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Bankrate explores Gen Z’s distinct money mentality and approach to achieving financial well-being

Gen Z’s Unique Money Mindset And Approach To Financial Wellness


Navigating the world of personal finance is a daunting task for anyone, but it is a particularly pressing concern for Generation Z as they begin their careers and become financially independent. Aged between 18 and 26, Gen Z is grappling with new financial challenges at a time of high inflation, expensive college costs and a competitive job market.


Gen Z, unlike previous generations, has shown a distinct approach to money and financial wellness. One of the biggest financial concerns for Gen Z is their lack of emergency savings. The ability to save has been greatly impacted by the high cost of living and going to college, paired with the fact many Gen Zers are working at entry-level jobs. This has created a sense of economic insecurity and emotional distress, as financial stress negatively impacts their mental health.

Gen Z’s unique money mindset is also reflected in their investment preferences. They are the most likely to prefer less volatile investments, with many choosing savings accounts, money market funds, CDs, or government bonds over stock-related investments. This cautious approach can be attributed to their desire for stability in an uncertain economy.

Reasoning and Logic:

The economic environment plays a significant role in shaping Gen Z’s financial mindset. They enter adulthood burdened by high prices, rising inflation, and the increasing cost of higher education. Student loan debt is a common reality for many Gen Zers, adding to their financial stress. The lack of affordable housing and the pressure to pay for everyday expenses further contribute to their financial strain.

Gen Z’s unique money mindset can also be attributed to their desire for financial independence. Compared to older generations, they believe in shouldering financial responsibilities at a younger age. This desire for independence drives them to establish a budget from scratch, start an emergency fund, and seek career opportunities that offer stability and growth.

Related Facts:

  • 53 percent of Gen Zers plan to invest more in an investment/retirement account considering the state of the economy, including higher interest rates and elevated inflation.
  • 52 percent of Gen Zers cite inflation and rising prices as the biggest money concern negatively impacting their mental health.
  • 27 percent of Gen Zers are currently unemployed and looking for a new job.

Key Takeaway:

Gen Z faces unique financial challenges and approaches money differently. Their cautious investment preferences, focus on financial independence, and concerns about inflation and rising prices highlight their need for stability and security. Building emergency savings, pursuing higher education strategically, and seeking stable job opportunities are key pillars of Gen Z’s financial wellness.


As Generation Z steps into adulthood and takes control of their finances, it is crucial for them to navigate the financial landscape with an informed and strategic approach. Their unique money mindset, influenced by economic factors, calls for a focus on stability, independence, and smart financial decisions. By understanding their challenges and embracing the resources available, Gen Z can build a solid foundation for their financial future.

Denk Liu
Denk Liu
Denk Liu is an honest person who always tells it like it is. He's also very objective, seeing the situation for what it is and not getting wrapped up in emotion. He's a regular guy - witty and smart but not pretentious. He loves playing video games and watching action movies in his free time.

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