Author: Jack Haxton
Gen Z’s Financial Struggles: A Generation Under Pressure
Nearly 70% of Gen Z rate their finances as “fair” or worse, which helps explain why so many young adults have a bleak outlook on their financial future. With economic stress and market conditions constantly shifting, most of this generation feels like they are playing a never-ending game of catch-up. Regularly dealing with job anxiety and rising costs, this generation has a very pessimistic view of their future in this country. However, this built-up frustration is just a temporary phase instead of a permanent reality.
Right now is a very difficult time for people in their 20s, nearly half of Gen Z lives paycheck to paycheck, and most people spend over $ 400$ a month on nonessentials. About half of this generation has no emergency savings, which means when random expenses hit, they are forced to use high-interest credit cards or personal loans. This is not only about money. There is a growing sense of anxiety amongst this generation. More than half of Gen Z report feeling uneasy about their financial future, citing the primary sources as rising costs, job instability, and general uncertainty about what lies ahead. When working hard and feeling like you continue to fall further and further behind, it is easy to slip into a view of pessimism for your future and question if the American dream still exists.
Anxiety Over the American Dream
Despite what this generation may feel, think, or say, the future in America is far from in jeopardy. Actually, the future in America has never looked more promising than its current state. This is because the US remains the world’s largest economy with a $25.5 trillion GDP, which is growing faster than other G7 countries and continues to show a remarkable amount of resilience over the years. The US job market continues to be one of the strongest globally, with over 10 million openings projected, leading in sectors like tech and healthcare. Wages also lead the globe, and real wage growth has outpaced many other developed nations in recent years. So, with that being said, the opportunity is there, and for a generation hungry for purpose and progress, we couldn’t think of a better place to be.
Why the Big Picture Is More Promising Than You Think
The United States leads the world in innovation, from AI to biotech to clean energy. Our financial markets remain the strongest and most accessible globally, and the S&P 500 is up 85% since 2019. Our country ranks first in entrepreneurship, which allows us to consistently attract top capital and talent from around the world. Despite the rising costs of living, we have a greater purchasing power than most developed nations, and long-term forecasts tell us that we will remain the world’s top economy through 2050. So, for the younger generation, this means that the future is very bright, but we must think long term and continue to invest in ourselves.
You Don’t Have to Navigate This Alone
Getting caught in the day-to-day and more micro-level issues is very easy, especially when things feel uncertain. But if we step back, we can see that the bigger picture tells us a different story. Our country still rewards creativity, hard work, and resilience, and Gen Z is one of the most educated, tech-fluent, and value-driven generations we have ever seen. The future of our country might not look exactly like the past, but that doesn’t mean we aren’t on the right track for success. At The Financial Guys, we understand that navigating your 20s and 30s in today’s economy can feel overwhelming, but you don’t have to do it alone. Our team specializes in turning financial uncertainty into opportunity with personalized plans, investment strategies, and real-world advice tailored to your goals. Contact us today.
