Why Gen Z Approaches Money Differently Than Previous Generations

Gen Z finances money sharing

The aftermath of the COVID-19 pandemic has left many people desperate for employment opportunities and wealth. Yet, despite the steady increase of people living in poverty over the past two years, nearly three-quarters of Gen Zers think they’ll be wealthy one day. So what’s their secret? Well, it’s all in how they approach finances, both in terms of investments and earnings.

Gen Z Invests Their Money Differently

One of the biggest differences between Gen Z and previous generations comes into play with how they utilize and store their money. Instead of building a savings account or setting aside money for a retirement nest egg, Gen Zers are focused on investing their money in ways that provide immediate gains.

For example, most Generation Xers and even older Millennials see owning their own home as a way to invest their money. Yet, most Gen Zers are utilizing real estate to build wealth in other ways. This includes investing in rental property as well as newer concepts such as fractional real estate investing and real estate investment trusts, which allow you to invest what you can directly into properties or companies profiting off of the real estate boom.

Furthermore, Gen Z is highly enthusiastic about investing, but for the sake of retirement alone. Instead, over half of all Gen Zers have funds invested in some sort of venture. These investments vary between mutual funds, exchange-traded funds (ETFs), cryptocurrencies, and non-fungible tokens (NFTs). This holds true regardless of income status and gender identity.

It’s likely that these dramatic shifts in investments are at least somewhat contributing to Gen Z’s general outlook on their future wealth. They can see the future return on their current choices in where to place their money.

Gen Z Makes Money Differently, Too

When Baby Boomers entered the workforce, they went in with the mindset of working their way up the career ladder and eventually being rewarded for their loyalty to a single company. However, that mindset almost never works in our modern world. So, Gen Z has recognized this and adapted.

Unlike Millennials, who sought out careers in business and related fields, many Gen Zers aspire to work in fields related to healthcare, education, or the arts. Gen Zers aren’t as scared of things like student loans, which opens the door for opportunities requiring more time in school. This upfront investment will eventually pay off, and that’s what Gen Zers are banking on.

Also, Gen Zers are by far the most active members of the modern gig economy. In fact, most Gen Z individuals who aren’t in college participate in freelance work or take up contract work instead of seeking out full-time, salaried employment options. What’s more, many of them seek out alternate sources of income through social media and other online options.

Gen Z has definitely entered adulthood with a splash… but not in the way most people imply. In many ways, Gen Z is poised to be one of the wealthiest generations to date. So, maybe it’s time we look at what they’re doing to earn and invest their money and take a play from their book for once. Who knows, it just might offer some hefty returns.

Feature Image by Karolina Grabowska via Pexels


  1. You are right, this generation is more free, ready to spend on the opportunities that they see here and now. I have a few friends who are already looking into business loans to start their own business. no fear)

  2. You are right, they have a simpler attitude towards finances and many even try investing. The only bad thing is that they do not study the topic and often just do things that are not thought out, instead of following experienced people and learning the nuances.

  3. Moreover, I believe that nowadays, people are more open about online sources of income, and I think it’s great. Even I decided to get into forex trading and profit online, and it didn’t take me long to start making money that way, so I think it’s better for people to learn more about that.

  4. This is an interesting insight. Now a digital currency has appeared and therefore fiat money is no longer so valued. In addition, people have learned how to make money on the NFT and this is not the most cunning way. If you are currently creating or buying NFTs, you should learn more about the Wakweli protocol. On the site you will find all the useful information and you will be able to think about the importance of certifying your digital assets. Such a certificate will provide you with reliable protection against fraudsters.

  5. Understanding the financial mindset of different generations is intriguing. Gen Z’s unique approach to money stems from their tech-savvy upbringing and diverse experiences. They tend to lean towards digital alternatives like cryptocurrencies. Speaking of which, if you’re curious about the world of cryptocurrencies, platforms like CoinFeeds offer a comprehensive view of the market. Exploring Bitcoin crypto news and insights can help you navigate this evolving landscape. It’s all about staying informed to make informed decisions.


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