Introduction:
Gen Z, the first true digital-native generation, is challenging the norms of personal finance. With access to unprecedented technology, tools, and platforms, they’re rewriting the rules on how to earn, save, invest, and spend. Their financial behaviour is shaped by economic uncertainty, climate consciousness, and a desire for independence—and it’s turning heads in the financial world.
1. Digital-First Investing:
Gen Z prefers platforms that are mobile-first, visually intuitive, and low-barrier.
-
Micro-investing apps like Acorns, Stash, and Robinhood make investing accessible with just a few pounds or dollars.
-
Cryptocurrency & NFTs: Many Gen Zers see Bitcoin, Ethereum, and NFTs not as speculation, but as part of a decentralised financial future.
-
Social investing: Platforms like Public.com let users follow other investors, learn from trends, and discuss strategies—bringing a community aspect to finance.
Stat: Nearly 50% of Gen Z investors hold cryptocurrency, compared to only 14% of Baby Boomers. (Source: Pew Research, 2024)
2. Redefining the Side Hustle:
Gen Z isn’t waiting for a dream job—they’re building income streams now.
-
TikTok/YouTube Content Creation: Monetising personal brands through views, sponsorships, affiliate links, and merch.
-
Freelancing: Platforms like Upwork, Fiverr, and Contra allow Gen Z to sell skills like graphic design, writing, and coding globally.
-
Dropshipping/E-commerce: Shopify and Etsy have seen a surge in Gen Z sellers building brands without large inventories.
-
Gig economy: From Uber Eats to virtual assisting, flexible income opportunities are a core part of their financial strategy.
3. Smart Saving and Budgeting:
Forget traditional banks—Gen Z prefers digital tools with features that help automate, visualise, and gamify savings.
-
Fintech apps like Monzo, Revolut, and YNAB (You Need a Budget) are popular for setting goals, rounding up transactions, and tracking spending in real-time.
-
Savings challenges: Many participate in viral trends like “100 Envelope Saving Challenge” or “No-Spend Months” through social media communities.
4. Values-Based Spending and Investing:
Gen Z is intentional with their money. They prioritise ethical companies, sustainability, and social impact.
-
ESG investing: Environmental, social, and governance factors play a major role in Gen Z’s investment choices.
-
Support for small businesses: They’re more likely to shop from independent creators and minority-owned brands than big-box retailers.
5. Low Trust in Traditional Finance:
Unlike older generations, Gen Z came of age during economic crises, student debt booms, and growing wealth gaps.
-
Skeptical of big banks: Many opt for neobanks or DeFi (decentralised finance) alternatives.
-
Self-educated: TikTok, Reddit (especially r/personalfinance and r/wallstreetbets), and YouTube finance creators have replaced bank advisors for many young people.
Conclusion:
Gen Z isn’t just saving spare change—they’re creating financial systems that work for them. With an emphasis on technology, autonomy, and purpose, their money moves offer a glimpse into a more flexible, decentralised, and socially aware financial future.