Generation Z—born between 1997 and 2012—isn’t just following social media trends; they’re also changing how people think about money. By early 2025, many of them are in their teens to late twenties and facing an economy very different from what their Gen X parents or Millennial siblings experienced. They are dealing with the effects of the COVID-19 pandemic, new types of work driven by artificial intelligence, and a housing market where the average home price is around $410,000, according to the St. Louis Federal Reserve. They’ve watched previous generations struggle with financial problems like the Great Recession and heavy student debt. Now, they’re working hard to avoid those issues by using technology, learning from the past, and taking a practical approach to money. Whether it’s cryptocurrency or investments based on personal values, Gen Z is finding new ways to manage their money—and there’s a lot others can learn from them.
Learning from the Past, Preparing for the Present
Gen Z didn’t just grow up with the internet—they also learned some hard financial lessons early. Their Gen X parents saw secure jobs disappear and retirement savings shrink during the 2008 financial crisis. Millennials, on the other hand, took on a total of $1.7 trillion in student loans by 2024, with the average graduate owing around $38,000. Many of them worked multiple jobs while adjusting to fast-changing technology. Gen Z paid attention. Only 21% of them are interested in taking student loans (according to Bank of America, 2023), and 35% are already trying to start their own businesses, whether through online shops, video game streaming, or creating apps. Take Sarah, for example—a 23-year-old from Austin who skipped college, learned coding on YouTube, and now makes about $3,000 a month freelancing. Gen Z has made flexibility a strength, both because they want to and because they have to.
Tech-Smart and Eco-Friendly: Gen Z’s Financial Style
By 2025, Gen Z is deeply connected to financial technology. They use apps like Venmo to split rent, Robinhood to buy stocks, and Coinbase to store cryptocurrency—about 17% own some crypto, according to Pew Research (2024). They use budget tools like You Need a Budget (YNAB) to track grocery costs, and they automatically invest with apps like Wealthfront. The reasons are simple: it’s convenient and often cheaper. In fact, 64% of Gen Z members research financial tools online. Safety matters, too—they’re used to things like two-factor authentication. But it goes beyond that: about 40% invest in companies that reflect their values, such as clean energy or plant-based products, according to Morgan Stanley (2024). For instance, Jake, 19, from Seattle, put $1,000 into a clean energy fund last year—and it’s grown by 12%. For Gen Z, doing the right thing and making money often go hand in hand.
How Social Media Shapes Gen Z’s Financial Thinking
For Gen Z, social media plays a big role in how they learn about money—both for better and for worse. Influencers like @GrahamStephan, who has over a million followers, post popular videos with budgeting tips. On TikTok, the hashtag #MoneyTok has over 500,000 posts. About 60% of Gen Z says they learn about investing through short videos. But social media also leads some to spend too much—15% say they buy things like $200 shoes after seeing others post them online (Experian). It’s also easy to compare yourself to others and feel like you’re falling behind, even if you’re doing fine. That said, 25% say they’ve actually become more careful with spending after seeing challenges like “no-spend months” go viral. Some fall for scams—5% a year, according to the FTC—but many are quick to double-check advice on places like Reddit or X. Social media can be helpful, but it also requires careful use.
Learning About Money: A Work in Progress
Gen Z wants to understand money better. A full 84% say they want more financial education (Visa, 2023), but they mostly turn to parents, who may not fully understand today’s financial world. Interest rates are over 11% in some cases, and the value of things like cryptocurrency can change quickly. Gen Z often turns to the internet instead—TikTok, Reddit’s r/personalfinance forum, and YouTube videos are popular resources. They are good at avoiding obvious scams like phishing emails, but some real-world topics are still confusing. For example, only 10% use credit cards regularly, which helps them avoid debt, but it also keeps their credit scores low. One 22-year-old barista who avoids using credit cards now might save $50—but might also miss out on getting a home loan later. Many in this generation still keep most of their money in savings accounts and don’t know much about investing. Only 25% invest in stocks or funds, and only 15% understand things like tax deductions for health savings accounts. They’re learning, but there’s still a long way to go.
Big Dreams, Big Challenges: Gen Z and Homeownership
While many Millennials have continued to rent, Gen Z wants to own homes. A Rocket Homes survey in 2023 found that 86% of people aged 18–24 want to own homes, and 45% hope to buy one by 2028. Take Mia, 24, a software developer in Denver. She’s saved $8,000 and is looking at a $350,000 condo using an FHA loan that requires a $12,250 down payment. The average U.S. home price is around $410,000, which is much more than what Gen Z expects—most guess around $223,000. Still, they’re doing what they can. About 75% are saving money and 10% are working toward a down payment. Some are buying homes with friends or family to split the cost, and others are using strategies like renting out rooms to help cover monthly costs. Some even try newer options like rent-to-own or shared equity. High prices are a problem, but Gen Z is finding creative ways to buy homes.
Taking Money Seriously, One Step at a Time
Many Gen Zers are already taking action. By 2025, about 20% have emergency savings, 14% are saving “just in case,” and 11% are working on paying off debt (Rocket Homes). For example, a 22-year-old barista making $15 an hour might save $100 a month. Compared to Millennials, who reached $1.7 trillion in debt by their 30s, Gen Z currently holds about $200 billion (Federal Reserve, 2024). Leo, 26, a graphic designer, has saved $12,000 since 2022—half for a home, half for emergencies. For Gen Z, it’s not about flashy spending—it’s about stability and peace of mind.
The Roadblocks: Not Enough Cash, Credit Problems, and High Prices
Buying a home is the goal, but getting the money together is tough. Rocket Homes reports that 74% of Gen Z says finances are the biggest issue: 22% don’t have enough saved for a down payment, 18% can’t find homes under $300,000, and 16% worry about their credit scores. Their average credit score is about 680. Student loans are less of an issue—only 7% say it’s holding them back—but home prices have gone up fast. In Boise, for example, a starter home now costs $380,000, up from $300,000 in 2021. Many Gen Zers don’t realize how expensive things really are—81% believe the average home costs around $223,000. FHA loans help, but many don’t know that closing costs add another 2–5%. Education is still a missing piece.
Gen Z’s Strategy: Stay Informed and Keep Moving
They’re proactive. Instead of expensive in-person classes, Gen Z turns to YouTube videos, Reddit forums, and affordable online courses. About 31% earn extra money by freelancing, creating digital art, or selling online content—many earn around $500 a month this way (Federal Reserve, 2024). They also use apps to help them save and invest without much effort. Some round up the cost of coffee to save a few dollars at a time, and others automatically invest small amounts. Emergency funds are important to them, with 20% saving for three to six months of expenses. Some even follow the FIRE movement—short for Financial Independence, Retire Early. These people might save half of a $40,000 salary to reach $1 million by age 40. Take Alex, 21, a retail worker. He has been putting $50 a month into an S&P 500 fund since 2024. It’s grown to $150 already, and he hopes it will reach $1,000 by 2027. Their goals vary—from owning a home to gaining freedom—but they’re thinking ahead.
It’s a Long Journey, Not a Quick Win
Getting rich isn’t something that happens overnight. While Instagram might show someone making a lot of money quickly, Gen Z knows that slow and steady wins the race. About 75% of them would move to another state for a better job (Bank of America). It’s easy to feel behind when others show off wealth online, but saving $5,000 at age 24 is better than saving nothing until 30. That $5,000 could grow to $8,100 in five years and $13,000 in ten if it earns 5% interest. Lily, 23, works as a nurse’s aide. She ignored her cousin’s flashy lifestyle and instead focused on saving money. Since 2023, she has saved $7,000 and has no debt. Gen Z understands that building wealth takes time—and they’re willing to put in the work.
Common Questions About Gen Z and Money
How does Gen Z use financial technology?
They use it often—17% own cryptocurrency, and 64% use apps to manage their money (Pew Research, Bank of America 2024). It’s easy, fast, and part of their everyday life.
Why does Gen Z care so much about sustainability?
More than 40% choose investments based on values, like solar energy or ethical companies, instead of oil or gas (Morgan Stanley 2024). For them, making money and doing good go together.
Is Gen Z against taking on debt?
Yes, mostly. Only 21% want student loans, and just 10% carry credit card debt (Bank of America, Experian). They’ve seen how debt hurt the generation before them.
Can Gen Z buy homes by 2028?
Many plan to—45% say they want to buy a home by then, and 75% are saving money. FHA loans, which need just 3.5% down, will be very helpful (Rocket Homes).
What’s the biggest money challenge for Gen Z?
Money itself. About 22% don’t have enough saved for a down payment, and 18% can’t find homes in their price range (Rocket Homes). Learning more about costs and options will help them move forward.
