5 Genius Things Gen Z Does With Their Paychecks
Written by
Cindy Lamothe
Edited by
Jenna Klaverweiden
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Gen Zers are proving they are more financially savvy than other generations give them credit for. According to the World Economic Forum, the way they view finances is “sometimes aligned with and sometimes starkly different from those of older generations.”
They’re not afraid to think outside the box — whether that means diving into crypto, leveraging side hustles or using cutting-edge tech to stay on top of their finances.
“Gen Z has revolutionized managing money, blending tech with practicality in ways older generations seldom imagine,” said Ali Zane, credit repair expert and CEO of Imax Credit.
This generation is proving that being smart with money doesn’t have to be complicated. Here are five things this generation is doing with their paychecks and their money.
Budgeting and Tracking Expenses
One of the key habits that Gen Z has developed, according to Patrick McDermott, executive vice president of Max Cash, is budgeting and tracking their expenses.
They understand the importance of knowing where their paychecks are going and how much they have left to save or spend. He said this helps them make better financial decisions and avoid overspending.
In fact, as reported by Fast Company, Gen Z is most likely to create a budget among all generations.
They’re all about tracking expenses and staying on top of their budgets, thanks to the many budgeting apps available today. Apps like Mint, You Need a Budget (YNAB) and PocketGuard allow them to categorize spending, set up savings goals and even get alerts when they’re about to overspend.
Investing In Cryptocurrencies
Unlike older generations who may be more skeptical about investing in cryptocurrencies, Gen Z is diving into this new form of digital currency, according to McDermott. “They see the potential for growth and are willing to take risks with their money in order to potentially reap high returns,” he said.
According to a 2025 YouGov study, 42% of Gen Zers own crypto. While some might call crypto risky, Gen Z sees it as a way to diversify their investments and get in on a growing market.
Working Side Hustles
“Gen Z understands the value of having multiple streams of income and are not afraid to work hard for it,” McDermott said. Many of them have a side hustle or freelance gig in addition to their main job, which can significantly boost their income and help them achieve financial stability.
You can likely find them flipping items on eBay, becoming freelance graphic designers, managing social media accounts for small businesses, or launching their own online stores on Etsy or Shopify.
The point is that Gen Zers are hustling hard to increase their income streams.
Prioritizing Saving for the Future
If you think young people today are more focused on instant gratification than planning for the long haul, you’d be wrong. Gen Z is actually saving for the future — big-time.
While many older generations may prioritize spending money on material possessions, McDermott said Gen Z is more focused on saving for their future. “They understand the importance of building a nest egg and investing in their retirement early on, which can have significant long-term benefits,” he said.
In fact, according to Newsweek, Gen Z is saving more of their money than any other generation — and some even save their entire monthly salary.
All to say, Gen Z is determined to secure a financially stable future for themselves, even if it means making sacrifices today. They’re setting themselves up for success by thinking about tomorrow.
Using Technology for Financial Management
“Gen Z is known as the tech-savvy generation, and they are utilizing this skill when it comes to managing their finances,” McDermott said.
From budgeting apps to investment platforms, they are using technology to their advantage and making smart financial decisions. They’ve basically got every corner of their finances covered with just a few taps on their smartphones. Gen Z knows that technology is the key to not only tracking money but also making smarter financial decisions.
Whether it’s setting up alerts for due bills, sending money via Venmo or CashApp, or using Robinhood to trade stocks, this generation is fully embracing a digital-first approach to money management.
More From GOBankingRates
