Gen Z says they have it harder than their parents did — and the economy is to blame (2024)

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Gen Z says they have it harder than their parents did — and the economy is to blame? ›

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.

Gen Z is in the financial trenches. A new study from credit reporting agency TransUnion found those in their early 20s are earning less, have more debt and see higher delinquency rates than Millennials did at their age. The findings outline the credit usage of 22 to 24 year old Gen Zers.

She says Gen Z faces more challenges in some ways than previous generations. “There's a growth in inequality in the transition to adulthood. There's a lot of changes in culture and norms, insecurity more generally, in terms of climate change and the war and school shootings and rapid inflation.

Though the challenges facing Gen Z are unique, issues with their parents often boil down to age-old “difficulties in communication, boundary setting and honesty, often rooted in fear, whether it be fear of judgment, fear of failure, fear of harm or even fear of change,” Efron said.

Gen Z is richer than just a few years ago—and much richer than their parents at the same age—but everything costs more and they have more debt, Pew study reveals. Gen Z is making more money than their parents at their age, but they still have to deal with higher costs of buying a home and college.

Gen-Z feels substantial anxiety and stress about jobs, long-term financial stability and major life steps, such as buying a home and starting a family.

Young members of Gen Z are struggling more financially today than Millennials did at their age 10 years ago, according to a new study published last week by the credit reporting agency TransUnion.

Additionally, lifestyle factors such as vaping, mental health conditions, and social isolation may also contribute to premature aging. However, experts emphasize the importance of maintaining a healthy lifestyle through balanced nutrition, regular exercise, and social engagement.

The members of Generation Z, the oldest of which are now in their 20s, on average are expected to live to 100 and beyond. Health technology may or may not eventually lift Gen Zers well past that. They could be the generation that collectively hits the biological ceiling.

From issues like discrimination and human rights to personal safety and violence, it's all stressful to younger Americans. But, like their older counterparts, health- and finance-related concerns topped the list of stressors.

What is Gen Z weakness? ›

Gen Z is known for four major weaknesses, including reduced attention span and impulsivity. Every generation has its weaknesses, which are often the result of the shared culture and systems they grew up in.

The word is used in drag culture as a way of referring to individuals who mentor young people, figures worthy of imitation and admiration. More recently, it's been tapped to signal the presence of an empowered feminine figure.

Gen Z Mental Health Statistics

According to ​​research conducted by the Walton Family Foundation 42% of Gen Z battles with depression and feelings of hopelessness, which is almost twice as high as Americans who are over 25 (23%).

American Gen Zers, the oldest now entering their late 20s, have already accumulated substantial wealth through inheritance, investments, and entrepreneurship. Cerulli Associates estimates a seismic USD 84 trillion will transfer from baby boomer wealth in the USA to heirs, with Gen Z front and center.

All this can make it hard to feel optimistic about Gen Z. But when you look around the world, and at a wider set of measures, the Zoomers are far from doomed. In many respects, they are doing rather well.

Gen Z says they have it harder than their parents did — and the economy is to blame. Most Gen Zers blame the economy for making it harder to get by, according to a recent report. Those just starting out are more likely to need a side hustle to help cover their monthly expenses.

Many Gen Zers are focused on staying afloat, making traditional financial milestones feel irrelevant. Over half (56%) of Gen Zers said they don't have enough savings to cover three months of expenses, per an August 2023 Bank of America survey.

Millennials, born roughly between 1981 and 1996, are characterized by higher levels of income compared to Gen Z, born between 1997 and 2012, due to more years in the workforce. They are more focused on growing their money to secure their future.

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.

Wealthiest Generation: Baby Boomers

According to the Federal Reserve data, baby boomers – people born between the 1946 and 1964– win the top spot for the wealthiest generation in the U.S. In aggregate, their total net worth is $78.55 trillion.