5 Millennial Money Habits That Gen Z Resists
Written by
Terence Loose
Edited by
Ashley Barnett
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It can be argued that each generation’s financial habits and outlook is a direct result of the times in which they come of age. Career prospects, the cost of debt, housing prices, and the state of the world when a person reaches adulthood matters a lot. So it’s no surprise that Gen Z (ages 12 to 27), many of whom graduated high school or college during times of pandemic, skyrocketing housing prices and inflation, and economic uncertainty, sees many of the money habits of millennials (ages 28 to 43) as irresponsible, outdated or practically impossible to obtain.
Consider that, according to a Cash App survey recently reported in Newsweek, 55% of Gen Z respondents said it “amazed them how much millennials waste, that millennials spend too much, or they are easily pressured into overspending by friends.” Just to be clear, that’s the younger generation throwing shade on an older generation for bad money management.
With that in mind, here are five millennial money habits Gen Z are just not okay with.
Banking and Investment Advice
Millennials: This generation is much more inclined to use traditional banking products and services, such as checking and savings accounts. Sure, they’ll use digital bill pay, but often from online or mobile banking apps. When it comes to investing advice, they often turn to human financial advisors.
Gen Z: As the first generation to grow up fully in the online age, Gen Z, or zoomers, are more comfortable and more inclined to use fintech solutions such as digital banking platforms, peer-to-peer payment platforms, and other modern banking and investment services. They are also more likely to use robo-advisors.
Homeownership
Millennials: This generation, like their parents and grandparents, sees homeownership as core to the American Dream and success. They are often dedicated to saving for a down payment and prioritize buying a home.
Gen Z: Due to the explosion of home prices and increased economic uncertainty in recent times, zoomers don’t put the same importance on homeownership. Whether it’s because they see homeownership as unattainable or not, Gen Z is more comfortable with renting and seeking other forms of investment.
Impulse Spending
Millennials: Perhaps it’s because millennials are more established in their careers and have more disposable income, but according to branding company Attentive, this group is inclined to impulse buy. In Attentive’s study, 74% of millennials said “they make frequent or occasional impulse purchases.”
Gen Z: With Gen Z, that impulse buy number ticked down to 63%, of zoomers saying they make an impulse buy frequently or on occasion. Further, Gen Z — the younger generation — are more inclined to do research into a product before buying. In the survey, 47% of zoomers said they prefer to wait at least a few days before buying a product, compared to 41% of millennials.
More Frugal and Cautious
Millennials: Again, likely because they are more established and better able to navigate recent inflation and housing costs, Attentive’s survey found that millennials were “most comfortable” spending between $50 and $100 online.
Gen Z: Again, surprisingly, the younger generation is a bit more cautious about spending online. Attentive’s survey found that zoomers were most comfortable spending only $20 to $50 online.
Spending on Experiences
Millennials: The focus on homeownership notwithstanding, millennials often prioritize spending their money on experiences, such as travel, entertainment, and dining, over material possessions. They see these, more than possessions, as investments in lifestyle.
Gen Z: Zoomers, again perhaps because of the more economically uncertain times during which they came of age, are more cautious when spending on such things as travel, entertainment and dining. They balance their indulgences with savings and investment, likely due to their more skeptical economic outlook.
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