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Gen Z’s Financial Goals and Challenges: Navigating a New Era

Gen Z: Achieving Financial Goals Despite Challenges

Generation Z, born between 1997 and 2012, is starting to make their mark on the world. As the youngest generation, Gen Z is known for their technological savviness, social awareness, and pursuit of financial stability.

However, these young adults face several challenges as they try to achieve their financial goals. In this article, we will explore the financial goals of Gen Z and the challenges they face in accomplishing them.

Financial Goals of Gen Z

1. Saving

Saving money is one of the primary financial goals of Gen Z.

With the rising cost of living and the global pandemic affecting economies, it has become increasingly difficult for them to save money. Inflation remains a concern, especially for those who rely on low-wage jobs, as it impacts people differently, depending on their income.

The high costs of basic necessities, such as housing, education, and healthcare, also contribute to the challenge. Moreover, debt stands in the way of saving money for many Gen Zers.

With student loans, credit card debts, and car loans, many of them feel like they are already behind, which makes it harder for them to save money. 2.

Increasing Income

Gen Zers understand that they need to make higher wages to achieve their financial goals. They take advantage of the “hustle culture,” taking on side hustles or starting their own businesses.

But, the challenge is finding those higher-paying jobs that can provide long-term financial stability. The average salary for the entire working population is around $60,000 annually, but Gen Zers are making much less due to their lack of experience.

They need to know which job fields and skills are in-demand to pursue to make the most of their time and effort. 3.

Finding a Job

While not all of Generation Z is out of school yet, finding their first job is a priority for many. They want to understand the top occupations for their skillset and the industries that are growing now and in the future.

Job satisfaction is also an important factor for young people to consider. They want to work for companies that align with their values and have a positive impact on the world.

4. Buying a Car

Owning a car is no longer just a luxury, but a necessity, especially for those who live in areas with inadequate public transportation.

Gen Zers, however, don’t want to settle for just any car. They want to find a car that fits their needs and, at the same time, is affordable, whether that involves a luxury vehicle or a used car.

5. Living Comfortably

Ultimately, Gen Zers want to live a comfortable life, free of financial anxiety.

They want to be able to save and spend money on things that matter to them. They dream of being debt-free and owning a home one day.

Challenges Faced by Gen Z

1. Saving in the Current Economic Climate

Inflation is a concern for everyone, but Gen Zers are particularly vulnerable since they are just starting their careers.

Bank of America reports that around 46% of Gen Zers are worried about their financial future due to the pandemic’s impact on the economy. With the cost of basic necessities rising, it has become even harder to save money.

2. Employment and Income

The COVID-19 pandemic has made it challenging for Gen Zers to find jobs.

Many of them have lost their positions, and job opportunities have become scarce. Even those who have managed to get a job may find it difficult to make ends meet, with many of them earning less than the average salary.

The pandemic has also made job satisfaction an even bigger challenge since some companies were forced to cut benefits or let go of employees.


In conclusion, Gen Zers face several challenges as they try to achieve their financial goals. They struggle to save money, increase their income, and find a job that suits their interests and values.

The pandemic has exacerbated these challenges, and young people need to be even more proactive about their financial futures. It’s crucial that Gen Zers research industries and occupations and educate themselves on personal finance to make informed decisions for their financial well-being.

They can take advantage of financial tools and programs that can assist with saving, investing, and debt repayment. With careful planning and determination, Gen Zers can overcome the challenges that stand between them and their financial goals.

3) Comparison with Millennials

As Gen Zers enter adulthood, comparisons between their financial goals and those of Millennials have become prevalent. Although the two generations are often grouped together as “young adults,” there are fundamental differences between them when it comes to finances.

3.1 Financial Goals

One primary financial goal that both Gen Zers and Millennials share is the creation of an emergency fund. Both generations understand the importance of having money saved for unforeseen circumstances, such as a job loss or a medical emergency.

However, where Gen Zers differ from Millennials is in their approach to credit card debt. Unlike Millennials, who were notoriously known for carrying high amounts of credit card debt, Gen Zers are more cautious when it comes to credit card usage.

They tend to use credit cards as a tool for building credit, rather than as a means of survival. This approach to credit card usage has led to Gen Zers having higher credit scores than Millennials at the same age.

Furthermore, Gen Zers are much more likely to seek financial education to learn how to invest their money wisely than Millennials did when they were younger. 3.2 Priorities

While both generations have similar financial goals, priorities differ slightly for each.

For example, while Millennials prioritize debt-free living, Gen Zers prioritize homeownership and building wealth. Although both generations understand the importance of being debt-free, Gen Zers are willing to take on financial risk to achieve their long-term goals.

They recognize that building wealth requires an investment and view owning property as an opportunity to gain financial freedom. Overall, while both generations have similarities in their financial goals, Gen Zers prioritize building wealth more than Millennials do.

4) Gen Z’s Love for Luxury Cars

For Gen Zers, purchasing your first car is more than just buying a means of transportation. It’s a symbol of independence and status.

And unlike Millennials, who generally preferred practicality over luxury, Gen Zers are drawn to ostentatious cars. 4.1 First Car Purchases

Many Gen Zers aspire to own a BMW or similar luxury car as their first car.

For many, it’s a way to show off their success and achievements. However, owning a luxury car at a young age can come with financial risks, as the cost of maintenance and insurance can add up quickly.

A more practical option for young people is to opt for a used car. Gen Zers are more likely to purchase a used car than a brand new one, recognizing that it’s a more budget-friendly option.

4.2 Popular Car Choices

While luxury cars are a common dream among Gen Zers, Honda Accords and Civics remain the most popular car choices among young adults. These cars are practical and reliable, making them a perfect fit for individuals within this age group.

Furthermore, Hondas are well-priced, making them affordable, even for young adults with limited budgets. This affordability makes them a popular option among Gen Zers who are looking for a reliable car without breaking the bank.


In conclusion, Gen Zers have unique financial goals and interests compared to Millennials. They prioritize homeownership and building wealth and seek financial education to achieve their long-term goals.

Additionally, as a generation focused on status, many aspire to own luxurious cars, such as BMWs, as their first car, even though practicality typically prevails. However, young adults are still drawn to reliable and affordable cars such as Honda Accords and Civics to meet their immediate transportation needs.

In summary, this article explored the financial goals and challenges faced by Generation Z, focusing on saving, increasing income, finding a job, buying a car, and living comfortably. The article also compared Gen Z’s financial goals and priorities with those of Millennials, highlighting the similarities and differences.

Additionally, the article delved into Gen Z’s love for luxury cars, discussing first car purchases and popular car choices. Overall, while Gen Z faces challenges such as inflation, debt, and employment uncertainties, it’s crucial for them to prioritize financial education and planning to achieve long-term goals.

The key takeaway is that Gen Zers have unique financial goals and interests, and they must take proactive steps to overcome challenges and achieve financial stability.

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