Adulthood for millennials wasn’t just a challenge–it was a financial disaster. Millennials entered their twenties burdened by student debt and soaring living costs, making financial stability feel unattainable. In fact, many graduated into the horrors of the 2008 recession, where jobs were scarce, wages were stagnant, and rising rent costs. These factors forced young adults to slow down on buying homes, starting families, and even saving for retirement. It seemed like the traditional formula of success–college, career, and wealth–was failing them. Now, Gen Z is entering a similar environment. This time, instead of succumbing to the economy, they are planning to get ahead of the game by taking a different path. Using better financial knowledge, new ways to make money, and a willingness to adapt, Gen Z is handling the state of the economy more effectively than their millennial predecessors.

Gen Z is growing up in a world where financial education is more accessible than ever. Unlike millennials, who predominantly relied on traditional schooling and personal experience to learn about handling money, Gen Z is lucky enough to find instant advice through the internet. Digital media like Instagram, YouTube, and online courses work as easy-to-access platforms. Not only this, but it also makes it easier to understand and apply to one’s own life. As a result, they are learning how to save, build credit, and avoid debt much earlier than millennials ever did. Many Gen Zers are already familiar with financial concepts before graduating high school. This early exposure to personal finance gives them a strong advantage in making informed financial decisions as they enter adulthood.

Gen Z is not waiting until their twenties or thirties to invest. Unlike millennials, who started their adult lives during an economic downturn and were hesitant to take financial risks, Gen Z is jumping into the market at a much younger age. Many Gen Z young adults are learning about topics like compound interest, long-term and short-term investments, banking concepts, and portfolio management, all in their teenage years. This gives them an early advantage to build wealth as soon as possible rather than waiting later in life. By prioritizing investing early, Gen Z is setting themselves up for long-term financial success, which millennials have always struggled to achieve. 

One of the biggest mistakes that Millennials have made is relying solely on traditional nine-to-five jobs. The newer generation embraces multiple sources of income with open arms. The new digital era and modern advances have introduced side hustles, freelancing, and content creation as other ways to make money instead of just relying on jobs gotten straight out of college. This provides them with greater financial flexibility that previous generations did not have. Social media platforms like TikTok and Instagram have turned influencers into entrepreneurs, while freelancing websites allow young people to monetize their skills anywhere. This approach not only increases their income but also gives them more financial security in a rapidly changing job market. By diversifying their income, Gen Z redefines financial success through multiple sources of income. 

Despite their financial awareness, Gen Z also faces economic challenges that could make financial stability just as difficult, if not harder, than it was for millennials. According to the Forbes article “Gen-Z Faces Financial Challenges, Stress, Anxiety And An Uncertain Future”, a report states that “over 50% of Gen-Zers said they are “extremely worried about not having enough money’’, where the recent recession has made living “a top priority for these young adults”.   Inflation has driven up the cost of living, making necessities like housing, food, and transportation more expensive. While millennials struggled with living standards after the 2008 financial crisis, Gen Z is dealing with an unstable post-pandemic economy. This means the newer generation of young adults is facing rising interest rates and college tuition as well as a competitive job market. Even with better financial education, the reality of high costs and economic instability remains unfixed. Despite these challenges, Gen Z is still more adaptable than millennials were at their age. For example, a report from “Talk Researcher” states that “ 21% of Generation Z sets aside between 1% and 10% of their income each month, while 25% save between 11% and 20%”, exceeding the amount of money that other generations typically save at their age. Instead of relying on traditional jobs to make ends meet, they are considering multiple sources of income, remote work, and learning entrepreneurship to stay financially afloat. Instead of waiting for adulthood, they are taking advantage of early investment opportunities. Moreover, Gen Z begins adulthood with a more cautious and strategic approach to money, having learned from the experiences of millennials. Hence, with these factors kept in mind, there is no doubt that Gen Z has prepared themselves better for long-term financial stability in a way millennials simply could not.