Gen Z’s Approach to Wealth and Economics
- Aarav Jhaveri
- Oct 2
- 3 min read
Being born between 1997 to 2012 Gen Z lives in a world of complete uncertainty involving economics. The rapid technological advances and the social changes mark a financially unstable path. Previous generations freely chose financial stability over anything because it ensures a clear path that results in them getting a degree, a house, and a decent job. Gen Z is debating whether or not wealth is truly worth chasing in the long run.
Financial Freedom is Better Than Wealth
For most of Gen Z true wealth isn’t about physical objects or material possessions. Gen Zers will choose job flexibility, ability to travel, or simply not worry about the next bill over a luxury car or buying a large house.
In general Gen Z values experiences over possessions. This is why streaming, side hustles, and starting small businesses are becoming more mainstream everyday. According to Micheal Ward who claims “Generation Z, born between the mid-1990s and early 2010s, is spearheading a significant shift in consumer behavior. This cohort is increasingly prioritizing experiences over material possessions, a trend that reflects their unique values, aspirations, and the cultural landscape they’ve grown up in.” Gen Z uses their financial freedom to buy experiences over material objects. The increasing proof of this backs up Ward’s claim.
Starting Younger Than Ever
Gen Z is starting to invest younger than any generation in the past. According to Daniel Liberto Gen Z started investing at 19 years old, Millennials started at 25, and Gen X started at 32. This significant difference between each generation is a result of the technological advancements our society has made. The internet provides loads of information that continues to grow as time advances.
Lots of Gen Zers are immediately jumping straight into investing in stocks, ETFs, and even crypto. While many critics claim that it is dangerous to follow these trends and it leads to unnecessary risks, it is undeniable that Gen Z has ambition.
Think Before You Buy
Gen Z understands the importance of buying goods. The carefully bought goods align directly with their values. According to Johnny Wood Gen Z is much more likely to buy something environmentally friendly than any other generation. This generation is much more conscious of their economical decisions than any other generation in the past. They aren’t just asking, “how much can I earn?” But also “what impact does my money have?”
Learning Through Social Media
Gen Z is learning about wealth and economics through social media such as Tik Tok, Youtube, and Instagram instead of the old ways such as getting a trusty book from the library. Financial influencers have millions of followers that teach numerous things such as terms like compound interest, credit scores, and more baseline terms. According to Mckinsley & Company, “at least 50% of Gen Zers see news on social media daily.” This staggering number provides evidence into just how much Gen Z relies on social media. Getting daily news through social media has both pros and cons. Although it empowers education, misinformation can spread extremely fast.
Mental Health > Hustle
While the previous generations glorified hustle culture and burnout, Gen Z is pushing back. Gen Z values hustle culture but not at the cost of mental health. Gen Z views financial security as one cog in a gear that allows them to reach a well balanced and purposeful life. According to Adam Hayes, “nearly two-thirds of Gen Zers say they prioritize peace of mind and personal time over accumulating wealth. Gen Z is redefining success as it is no longer defined through wealth and status and defined as creating a life they actually want to live.
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