Policygenius Financial Planning Survey found that the feelings different generations have about their finances vary greatly as well, with around three-quarters of baby boomers (78%) saying they feel at least somewhat proud of their finances, compared to 70% of millennials and 64% of Gen Z.The survey also found that:Gen Zers are more likely to own cryptocurrency (20%) than they are to own stocks (18%).than they are to own stocks (18%). 14% of Gen Z have tried " infinite banking " — a term for borrowing against the cash value of a whole life insurance policy." — a term for borrowing against the cash value of a whole life insurance policy

Well-known financial adviser Suze Orman shared an essential insight on her podcast: the critical importance of fully understanding financial products before investing."It's better to do nothing than something you don't understand," she said.Orman raises concerns about a trend where individuals are investing in complex life insurance policies — such as whole, universal and variable life insurance — without a complete grasp of the consequences. She has observed an increase in listener inquiries about life insurance policies, indicating a broader lack of understanding of these financial products.Don't MissThe average American couple has saved this much money for retirement — how do you compare ?Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.Orman explains that life insurance is generally aimed at younger people who have not yet built substantial wealth and have dependents. However, the need for such insurance decreases as your financial situation improves with age. Despite this, many are enticed by the appealing, though misleading, idea of benefiting from an investment and life insurance simultaneously.Orman uses detailed examples to point out the drawbacks of these investments, including instances where people were misled about the returns they could expect. She notes that the optimistic projections offered by insurance agents often fail to match guaranteed outcomes, posing a risk of financial loss.“You are being told by some insurance agent that you can have your cake and eat it, too," she said. "You cannot

As baby boomers age, an inheritance wave dubbed the "great wealth transfer" is underway. What’s also ahead: a great debt transfer that will have to be managed by younger generations of Americans.More than 46% of Americans expect to transfer debt on death to their loved ones, according to a survey by PolicyGenius. The average American household owes $10,000 in credit card debt, $58,957 in student loan debt, $241,840 in mortgage debt, and $22,612 in auto loans."Debt does not miraculously disappear when someone passes away, and any outstanding debt is paid out of assets like property, retirement accounts, and bank accounts," Rosalyn Glenn, a financial planner for Prudential, told Yahoo Finance. "If you have assets, your debt can be transferred at death, and if you don’t have a plan for managing the debt, you leave your family at risk."As many make New Year's resolutions about their health, it is a good time to check the state of your wealth — especially life insurance coverage — so instead of transferring debt to loved ones, your legacy is one of financial stewardship and wealth building."Unfortunately, there have been cases where families were displaced because of the loss of income and the inability of the surviving spouse to maintain the mortgage on a single income," Glenn said.Life insurance to mitigate transferring debtAmong the share of Americans who expect to leave debt behind when they die, 21% do not have life insurance, PolicyGenius found."One of the advantages of life insurance is it provides security in case a loved one dies and leaves you responsible to pay any jointly owned debt, such as a mortgage," Shardéa Ages, a certified financial planner at Collective Wealth Partners, told Yahoo Finance. "And the best part is that life insurance proceeds are tax-free, in most cases."When it comes to student loan debt, much depends on whether the debt is federal versus private loans.Story continues"Federal student loans are forgiven upon the death of the borrower, but some types of student loans issued by private lenders can be passed onto loved ones upon the death of the borrower, especially if the loan was co-signed," Jessica Ruggles, corporate vice president of financial wellness at New York Life, told Yahoo Finance.Disparities in wealth — and debtThe PolicyGenius study found that households with more than $150,000 in income had more debt than lower-income households, but higher-income households were better prepared to help loved ones pay off those debts. Only 13% in the higher income group had no life insurance, compared to 31% of lower income households.The study also found racial disparities in debt, which contribute to the racial wealth gap, noting "Black and Hispanic Americans have a harder time accessing credit to make larger purchases, like real estate, that can help them build wealth and pass it down to future generations."Homeownership and life insurance proceeds are generally how most people pass on generational wealth to family members.Jason et Shannon Phleger look at the damage in their property after the floods in Boulder Creek, California on January 16, 2023