How Gen Zers Are Preparing for a Recession: Will It Work?
Written by
Jamela Adam
Edited by
Amen Oyiboke
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Growing up during the aftermath of the 2008 financial crisis, only to graduate into a pandemic and now face inflation and housing instability, Gen Z is hyper-aware that a recession could be around the corner.
Though most Gen Zers are still relatively early in their careers or just starting to figure out adulthood, they’re already thinking about how to protect themselves financially.
Here’s how Gen Z is preparing for a recession, and whether it’d be enough to weather the storm.
Budgeting and No-Buy Lists
The no-buy challenge is trending on social media, and it’s exactly what it sounds like: a list of things you can’t spend money on for some time. It can be things like skincare products, daily coffees from Starbucks, or Netflix subscriptions.
The fact that no-buy lists are trending is a sign that Gen Zers are actually getting serious about tracking expenses to prepare for a recession. Many #FinTok influencers are also teaching their followers to use budgeting apps like YNAB or spreadsheets to keep themselves accountable.
This is a pretty noticeable shift, especially compared to the “YOLO” mindset that many Gen Zers were following a few years ago.
Side Hustles and Skill Stacking
Apart from spending, another big part of Gen Z’s recession prep is learning how to earn more money.
Search “how to make money” on TikTok or Instagram, and you’ll fall into a rabbit hole of Gen Zers breaking down their side hustles. Some are using AI to monetize their YouTube channels, and others are making money off of Amazon affiliates and TikTok shops.
Many aren’t stopping at just one stream of income either. They’re building multiple, so if one slows down, another can pick up the slack.
In other words, Gen Zers are learning skills that will serve them well no matter what the economy looks like. And instead of relying on a single job or paycheck, they’re building job security by having a side hustle (sometimes multiple).
Moving Back Home To Save Money
Not long ago, living at home in your 20s was something people tried to avoid (or at least avoid talking about). It felt like a sign you hadn’t figured things out yet.
But now, many Gen Zers are openly sharing what it’s like to live at home, showing their routines, how much they’re saving, and why it’s worth it. There’s way less shame around it, most likely because of how ridiculous rent prices are in big cities and how difficult it is to find jobs for some fresh grads.
By staying at home for a bit, that extra money they save can go toward paying off debt or building an emergency fund. And if a recession hits, having lower living expenses can take a ton of pressure off.
Will It Work?
Gen Zers are doing a lot of the right things, like spending mindfully, building high-income skills, and diversifying income. That said, even the best financial habits can’t fully shield anyone from the bigger forces at play.
Rent prices are climbing faster than wages in many cities, and homeownership is still out of reach for most young adults in their 20s and early 30s. On top of all that, student loan payments are back, Trump’s tariffs are causing market turbulence, and inflation is still lingering. So even though Gen Zers are prepared and proactive, many factors outside their control could make it harder for their financial plans to fully pan out.
Having solid money habits is still important, though. It might not guarantee complete financial security. But it does give Gen Zers a stronger foundation and a better shot at weathering whatever storm comes next.
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