Gen Zers are approaching their careers and personal finance differently from previous generations due to heightened anxiety about the future. They face unique challenges in entering the workforce, including graduating during a global pandemic and fears about inflation, wage stagnation, and growing inequality. Many Gen Zers are delaying saving and retirement planning. They also express concerns about climate change and the unattainability of traditional financial goals like home ownership and retirement. Gen Zers prioritize mental well-being, personal growth, and fulfillment over financial gain, and are less willing to stick with toxic jobs or sacrifice experiences for savings. Some have adopted alternative financial lifestyles, while others practice financial nihilism or seek distractions from late-stage capitalism. These changing attitudes will have lasting impacts on various industries.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Gen Z’s financial habits differ from predecessors | Shift in financial approach | More emphasis on financial wellness, less focus on traditional markers of success | Heightened anxiety about the future and desire for personal well-being |
| Gen Z’s economic outlook is bleak | Uncertainty about the future | Decreased retirement expectations, lower home ownership rates | Global societal uncertainty and fears about inflation, wage stagnation, and growing inequality |
| Financial wellness prioritized over financial gain | Reprioritization of well-being over money | Focus on mental well-being, personal growth, and fulfillment | Desire for a better quality of life and support for other interests |
| Financial nihilism and self-serving lifestyles | Rejection of traditional capitalist norms | Adoption of self-indulgent lifestyles and practices like manifestation | Response to deteriorating economic conditions and desire for personal satisfaction |
| Coping mechanism: distraction and radical rest | Resistance to traditional ideals of success | Emphasis on disconnection and self-care through practices like radical rest | Desire to avoid the negative aspects of late-stage capitalism and prioritize personal well-being |