Gen Z and millennials often find themselves pitted against each other like characters in The Hunger Games but with less archery and more budgeting apps. While millennials were busy approaching their financial coming-of-age with avocado toast, Gen Z has stepped into the scene with a new set of priorities, armed with TikTok stock tips and a healthy skepticism of traditional financial advice. So, what happens when you compare these two generations’ financial habits, salaries, and savings? Here are the details.
Millennials and Gen Z Break the Taboo
Unlike older generations, millennials and Gen Z are more open to discussing money with friends, family, and colleagues. Whether comparing salaries, sharing investment tips, or debating the latest budgeting app, these generations are breaking down the taboo surrounding money conversations. For them, it’s all about transparency and learning from each other’s experiences.
Talking About Money—Family Finance Conversations
Both generations are more likely to have grown up in households where finances were openly discussed. According to Forbes Advisor, 73% of millennials and 55% of Gen Zers reported growing up in families discussing money, making them more financially literate from an early age. Parents passed down money wisdom and life lessons to these generations so that they could confidently navigate their financial futures.
Gen Z’s Credit Debt: Lighter Load, Smarter Choices?
With less credit card debt hanging over their heads, Gen Z shows a knack for avoiding the financial pitfalls that can come with easy access to credit cards. Perhaps it’s the lessons learned from watching their millennial siblings struggle with debt or a heightened awareness of financial responsibility. Whatever the reason, Gen Z seems to be mastering the art of living within their means.
The Rise of Credit Cards Among Gen Z
Despite being more cautious with credit, Gen Z is more likely to have a general-purpose credit card than millennials of the same age. In the fourth quarter of 2023, 84% of 22-24-year-olds had at least one credit card, compared to just 61% of their millennial counterparts a decade earlier, as per a Quartz report. This shift suggests that while Gen Z might be wary of debt, they also recognize the importance of building credit.
Millennials Weathering the Storms
Millennials, often dubbed the “unluckiest generation,” have faced some of the toughest economic odds in modern history. The 2008 Great Recession hit just as many millennials entered the workforce, leading to a slow start in their careers and long-lasting effects on their earning potential. Just as they were finding their footing, the COVID-19 pandemic struck, bringing about another economic downturn and further disrupting their financial stability.
The Price of Feeling Financially Healthy
The average salary in the U.S. is $65,470, but it’s interesting to see how much each generation thinks they need to feel financially secure. Gen Z believes people need a whopping $177,633 to feel financially healthy. On the other hand, according to Sequoia One, millennials are more modest in their aspirations, pegging the magic number at $133,758.
Quitting in Pursuit of the Big Bucks
When it comes to job loyalty, Gen Z is more likely to swap a stable gig for a higher paycheck, with the confidence of someone who knows the power of a well-timed LinkedIn update. Millennials often value job stability and growth within a company and might stick around a bit longer, but Gen Z is fearless in jumping ship if it means a better salary.
The Curious Career Choices of Gen Z
Despite the allure of high-paying careers in law, financial services, or web development, Skynova states that 88% of Gen Z prefer professions like nursing, teaching, retail management, customer services, and even vehicle driving. This big difference between the actual career paths and salary expectations leaves many frustrated, looking for other ways to supplement their income by working different jobs.
Saving Smarts
Gen Z is making millennials look like they’ve missed the memo regarding saving money. According to a Yahoo! Finance piece, Gen Z saves an impressive average of $857 monthly, while millennials manage to set aside just $294. It may be because Gen Z grew up with financial advice memes on Instagram and YouTube; they’re more cautious with their cash, or a mix of both.
Splurge or Save? The Customer Experience Showdown
Millennials are willing to fork over extra cash for a top-notch customer experience, while Gen Z is likelier to choose a lower-priced alternative. They believe in treating yourself to the best because you deserve it. Gen Z, however, is more practical and would rather save the difference and put it towards something more meaningful.
Tech, Travel, and Everything In Between
Gen Z’s spending habits are all about the here and now, with a heavy focus on electronics, technology, health, and wellness. They want the latest iPhone, the best workout gear, and a well-stocked smoothie supply. Millennials prioritize spending on travel and experiences—a weekend getaway or a gourmet dining experience. They want to collect memories over material goods.
The Secondhand Revolution
Gen Z is leading the secondhand shopping revolution driven by sustainability and budgeting. They’re more likely to shop secondhand and resell items, making it cool to be thrifty. Millennials might enjoy a good vintage find now and then, but Gen Z has turned it into an art form, flipping clothes, gadgets, and more for profit.
Millennials and Salary Secrets
While millennials are open to discussing money, they’re also more likely to fudge the numbers regarding their salaries. Some inflate their income to impress others, and others downplay their earnings to avoid awkward conversations. Millennials have a knack for stretching the truth about their paychecks. For Gen Z, however, honesty is the best policy regarding salary discussions.
Gen Z’s Earnings Are Falling Short of Millennial Milestones
Gen Z might be tech-savvy and resourceful, but they’re facing a tough financial reality—they’re making less than their millennial counterparts did a decade ago. With salaries not keeping pace with inflation and the rising cost of living, Gen Z is finding it harder to achieve the same financial milestones as their older peers, often leaving them frustrated and disappointed.
Gen Z’s Financial Hurdles
Gen Z isn’t just making less money—they’re also facing higher costs than millennials at the same age. From skyrocketing rent prices to the increasing cost of education and healthcare, Gen Z is dealing with financial pressures that make it harder to save, invest, or even just get by. real. Despite these challenges, Gen Z is finding creative ways to make ends meet.
