How do generations differ in how they think about success? Does financial prosperity mean the same thing to Gen Z as it does to Millennials?
The way Gen Z views life differs significantly from Millennials, Gen X, and Boomers. While some parents are holding their heads in worry that their kids are eschewing tradition, a closer look at Gen Z’s objectives and motives reveals that they really make a lot of sense.
Keep reading to learn more about how Gen Z is reframing the wealth and success conversation, including lessons that any generation can apply.
How Gen Z Reframes the Financial Conversation
Gen Z is readjusting its trajectory to a lifestyle and future that offers more holistic wellness. They’re doing this in response to a society fraught with economic slumps, environmental instability, and widening chasms of dystopia.
The way that young people see money and make plans for their futures has altered because of inflation, shaky economic conditions, and growing personal debt. Generation Z has seen how their parents and grandparents built their lives on beliefs that may not be viable today. And how, by emulating these beliefs, they’ll end up with student loan debt, credit card debt, and other financial issues. Not to mention a great amount of stress and all the negative health effects it brings.
If Gen Z has demonstrated anything, it’s that they take lessons from prior difficulties. Members of this generation are adapting their financial methods and lives for the times we live in. They’re focusing on simplicity and frugality, and are determined not to become another cautionary tale.
A Different Attitude To Debt
Gen Z debates debt far more before taking it on. They don’t simply accept that debt is part of life, no matter what the long-term financial implications. Additionally, they tend to select job paths that offer more opportunities for financial security and upward advancement.
Gen Z is giving saving, budgeting, and closely watching credit ratings top priority to avoid falling into the same debt trap as older generations. This demographic is entering a new phase of affluence because of habits that include careful budgeting, thrifty spending, side hustles, and avoiding debt at all costs.
Eschewing Status Chasing
Many of today’s young find little attraction in status symbols and luxurious lifestyles. They understand what happens when they spend more than they can afford. With the middle class dwindling and the environmental calamity, the foolishness of outdated spending practices is becoming clear. The opinions of those aged 18 to 25 reflect a change in priorities.
Gen Z’s entrepreneurial spirit creates new routes to financial freedom and is motivated by a yearning for autonomy from failed systems. Gen Z doesn’t think working a 9 to 5 desk job for two weeks of vacation or starting a new business from scratch is a good strategy.
Focusing On Minimalism
Most people associate minimalism with a fierce aversion to excess and commercialization. Growth, affluence, and independence are important to Gen Z. To them, minimalism simply refers to getting rid of things we don’t need and contentment with the essentials. Finding satisfaction in experiences and connections rather than material stuff is essential to this strategy.
Gen Z still appreciates fine cuisine. But instead of waiting in line outside of hip restaurants, they buy and cook fresh ingredients from small, local vendors. Although they still have a comfortable home, they’re content with the space they have for living and working rather than aspiring to a palatial lifestyle. They still like the finer things in life, but they now express their appreciation with thoughtful rather than expensive gestures.
Simply put, Gen Z is removing the excess of arbitrary value definitions and determining for themselves what a decent life entails. These young people are better off for not having their objectives influenced by the demands of a status-obsessed culture.
Older generations have come under fire for purchasing large homes just as storage facilities for their useless possessions. Gen Z is all about the minimalism trend, which provides an alternative to this manner of living. They cherish things that have both sentimental meaning and usefulness, yet they abhor any kind of clutter. When anything breaks, they either fix it themselves or give it to a friend who can use it and fix it. They will immediately sell anything that’s gathering dust and still has value, and they’re not afraid to cancel services that don’t serve them.
Many members of the Gen Z generation find the clutter in their parents’ houses a sore point and bemoan the accumulation of damaged and useless items that are seldom used. Gen Z has seen the environmental damage that this thoughtless consumption pattern has caused. And, as the most environmentally conscious generation alive, they’re choosing to move away from the maximalism of conspicuous consumption.
Work-Life Balance Is Worth More Than Money
Perhaps even more significant is a generational shift in approaches to balancing life and work. Phenomena like ‘act your wage’ and ‘quiet quitting’ have rapidly gained popularity, attesting to the prevailing mindset in the generation.
For those not in the know, ‘act your wage’ refers to a philosophy of limiting your engagement with your job and the time and energy you put into it to match the amount you’re paid. Working unpaid overtime and taking on responsibilities outside your job description get a hard left swipe from these young people. ‘Quiet quitting’ means doing the bare minimum amount of work required to keep your job and absolutely nothing more.
All of this speaks to a generational shift in attitude that places a higher premium on personal pursuits than people in older generations. Many Boomers, in particular, glorify the culture of overworking and career success. This generation will proudly brag about how many hours of (free) labor their employers have extracted from them, under the impression that this will improve their lot in the corporate hierarchy, which is indifferent. Gen Z knows this, having seen it happen to their parent’s generation.
Instead of being defined by their job, which this generation sees as simply the way you exchange your living hours to survive under capitalism, Gen Z is searching for a more holistic balance. This is a generation that celebrates creative hobbies for their own intrinsic value, which many people have taken to displaying on TikTok to amuse and educate their peers around the world.
Gen Z thinks of education differently, too. Having seen millennials accumulate crippling student debt only to face poor job prospects during a recession, this generation is turning instead to the collective knowledge of the internet to educate themselves and gain accreditation in their chosen fields. Although this may simply result from changing technologies.
The Bottom Line
Financial prosperity looks different for every generation. Gen Z is reframing it now, and there’s no doubt that when it’s Generation Alpha’s turn, they’ll do the same.
With over 15+ years of experience, Matthias Emmert is a seasoned entrepreneur with a focus on online marketing, entertainment, and gaming. He has written for various online publications covering topics around business, finance, and budgeting.
