Gen Z is feeling the pinch as they navigate the challenges of early adulthood. Many young people are struggling with the rising cost of living and feeling like they are hitting a “quarter-life crisis.”
A recent survey found that a significant number of Gen Z adults feel they are being judged by society for how they spend their money. They argue that schools failed to teach them essential budgeting and financial management skills, leaving them ill-prepared for the real world.
Orianna Rosa Royle, an editor, says there is a growing sentiment among Gen Z that the education system did not adequately prepare them for financial responsibilities. If they had been better educated about budgeting and financial planning, they might make different spending choices. The phenomenon has been dubbed “money dysmorphia,” reflecting a financial mismatch where young adults feel financially unstable despite having relatively higher wealth compared to previous generations at their age.
This discord could be fueled by various factors, including social media influences, rising costs of living, and the economic climate. Experts say that while economic data might suggest Gen Z is better off than previous generations, their feelings of financial insecurity highlight a complex interplay between perception and reality.
Gen Z faces financial challenges
The debate continues as both older and younger generations grapple with differing views on financial responsibility and the role of education in preparing individuals for financial independence. As members of Gen Z divert significant portions of their income to entertainment, such as Taylor Swift concert tickets, they report feeling judged for their spending choices. Many young adults feel that if they had been better educated about budgeting and financial planning, they might make different decisions.
The rising cost of living is also a major factor contributing to the financial struggles of Gen Z. With expenses like housing, healthcare, and education increasing at a rapid pace, many young people are finding it difficult to make ends meet. Despite these challenges, experts say there are steps Gen Z can take to improve their financial situation.
They recommend creating a budget, saving for emergencies, and investing for the future. They also suggest seeking out financial education resources and talking to trusted advisors for guidance.