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.
For those beacons of anti-capitalism and pivotal figures in the Great Resignation, financial success in the age of “late-stage capitalism” looks very different from how other generations may have defined it.
Gen Z’s economic outlook is bleak
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 “don’t see a point in saving until things return to normal.” In that same age group, 55% said they put retirement planning on hold during the pandemic.
The future doesn’t 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.
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’re young, and such financial goals seem too far away to properly comprehend—but 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 “American dream” ever less achievable for young people.
Financial wellness is about more than just money
When it comes to financial wellness, Gen Zers place less emphasis on the financial than on the wellness. Unlike previous generations, they’re unwilling to stick it out at a toxic job or forgo travel and experiences in favor of padding their savings.
The traditional markers of financial success—from owning a home to snagging that corner office at work—are becoming not only less attainable but also less valuable for Gen Zers.
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.
Gen Zers are increasingly looking for ways to prioritize quality of life over financial achievement at all costs. The TikTok trend of “soft life”—and its financial counterpart “soft saving”—is a stark departure from their millennial predecessors’ financial habits, which were rooted in toxic hustle culture and the “Girlboss” era.
Cashing in—and checking out
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.
New and often controversial lifestyles are proliferating on platforms like TikTok, such as “bimbo culture” and “stay-at-home girlfriends.” The hashtag “#Bimbofication” has garnered over 275 million views on TikTok. Meanwhile “sugar daddy dating” reportedly spiked 74% on the platform SeekingArrangement during the pandemic.
Increasingly popular with Gen Z audiences, manifestation content has also spread rapidly on platforms like TikTok and Instagram—the latest iteration of the “law of attraction” that promotes the use of “positive frequencies” and “delusional thinking” to attract wealth and prosperity into one’s 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.
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.
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—or “lying flat.” Examples of this “radical” 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.
The new attitudes among this cohort will have a lasting impact on every industry. It’s too soon to tell what the effects of reshaping financial goalposts will be—but not too soon to start preparing.
Molly Barth is a senior cultural strategist at Omnicom’s cultural consultancy sparks & honey.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
It's not surprising Generation Z (those born in the late 90s/early 2000s) are so radically different in their outlook. All they've known is decreasing living standards, as the cost of health, education & housing balloons.
It's interesting to wonder how this will shape how society deals with robots & AI capable of doing most work becoming more and more a reality from the end of this decade onwards. It makes we wonder if they will be quicker to embrace new ideas on how to run countries and economics and dismiss ideas Boomers think are inviolate.
