Are Gen Z motivated by money?
Through a compilation of Gen Z interviews and studies from Bain & Co, CFA Institute, EY, and others, the article concludes that the youngest generation in the workforce is motivated by competitive compensation and quick career growth, and is quick to move on to other opportunities if they don't get that.
According to recent data from a 2023 Pew Research Centre survey, Gen Z is more financially independent at a younger age than prior generations. While still in school, a sizeable proportion of Gen Zers work part-time, freelance, or have side hustles.
Gen Z is often motivated by a sense of purpose and may be drawn to jobs and companies that align with their values and beliefs.
Young adults are big spenders and big savers. And even with economic uncertainty and stress, the Gen Z generation is not paralyzed by money decisions.
Generation Z is very receptive to digital banking services, online investing platforms, and other fintech advances. They have a strong preference for mobile banking and digital transactions, favouring them over traditional means.
The study's Gen Z respondents reported an obsession with being rich at 44 percent, while millennials were just a tad more likely to be obsessed at 46 percent. This is compared to just 27 percent of the larger American population obsessed with being rich.
It's about how they manage it. Gen Zers have shown they are thinking ahead when it comes to managing money. They are budgeting, saving, and planning for their financial futures. These habits, combined with increasing income over time, lay a strong foundation for growing wealth.
Gen Z values experiences and purposeful purchases. They're more likely to spend on travel, events, and unique experiences that create memories. And when it comes to products, they're all about brands that align with their values. Gen Z is known for their love of sustainable, ethical, and socially responsible companies.
- Terrorism and War.
- Social Networking.
- Smart Phones/Mobile First.
- Great Recession.
- Text Messaging.
- Gun Violence.
- Election of Barack Obama.
- Shared Family Responsibilities.
Gen Zers generally have strong values related to racial justice and sustainability. Mobilizations like the Global Climate March, led by Gen Z activist Greta Thunberg, thrive on the activism of young people. Climate change is one of the issues Gen Zers care about most.
Why is Gen Z struggling financially?
More than half, or 53%, of Gen Zers say higher costs are a barrier to their financial success, according to a separate survey from Bank of America. In addition to soaring food and housing expenses, millennials and Gen Z face other financial challenges their parents did not as young adults.
When Gen Z were asked what prize type would motivate them to enter a promotion, the most popular answers were money (57%), free products/services/experiences (41%), discounts (39%) and free content (22%). This is pretty much in line with Nat Rep however, Gen Z over index when it comes to free content.
Mental Health Challenges: Stress, Anxiety, and Depression
Generation Z is grappling with stress levels that surpass those of previous generations. One undeniable catalyst for the surge in stress among Generation Z is the relentless academic pressure they endure.
Gen Z's Philanthropic Potential
The good news, however, is that this limitation doesn't deter them from contributing to causes they care about however they can. “[I]n 2022, Gen Z adults made an average of 5.3 donations — notably more than the 4.8 made by millennials and 4.7 made by Generation X.”
A prime culprit: higher expenses that have limited their ability to put money aside for savings and investments. Only 11% have enough savings to cover the cost of living for more than a year if they had no income, while 48% cannot cover more than two months' worth of expenses, according to the report.
Their comfort with technology and widespread access to investment information online have likely contributed to this proactive approach to growing their wealth. More concern over job security: While generations before them are more likely to cite being in debt as a major stressor, Gen Z is less likely to do so.
Gen Z Struggles With Mental Health
Social media, which many Gen Zers have used for most of their teenage and adult life, exacerbates these issues — no other generation has had such immediate and unfiltered access to the news for most of their lives, which can lead to stress, anxiety, and other mental health issues.
While they want to do their job well, they're wary of tying their identity to work and how much they work. The prevalence and acceptance of side hustles is born from the idea that Gen Z doesn't derive self-worth exclusively from performance at work, as many previous generations of professionals did.
Gen Z is richer than just a few years ago—and much richer than their parents at the same age—but everything costs more and they have more debt, Pew study reveals. Gen Z is making more money than their parents at their age, but they still have to deal with higher costs of buying a home and college.
Gen Z is known for being resourceful, independent learners who value diversity and inclusive culture and place a priority on well-being and mental health in the workplace. They are fiscally conservative with a keen focus on investing and income.
How long will Gen Z live?
It is a known fact that lifespan increases with each generation. For baby boomers, the average life expectancy is 70 years, for Gen X its 85, and newer generations like Gen Z and Alpha will likely exceed the 100-year mark.
The most trusted institutions are Science, the military and the medical system. Similarly, fewer than one in four Gen Z members trust the information they find on the internet, the U.S. Supreme Court and the criminal justice system. Science garners the most trust, at 71%.
As for the reasons why millennials and Gen Zs are feeling stressed, the survey found that financial insecurity is one of the leading causes, with two-thirds of respondents saying that they often worry about their financial situation.
Calling the findings about the emotional struggles of Generation Z young adults "alarming," the researchers said 29% of them reported experiencing depression, versus 15% of teens; 36% of young adults reported anxiety, compared to 18% of teens.
They are pragmatic and value direct communication, authenticity and relevance. They also value self-care. They may be more likely than older people were when they were the age of the Gen Zers to question rules and authority because they are so used to finding what they need on their own.
