53% of Gen Z believes small daily purchases have long-term effects on their financial security, study says

There isn't just one correct way to manage your finances, especially since everyone's financial circumstances and goals are different. Even so, many people do find it helpful to draw inspiration for managing their money from advice that's become popular over the years, such as cutting out expenses you don't use and redirecting that money toward the things you actually love.

In other words, it's fine to spend money on simple pleasures like your favorite iced coffee every now and then, as long as you remember to get rid of that gym membership you never use or any other things that no longer bring you joy.

That said, a recent report based on Northwestern Mutual's 2022 Planning & Progress Study found that 53% of the Gen Zers surveyed felt that making small daily purchases — such as that favorite cup of coffee — will have a long-term impact on their finances. The report also found millennials were just about on par with Gen Zers, with 52% of them sharing the same sentiment.

Many of the money moves we make today can impact the financial future we want to have. This idea, though, seems like somewhat of a double-edged sword.

On one hand, it feels empowering and even exciting to think that a brighter financial future lies ahead of us. On the other hand, the realities of a rising cost of living, high amounts of student loan debt and other factors are contributing to a widespread concern that people are currently unable to make sufficient positive money moves to get them closer to their financial goals.

If you're worried about what the future holds for you financially, one of the best ways to feel a little more prepared is to keep your financial bases covered at all times. This includes having an emergency fund and continuing to pay down any debt as well as maybe getting your feet wet with the stock market.

Build your emergency fund

Having an emergency fund can help to offset any unexpected expenses that could otherwise jeopardize your overall financial health. For example, you could use the money stashed in an emergency fund to replace a damaged car part or pay for a last-minute medical procedure. Emergency funds can also help you make ends meet in the event you're laid off from a job with little to no notice.

Keeping your emergency fund in a high-yield savings account such as a Marcus by Goldman Sachs High Yield Online Savings account or an Ally Online Savings Account can also help your balance grow a bit faster since you'll be paid interest on a monthly basis just for keeping a balance.

Even if you're only able to contribute $20 a week to your emergency fund, something is better than nothing. If you set up automatic weekly transfers from your checking account to your emergency savings account, you'll be building your emergency fund without even thinking about it.

Pay down debt

While you might use debt to acquire an asset or opportunity, such as taking out a mortgage for a house or a credit card to fund a move to a new city for a job opportunity, paying down your balance can help you feel a little more financially comfortable.

Paying down debt also allows for a little more flexibility in the face of tough circumstances. For example, if your credit card limit was $5,000 and you were carrying a $4,500 balance, you would only have $500 left to float the cost of an unexpected car repair or roof leak if you didn't have an emergency fund to pull from. If, however, you were to pay off that balance, you would have even more room to cover necessary expenses if your emergency fund won't suffice.

Many people choose to pay down debt by using the debt snowball method or the debt avalanche method. The popular debt snowball method involves eliminating the smallest debt balance first while paying just the minimum on your other debts. That way, seeing the smaller balances disappear keeps you motivated as you work your way up to the largest balance.

The debt avalanche method, meanwhile, involves eliminating your highest interest debt first while making minimum payments on the others, and working your way down to the debt with the lowest interest rate. This method helps you save the most on interest charges.

Get some skin in the stock market

Only keeping your money in a traditional savings account means that your cash is losing value every year to inflation. Investing that money instead can help it grow over time even when you aren't contributing additional dollars to your balance — depending on what assets you choose to invest in, it could also outpace inflation.

Of course, that's not to say you should only invest your money — keeping some of it invested and some of it in an accessible savings account will help you avoid having to dip into your investments to pay for a large expense. If you're already retired, having cash reserves to fund your living expenses during an economic downturn can give your investments a little time to rebound before you withdraw from them.

If you're stressed about not having much room in your budget to invest right now, you might want to consider using an app like Acorns, which allows users to invest the spare change that's left over from their everyday purchases such as food and clothing. In other words, you can still invest small amounts of money just for buying the things you need to buy anyway.

Of course, only investing your spare change likely won't provide a substantial amount of investment cash each month, but it's a good way to start building your confidence with investing. That way, if and when you have a windfall of cash or move into a higher paying position, you can start investing even more money.

You can also consider making small automatic contributions to a Roth IRA through a brokerage like Fidelity. These tax-advantaged accounts are great for retirement, can help you build up wealth over the long term and minimize your taxes when you make withdrawals.

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Disclosure: NBCUniversal and Comcast are investors in Acorns.