What are the financial problems with Gen Z?
Gen Zers face greater obstacles to financial success
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.
Gen Z's Unique Financial Perspective: As digital natives, Gen Z views money as a means to connect with others and share experiences, rather than solely for earning and spending.
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.
Instead, they're grappling with alarming rates of loneliness, depression and suicidal thoughts. Zoom in: Partly by choice and partly out of necessity during the pandemic, Gen Z socializes online, rather than in person, far more than previous generations. That's not healthy, experts say.
Financial literacy tends to be low within each of the five generations, but particularly so among Gen Z. Two-thirds of Gen Z could answer only 50% or less of the index questions correctly.
Generation Z can experience negative emotions such as anxiety, strangeness, and panic when absent from one's device or experience feelings of being afraid due to not knowing what everyone else is doing (Vincent, 2006).
In many ways, Gen Zers are better off than their parents were 30 years ago, but fewer are financially independent — here's why. Compared with their parents at this age, today's young adults are more likely to have a college degree and work full time, according to a recent report by the Pew Research Center.
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.
How Gen Z and Millennials Differ With Money Habits. Even though both generations value saving money, Gen Z is far ahead of millennials in terms of how much they're putting away. According to Finder's Consumer Confidence Index, Gen Z saves an average of $857 per month, while millennials save $294.
Do Gen Z think they will be rich?
A staggering 75% of Gen Z high-net-worth individuals expect to see their wealth increase in 2024. Of that group, 43% even expect to see "significant growth." What's more, Gen Zers aren't just feeling confident about their financial game in 2024—they stand out as the most self-assured generation of all.
Key Takeaways
While the bulk of Millennials (73%), Gen Xers (57%) and Gen Zers (55%) report growing up in families that talked about money, just 41% of Baby Boomers did. Most respondents have learned valuable financial insights by having open conversations about money. Millennials (68%) and Gen Zers (63%) led the pack.
A new survey of 2,000 Gen Zers from the writing platform EduBirdie reveals that while work-life balance and enjoyment are important goals, cash remains king. A full 31% of respondents said their main career aim is to make lots of money.
There is no shortage of potential culprits: the cost of living crisis, the Covid lockdowns, the wars in Ukraine and Gaza, the long-term effects of austerity, the climate crisis, pressure in schools, prejudice against minorities, the rise of social media and smartphones, the evaporating high street and the growing ...
This belief stems from a variety of factors, but a major reason is the current job market. Minimum wage is largely stuck at the same as it was 13 years ago and Gen Zers don't believe the pay they get for the work they do allows them a good quality of life, the McKinsey study cites.
From issues like discrimination and human rights to personal safety and violence, it's all stressful to younger Americans. But, like their older counterparts, health- and finance-related concerns topped the list of stressors.
McKinsey research indicates that Gen Z is willing to spend on experiences that enrich their daily lives (though how they determine what enriches their lives, like spending on wellness and self-care, differs from previous generations).
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.
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.
Generation Z is known for Being resourceful
Because they are finding their answers, they are doers and activists—they jump in and do—which means they may ask for your forgiveness rather than your permission. Gen Z, the children of Gen X, value self-reliance and independence and are self-directed.
What are Gen Z most likely to buy?
Of all the generations, Gen Z is most likely to spend on brands they love, with 64% indicating they would pay more to shop with brands they're loyal to, according to Cheetah Digital.
Gen Z spending habits show they care the most about fashion, makeup and beauty products, technology, and their pets. This is perhaps due to their young age and few major bills.
They're saving earlier than generations before them, making long-term money goals, and becoming financially independent sooner. While still having big career aspirations, they're more conscious about making sure to find a job soon after college to avoid the burden of student loan debt.
Almost seven-in-10 respondents say inflation is outpacing their salary or wage growth. But inflation doesn't explain everything. Financial advisors says it makes sense that older millennials are the most financially anxious, as they have come up against some famously challenging economic circ*mstances.
The report said, "Though Gen Z is interested in exploring and learning about saving and investing, the approach is much softer than in previous decades – it's all about personal growth and mental wellbeing in the now, and they would rather feel more fulfilled now than save for a future that is unknown."
