The Surprising Salary That Makes Gen Z Happy in 2024
Written by
Laura Beck
Edited by
Levi Leidy
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Gen Z adults are currently in college or recently out of it. And despite what this generation’s reputation may be, they seem to have realistic — or even low — expectations for their ideal salary.
GOBankingRates asked adults ages 18 to 24 what minimum salary they would need to make to be happy. Here’s what they said.
1 in 5 Gen Z Adults Would Be Happy Making $50K or Less
According to the GOBankingRates survey, 20% of Gen Zers said they would be happy making $50,000 or less, 28% said they would be happy making $50,001-$65,000 and 13% would be happy making $65,001-$80,000.
“It is surprising that so many Gen Zers said they would be happy making $50,000 a year or less,” said Melanie Musson, an economy expert with Clearsurance. “Gen Z likes to travel. They like to go out with friends. They value self-care. These things cost money. In order to afford a home base and the extras they’re used to, Gen Z actually needs a salary of around $75,000. Where they live and the cost of living will make a big difference in what salary is comfortable.”
When factoring in student loans, rent and other expenses, such a low salary may not cut it, especially in high cost of living areas. While Gen Z’s expectations for pay may be lower than past generations, they likely underestimate how far that money will actually go towards their ideal quality of life.
But Ron Stefanski, CEO and founder of Business Guru, was less surprised by the results of the survey.
“My work helping young startups has shown me that for many, factors beyond salary are priorities in their early careers,” he said. “For example, finding work they’re passionate about, learning new skills or having flexibility may matter more than a high starting wage.”
Despite the majority saying they would be content making up to $80,000, there are still a good amount of Gen Zers — 19% — who said they would need to make between $80,001 and $110,000 to be happy.
“As someone who has seen salary data across many industries, I find this expectation is reasonable and aligned with common starting wages in fields like tech, healthcare and business,” said Stefanski. “Where I do think some [of] Gen Z may be unrealistic is expecting doubling or more of the actual entry-level average wage. Through advising many new ventures, I’ve learned that experience, niche skills and industry heavily impact compensation. Unrealistic expectations of six-figure entry wages could lead to disappointment.”
What Salary Does Gen Z Actually Need To Be Happy?
Are Gen Z’s expectations realistic? Or are they too low or too high?
“Gen Z’s expectations are not realistic,” said Musson. “If they make less than $50,000, they will have a hard time affording a home, insurance, utility bills and taxes. Any spending beyond those basics will be hard to afford. Generally, Gen Z’s idea of how much they need to be comfortable is too low. They haven’t experienced enough life to realize how much life costs.”
The spending power of $50,000-$60,000 diminishes quickly when accounting for essentials like housing, healthcare, transportation, food and taxes. Young people may find that their discretionary spending is limited, making it harder for them to save for retirement or emergency funds.
“Overall, while some Gen Z salary hopes may prove low or high, many simply want fulfilling work and opportunity to learn,” said Stefanski. He pointed out that after many years of evolution in workplace ethics and economic imbalances, “prioritizing life over a fixed number in their paychecks is the best we’ve gotten in the path to having functional, working adults in the market. They’re just a new, passion-driven and change-demanding generation!”
Gabrielle Olya contributed to the reporting for this article.
Methodology: GOBankingRates surveyed 1,005 Americans aged 18 and older from across the country between Jan. 23 and Jan. 26, 2024, asking six different questions: (1) What is more important to you in a job/career?; (2) What is the minimum annual salary that would make you feel happy?; (3) How much do you believe you will need in savings in order to retire comfortably?; (4) How much do you currently have saved for retirement?; (5) Do you think you will be able and prepared to retire at 65?; and (6) What percentage of your salary do you put towards a retirement plan, such as a 401(k)?. GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
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