Gen Z individuals, currently in their twenties, are navigating a particularly difficult economic landscape marked by high inflation, job losses, and a stagnant housing market. This challenging environment has led many young adults in the UK and elsewhere to question traditional paths to wealth accumulation, such as pursuing a university education, owning property, or securing a stable graduate job. Despite some studies indicating Gen Z earns higher salaries than their parents did at the same age, many experience a significantly lower economic status, evidenced by reduced homeownership rates, stagnant graduate salaries, and substantial student loan debt. University of Nottingham economics professor John Gathergood notes that in real terms, young people are worse off, often finding traditional financial advice, like allocating no more than a third of salary to rent, unfeasible as young renters in England aged 16-24 spend an average of 49.7 percent of their gross salary on housing.
This disillusionment has contributed to what some term "financial nihilism," with young adults reportedly engaging in risky behaviors such as reduced work effort and increased investments in speculative assets like crypto or prediction markets, especially when homeownership seems unattainable. However, not all Gen Z has given up; many are adopting different strategies to build long-term wealth. For instance, the youngest members are reconsidering university due to debt concerns and the diminishing value of a graduate degree, with UK 18-year-old application rates declining since peaking at 42 percent in 2022. The graduate pay premium has nearly halved compared to minimum wage jobs since 2007, and rising student loan interest rates exacerbate post-university debt.
Gen Z is also demonstrating a proactive approach to investing, with an unprecedented number making their first investment at an average age of 20, compared to millennials at 26, Gen X at 28, and baby boomers at 31. A 2025 HSBC study revealed that over 56 percent of British 18 to 34-year-olds are now investing. While a small fraction may follow misguided online advice or invest in high-risk meme stocks, many are building diversified portfolios through self-education. Furthermore, Gen Z is moving away from rigid career ladders, embracing "career minimalism" where they maintain a 9-5 job while developing side projects. This shift reflects a changing financial landscape where even parents, with 85 percent of British parents of Gen Z children worrying about giving bad financial advice, are uncertain about the best guidance for their children.
