Gen Z says they have it harder than their parents did — and the economy is to blame (2024)

FAQs

Gen Z says they have it harder than their parents did — and the economy is to blame? ›

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.

Young members of Gen Z are struggling more financially today than Millennials did at their age 10 years ago, according to a new study published last week by the credit reporting agency TransUnion.

Gen Zers are reporting higher rates of anxiety, depression, and distress than any other age group, according to a 2022 McKinsey study. The same study found that Gen Z was the least likely cohort to seek out medical care for those conditions because behavioral health care is too expensive.

Gen Z is in the financial trenches. A new study from credit reporting agency TransUnion found those in their early 20s are earning less, have more debt and see higher delinquency rates than Millennials did at their age.

Though the challenges facing Gen Z are unique, issues with their parents often boil down to age-old “difficulties in communication, boundary setting and honesty, often rooted in fear, whether it be fear of judgment, fear of failure, fear of harm or even fear of change,” Efron said.

Not just growing pains: Gen Z reports suffering more than other generations did at their age. A new study from Gallup shows a crushing youth mental health crisis, because teens are more tuned in than ever.

At the core of both quiet quitting and resenteeism are common themes: burnout, feeling undervalued, and feeling unfulfilled.

Technology dependency and adaptation challenges:

While Gen Z is often viewed as tech-savvy, their heavy reliance on technology can pose challenges in adapting to environments where technology is limited or where different systems are in place.

More than half of employers surveyed said Gen Z candidates struggle the most with eye contact during interviews. Candidates in this age group also ask for unreasonable salaries and have dressed inappropriately for in-person interviews, according to about half of the study respondents.

Which generation has the least debt? ›

Americans collectively owe over $1 trillion in credit card debt, with members of Generation X, on average, owing the most and Gen Zers owing the least, CNBC.com Make It reported.

Gen X (ages 43 to 58) not only carries the most debt on average of all the generations, but is also the debt leader in credit card and total non-mortgage debt.

While Gen X may not have taken out as much student debt as Gen Zer's have had to, they're the generation shouldering most of the nation's outstanding debt. As of 2021, the average Gen Xer had $46,317 in student loan debt. 1.4 million Gen Xers between ages 35 and 49 carry over $500 billion in student debt.

Today, used in such convoluted phrases as “mother is mothering,” the words are used to indicate a person who has reached the highest degree of excellence.

Of nearly 2,000 Gen Zers asked in a Business Insider survey what they saw as an important goal to achieve within the next five years, 72% said financial security and 27% said starting a family. I don't blame them for choosing to prioritize a solid financial standing rather than becoming a parent.

Gen Z parents want to use less physical discipline and be less strict than their parents were with them. This generation overwhelmingly agrees that trust is the strategy that is most effective in protecting their kids from the perils of the outside world, rather than discipline.

Seeking Deals and Lower Prices. Gen Z's buying habits are evolving as they enter adulthood. Though they once owned up to impulsive shopping habits, Gen Z is now more budget-conscious. This is likely due to inflation, a difficult job market, and greater financial insecurity.

A Forbes Advisor survey of more than 1,000 millennials and Gen Zers in January 2023 pointed to these top five topics: investing in stocks and bonds (57%), personal budgeting (51%), passive income (49%), reducing debt (40%) and building or improving credit (37%).

Generation Z's Savings Account Balances

Although Gen Z is the least likely of any generation to have $100 or less in a savings account, Gen Zers are still likely to have relatively low savings overall — 56% of Gen Z has $1,000 or less in savings.

Millennials could stand to inherit trillions worth of property and property assets passed down by ancestors in the next 20 years. Millennials could potentially become the wealthiest generation ever, according to estate agent Knight Frank's 2024 Wealth Report.