A cost of living crisis, stagnant wages, and shrinking economies are leaving young people worst off, according to a new study. Many Gen Zers are unable to save or invest for the future.
This may not come as much of a surprise, but it turns out Gen Z may be financially struggling more than any other generation.
New survey data from financial services company DailyPay found that only 28% of Gen Zers can pay all their bills on time. Rising prices of goods, rent, energy, and everything in between means that nearly three quarters of young people can’t cover their basic needs.
300 young adults between the ages of 18 and 25 were surveyed. More than half (54%) said they’d chosen to live with parents to evade the harshest effects of economic downturn.
Fast Company notes that the Bank of America published data in September stating 73% of Generation Z are unable to save money. Rent payments are now 16% more expensive year-over-year for Gen Z compared to only 3% for boomers.
All these stats are particularly damning for young people, as they’ve not had adequate time to find their professional footing or build up a savings account. This means that any change in living costs will be felt acutely compared to much older peers with nest eggs and a safety net.
Millennials have had a rough time over the years too, with most saying their financial situation was ‘dire’ earlier this year. They added that life aspirations were virtually impossible to reach as a result. Generation Z are in much the same boat – just far younger with nothing to fall back on.
It makes those tired arguments about ‘Netflix and takeaways’ all the more frustrating. Just this past summer, nearly half of the UK believed that Gen Z spent too much cash on streaming, fast food, and coffee, and sourced it as a primary factor in their inability to buy a house.
The reality is far more complicated. Put simply, money does not go anywhere near as far as it used to, with wages stagnant and costs of goods rising exponentially. Young people are finding it hard to simply move out altogether, let alone begin to build an independent life.
With war, climate change, and constant political uncertainty here to stay for the long-term, it’s unlikely we’ll see a change in fortune any time soon. The reality for Gen Z will likely be stricter spending habits, less luxuries, and avoiding renting properties for as long as possible.
It’s no wonder Gen Z are so adamant on side hustles and independent employment. Having multiple income streams isn’t so much a novelty, rather a growing necessity.
I’m Charlie (He/Him), a Senior Remote Writer at Thred. I was previously the Editor at Thred before moving to Bristol in 2024. As a music and gaming enthusiast, I’m a nerd for pop culture. You can find me curating playlists, designing article headline images, and sipping cider on a Thursday. Follow me on Twitter, LinkedIn and drop me some ideas/feedback via email.
The unlikely gastronomic trends of today’s youth are transforming the food industry – one briney, garlicky, pantry item at a time.
If each decade was defined by a food item, the past few years would follow a chronology something like this: avocado on toast in the early 2000s, kale chips and acai bowls in the 2010s, and now an unlikely contender – tinned fish.
Yes, those humble cans of sardines, mackerel and tuna,...
Young people are experiencing high levels of stress more often than previous generations. What does this tell us about modern attitudes to work and wellness?
Reports of high stress levels among young professionals have become so frequent they hardly register as newsworthy. 98% of Gen Z workers report experiencing symptoms of burnout, with frontline workers facing some of the worst conditions. So what’s going wrong? And why does a...
How Can Gen Z Discuss Their Use of AI Tools with Managers to Ensure Transparency and Trust at Work?
I love the intention behind this question: recognizing that using AI could be a concern and that the best way to address it is through open discussion.
First, don’t assume your manager is against AI. Many leaders I talk to are open to exploring how it can be used as a tool...
New studies show that those under the age of 28 are almost twice as charitable as Gen X and Baby Boomers, despite having significantly less disposable income. With traditional outlets like Comic Relief seeing a nosedive in viewership, Gen Z are seemingly transforming the way they give back. Plus, radio surges in popularity and tea could be falling out of favour with UK teens.
What do most of us...
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok
0 comments
