Gen Zers are still in the early stages of their careers and personal finance journeys, but their financial habits are already proving to be radically different from those of their predecessors. With heightened levels of anxiety about the future grounded in very real socioeconomic and environmental issues, Gen Zers are reconfiguring their approach to money. <\/p>\n
For those beacons of anti-capitalism and pivotal figures in the Great Resignation, financial success in the age of \u201clate-stage capitalism\u201d looks very different from how other generations may have defined it.\u00a0<\/p>\n
Gen Zers have encountered their own set of unique challenges entering the workforce at a time of global societal uncertainty. From graduating during a global pandemic to current fears around inflation, wage stagnation, growing inequality, and an impending recession, many feel that the cards are stacked against them. A recent study by Fidelity Investments found that 45% of people ages 18 to 35 \u201cdon\u2019t see a point in saving until things return to normal.\u201d In that same age group, 55% said they put retirement planning on hold during the pandemic.<\/p>\n
The future doesn\u2019t look much better. With growing anxiety around climate change and the deterioration of traditional safety nets like Social Security, there is a general air of unease amongst many Gen Zers.<\/p>\n
Almost a quarter of Gen Z respondents in a McKinsey study said they do not expect to retire, and only 41% expect to own a home one day. This may be because they\u2019re young, and such financial goals seem too far away to properly comprehend\u2014but national statistics support the fact that traditional milestones like home ownership and retirement are increasingly unattainable. The typical first-time buyer was 36 years old in 2022, rising from 33 in 2021, an all-time high. Coupled with rising student debt, it makes the \u201cAmerican dream\u201d ever less achievable for young people.<\/p>\n
When it comes to financial wellness, Gen Zers place less emphasis on the financial <\/em>than on the wellness. <\/em>Unlike previous generations, they\u2019re unwilling to stick it out at a toxic job or forgo travel and experiences in favor of padding their savings.<\/p>\n The traditional markers of financial success\u2014from owning a home to snagging that corner office at work\u2014are becoming not only less attainable but also less valuable for Gen Zers.<\/p>\n Mental well-being, personal growth, and fulfillment are being reprioritized ahead of financial gain: 73% of Gen Z would rather have a better quality of life than extra money in the bank, and 66% are only interested in finances as a way to support their other interests in life.<\/p>\n Gen Zers are increasingly looking for ways to prioritize quality of life over financial achievement at all costs. The TikTok trend of \u201csoft life\u201d\u2014and its financial counterpart \u201csoft saving\u201d\u2014is a stark departure from their millennial predecessors\u2019 financial habits, which were rooted in toxic hustle culture and the \u201cGirlboss\u201d era.<\/p>\n Some young people have adopted a sort of financial nihilism as a response to deteriorating economic conditions, eschewing traditional capitalist norms for ones that are decidedly more self-serving and self-indulgent.<\/p>\n New and often controversial lifestyles are proliferating on platforms like TikTok, such as \u201cbimbo culture\u201d and \u201cstay-at-home girlfriends.\u201d The hashtag \u201c#Bimbofication\u201d has garnered over 275 million views on TikTok. Meanwhile \u201csugar daddy dating\u201d reportedly spiked 74% on the platform SeekingArrangement during the pandemic.<\/p>\n Increasingly popular with Gen Z audiences, manifestation content has also spread rapidly on platforms like TikTok and Instagram\u00ad\u2014the latest iteration of the \u201claw of attraction\u201d that promotes the use of \u201cpositive frequencies\u201d and \u201cdelusional thinking\u201d to attract wealth and prosperity into one\u2019s life. Rather than claw their way up the corporate ladder or surreptitiously stash away money for the future, practices like project 129 and the 3-6-3 method emphasize positive thinking and visualization to achieve personal and financial goals.<\/p>\n Some Gen Zers are reacting to the seeming financial downfall of society by simply doing nothing. Distraction by way of living in the moment and enjoying life has become a popular coping mechanism for those looking to avoid the ills of late-stage capitalism.<\/p>\n Growing lifestyle practices like radical rest promote the importance of disconnection with traditional ideals of success and reconnecting with your own well-being by way of self-care and repose. The practice of doing nothing as resistance has taken hold among young people in China as well, through the simple act of tanping\u2014or \u201clying flat.\u201d Examples of this \u201cradical\u201d ideology include not getting married, not having children, not buying a house or a car, and refusing to work extra hours or to hold a job at all. <\/p>\n The new attitudes among this cohort will have a lasting impact on every industry. It\u2019s too soon to tell what the effects of reshaping financial goalposts will be\u2014but not too soon to start preparing.<\/p>\nCashing in\u2014and checking out<\/h2>\n