Where does Gen Z go for financial advice?
Parents and family members are Gen Z's No. 1 source for financial advice, even topping social media influencers. Sign up for market insights, wealth management practice essentials and industry updates. Sometimes parents really do know best.
Though they grew up with digital payments, Gen Z is embracing cash. A 2023 Harris poll found that 69% of Gen Zers in the US and UK said they used cash more than they did the year before, and in two early 2024 studies, 23% and 37% said they use cash for most of their purchases.
Most Gen Z respondents shared that they feel equipped to handle financial basics, such as managing their day-to-day expenses (70%), sticking to a budget (70%) and building/managing credit (66%). The vast majority (82%) of Gen Z have financial goals, and over half (51%) are prioritizing them.
Gen Z is reshaping the financial services industry with their unique preferences and expectations. They are digital natives who prioritize mobile-first experiences, transparency, and socially responsible investing.
Key Statistics
Gen Z spend most of their money on household bills and expenses, with 52.3% saying they spent the most money on these costs. 17.2% of Gen Z don't think they'll ever have enough money to buy their own home.
- 52% – Household bills and expenses.
- 44% – Clothes and accessories.
- 39% – Travel.
- 37% – Going out/entertainment.
- 37% – Food delivery/eating out.
Real estate (31%) Crypto/digital assets (28%) Private equity (26%) Personal company/brand (24%)
The low proficiency in financial literacy among Gen Z, as evidenced by only 24% of respondents being able to answer basic financial questions correctly in the FINRA survey, points to an urgent need for comprehensive financial education efforts aimed at young people.
46% of Gen Z spent more on fashion than anything else in 2022 (5WPR) Gen Z was the only generation to have clothing and fashion as their top spending category. 30% of Gen Z spent more on beauty and personal care than anything else, far more than any other generation.
Gen Z's standout priorities for 2024 are centered around self-enrichment: things like starting new jobs, learning new skills, reading more, or finding love.
Who does Gen Z trust the most?
TikTok is followed on the list of Gen Z's most trusted brand's relative to all U.S. adults by Snapchat, Spotify, Twitch, Discord, and Instagram.
Gen Zers are having a harder time making ends meet, let alone building wealth. Roughly 38% of Generation Z adults and millennials believe they face more difficulty feeling financially secure than their parents did at the same age, largely due to the economy, according to a recent Bankrate report.
What are the emerging trends in Gen Z banking? Some of the Gen Z emerging trends are: 1. A data-enriched digital service: Gen Z prioritises banks that have a efficient digital system that allows them to manage their expenses well, and that displays their payment data in a clear and transparent way.
Millennials were somewhat better off than Gen X—those born between 1965 and 1980—when they were the same age. Zoomers, however, are much better off than millennials were at the same age. The typical 25-year-old Gen Z-er has an annual household income of over $40,000, more than 50% above baby-boomers at the same age.
What are Gen Z's values? Gen Zers generally have strong values related to racial justice and sustainability. Mobilizations like the Global Climate March, led by Gen Z activist Greta Thunberg, thrive on the activism of young people. Climate change is one of the issues Gen Zers care about most.
Average for Millennials/Gen Z
According to the Fed's data, Millennials and Gen Z's keep somewhere between $5,400 and $7,500 in their transaction accounts.
Despite spending more on technology and experiences, Gen-Z is generally more frugal than previous generations. They tend to be more aware of their finances and are more likely to look for deals, with 43% of Gen-Z citing coupons and discounts as important factors whilst making a purchase.
Gen Z consumers are adept at conducting online research, reading reviews, and comparing products and prices before making purchasing decisions. They value convenience, speed, and customization in their digital interactions.
“Because housing costs have soared so much, many young adults with family money get help from Mom and Dad even when they have jobs and earn a perfectly respectable income,” Redfin's chief economist Daryl Fairweather once said. So, yes, Gen Z is relatively rich compared to their parents and grandparents.
Gen Z spending habits show they care the most about fashion, makeup and beauty products, technology, and their pets. This is perhaps due to their young age and few major bills.
What generation is considered the smartest?
As societal trends continue to evolve, the narrative surrounding generational intelligence unfolds with fresh perspectives. A growing discourse suggests that Generation Z (Gen Z) is endowed with higher cognitive abilities compared to their predecessors, the Millennials.
A new report released last week by the Bank of America's Better Money Habits financial education team found that 46% of Gen Zers between the ages of 18 and 27 rely on financial assistance from their parents and family.
Interpersonal communication skills
Gen Z is the first to admit it. Many acknowledge their lack of interpersonal communication skills needed in the workplace.
Compared with millennials at the same age, Gen Z has more debt of all kinds — including credit cards, car loans and mortgages — after adjusting for inflation, according to TransUnion's internal records.
By most measurements, Gen X is deeper in debt than other generations. Members of Gen X — born roughly from 1965 to 1980 — have the highest average debt stemming from student loans, credit cards and more.
