Are you creating home buying lesson plans to teach Generation Z about homebuyer education?
Gen Z is high-tech, collaborative, and independent. This generation is seeing 3D printers and driverless cars. They grew up with technology and are digitally advanced. When it comes to personal finance for K-12 students, research suggests we can help our Gen Z students by teaching them finance now.
Here are a few things to keep in mind as you build home buying lesson plans to educate Gen Z students about home ownership and future possibilities.
What Generation Z Looks Like
Generation Z is made up of talented, tech-savvy young people born between 1996-2009. In helping Generation Z understand homebuyer education, there are a few things to know about Generation Z:
- They’re not afraid to spend money.
- They research their purchases.
- They don’t want to carry debt the way their parents did. Hence, they want to secure a good job early and pay for a home instead of renting.
- They don’t want credit card debt or student loans. And they don’t want to live paycheck to paycheck.
- They’re willing to forego new clothes, smartphones, and social media to own a car outright.
- They prefer experiences over products.
Generation Z has about $44 billion in spending power. Because they take pride in and put great weight in ownership, this generation will begrudgingly lease or rent. And, these are great aspirations for young people that don’t want to carry debt.
Offer Feedback and Make it Challenging
Generation Z looks up to their teachers. They want to be nurtured. And, they want helpful feedback. When exploring topics like renting vs. owning, they look to see who can come up with the answers the fastest. Give praise for fast answers, but also explain better alternatives.
Example 1: A student says they will live and work in Manhattan or San Francisco. But, rents might run $2,000 per month. Ask for ideas on how to reduce the rental amount until they can buy, i.e., roommates. Or, move to a cheaper area.
Example 2: Ask the students to each find a home they want to purchase. Have them calculate their full monthly expenses with their mortgage. Walk them through the differences between a balloon payment versus a fixed rate mortgage. Talk about PMI insurance options, refinancing, and home equity.
Questions to ask: What if there’s an emergency in the family? What if there’s a job loss? The death of a spouse? These are all ways to pique their interest and help them think about long-term goals and why they should have emergency funds and savings.
How can you offer faster feedback that guides Generation Z?
Have a Q&A and let your students ask questions. If topics drift, that’s okay. Some students may try to push your buttons, but show your patience, flexibility, and friendly humor. And, then get back to the topic at hand.
Teaching Strategies for Generation Z
Generation Z is the first generation that didn’t grow up without technology. They don’t know about rotary phones, pagers, or typewriters. Or, AOL dial-tones to access the internet. Imagine that! These are quick learners that are used to accessing information instantly.
To create teaching strategies that meet their needs:
- Remember, this demographic sees technology as a part of their existence, not just a tool.
- They may have an over-reliance on technology. They might not be able to differentiate fact from opinion.
- They are ambitious and use technology in every aspect of their lives. It’s ingrained in their psyches.
The Flipped Classroom Model
Influencing the Generation Z learner may require a flipped classroom model. The flipped classroom style will make them more reliant on themselves. Gen Z can feel a bit insecure unless they work in groups. In a group, partnership or social setting, they are more collaborative and confident. They can rely on each other for responses. Non-linear, real-world experiences can work better than lecture-style instructions.
As you think about homebuyer education lessons for Gen Z students, how can you create flexible lessons to mix up the content and offer them more ownership?
Break Up the Time
To keep them engaged:
- Teach in smaller increments of time.
- Have 15-20 minutes of discussion followed by time for internet research.
- Establish the schedule ahead of time (so they know there’s a reward).
- Let them work in small groups so they can bounce ideas off friends. Let some students be potential home buyers and let some students represent the bank.
- Offer rewards. The team with the highest points wins, earning 5-points on the next quiz.
Do it Digitally
Because Generation Z is tech-savvy, let them get online:
- Have them each find a dream home.
- Then explore salaries. If students are interested in a million dollar home, explain why they need to get pre-qualified.
- Let them use real estate calculators from bank websites.
- Walkthrough “how much” house they can actually afford.
- And, explore the benefits of a cheaper starter home. This will help them understand the steps to homeownership and how to set long-term goals.
- Explore rental properties, investment properties, and tax incentives.
Empower by Example
Let your students lead the class. And ask them to map out a future home they would like to purchase. Have them give the price and outline other expenses like homeowner’s insurance and other bills.
Questions to ask:
- How much income will they need to afford their new home and lifestyle?
- How much income will they make in their first few jobs upon graduation? (This can help them understand why they may have to rent before they can purchase a home.
- How many YouTube videos would they need to create to become successful?
- What if they or their spouse lose their job? What’s the backup plan?
Generation Z wants to be part of the learning process, They love the idea of ownership instead of debt and that opens the door for homebuyer education. Gen Z is driven by the idea of ownership and we can create and cultivate better learning opportunities for them. Crafting effective home buying lesson plans to share homebuyer education tools with these resourceful minds can create rewarding experiences. And, Gen Z can achieve their personal goals and feel more fulfilled.