Gen Z and Millennials are deeply concerned about their financial future. According to a recent survey from Deloitte, cost-of-living is a top concern among younger generations, followed by unemployment and climate change.
Roughly half of respondents said they live paycheck to paycheck, and many have even taken on side jobs. Both Gen Z and Millennials said they have also adopted new spending habits such as buying second-hand clothing or not driving a vehicle.
Major life decisions have also taken a back seat, including purchasing a home or starting a family. Instead, a shift of priorities has occurred. Financial management has been key for these two generations caught up in the struggle to find better paying jobs, negotiating a salary, and other economic challenges. It is no wonder that they are prioritizing careful budgeting and steering clear of credit cards, opting for debit cards or paying with cash.
Social Media and Financial Struggles for Gen Z and Millennials
Heavy social media use has been linked to low-self-esteem, depression, anxiety, poor sleep, and low-self-esteem. Roughly 46% of Gen Z respondents said that social media makes them feel both inadequate and lonely. This was the case for 40% of Millennials.
This directly ties into how these groups currently use social media. Although some use it to earn an income, 51% of Gen Zers and 43% of Millennials said that social media creates a desire to purchase things that are out of their financial reach.
“That could stem from regularly seeing posts from friends or influencers flaunting fancy clothes and vacations, as well as targeted ads. In those ways, social media can generate the desire to have more things and spend more money,” Michele Parmelee, Deloitte’s Global People and Purpose Leader told Forbes.
