Datastream

How Gen Z Feels About Its Financial Future

Published

2 years ago

April 21, 2023

Freny Fernandes

Graphics/Design:

Bhabna Banerjee

Gen Z financial future

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The Briefing

4 in 5 Gen Zers believe they will be at least as financially successful as their parents
Gen Zers have a more positive outlook on their financial well-being than their millennial or Gen X peers

How Gen Z Feels About Its Financial Future

From rising costs of living to the effects of the pandemic, Gen Z was hit by multiple crises as soon as they stepped into the workforce.

To start, the rising cost of education and the resultant soaring student debt has many Gen Zers questioning the value of post-secondary education. Meanwhile, the widespread layoffs and economic uncertainty have them worried about stable employment. In addition, anxiety around climate change is a very real factor affecting how younger generations view their future prospects.

A survey conducted by Morning Consult—visualized in the graphic above—found that while the Gen Z is feeling more uncertain about their financial future than ever, most believe that they will be financially better off than their parents, if not the same.

The table below highlights exactly how the Gen Z feels about its financial future.

Gen Z Repondent Categories	Better off than parents	Same as parents	Worse off than parents
Male	39%	43%	18%
Female	36%	44%	20%
White	35%	44%	21%
Hispanic	42%	41%	17%
Black	46%	40%	15%
Other Races	44%	41%	15%
Total	38%	43%	19%

Breaking the Narrative: Gen Z’s Optimism

Gen Z is an optimistic and driven generation. Many young people in this generational cohort are turning to entrepreneurship and side hustles as a way to supplement their income and build a brighter future.

So, when asked how they would fare financially when compared to their parents, it makes sense that 38% of the Gen Z youth surveyed by Morning Consult believed that they would be better off than their parents. 43% believed that their financial situation will remain the same and only 19% felt that they would be worse off.

Irrespective of gender and race, four in five Gen Zers said that they would be better off than their parents, if not the same.

So, while many of the stories we hear about the outlook for Gen Z are negatively framed, this generation is more optimistic and determined than one might expect.

Where does this data come from?

Source: Morning Consult

Data notes: Survey conducted Nov. 2-8, 2022, among a representative sample of 1,000 U.S. respondents between the ages of 13 and 25, with an unweighted margin of error of plus or minus 3 percentage points. Figures may not add up to 100% due to rounding.