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Changing Attitudes Towards Money: Financial Priorities Amongst the Younger Generation

  • Yi Chen
  • Nov 9
  • 4 min read
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While older generations focused on wealth accumulation, the younger generation prioritises financial wellness as part of their broader self-care routines. This shift is driven by growing economic pressures. 76% of young adults identify rising living expenses as inducing their financial anxiety. Also, 48% describe employment insecurity as a long term barrier to their financial independence. Around 60% of Gen Z and Millennials are concerned about their finances. Whereas, 37% of Baby Boomers. While both groups feel they possess a minor stake in the economy, the different scales illustrate the widening generational gap in financial security. Economists have described this phenomenon as part of a ‘lost generation’, navigating not just social media pressures but also the harsh realities of financial insecurity.

Despite these challenges, Gen Z’s approach to money management is characterised by innovation and adaptability. From automated budgeting apps like Monzo and Revolut to high-interest savings accounts and investment platforms. Digital tools offer young people a sense of control and transparency over their spending. This engagement with digital banking reflects the innovative approach that younger generations are undertaking. Moreover, Around 92% of Gen Z and 67% of Millennials are willing to work multiple jobs or side hustles to achieve their financial goals. These rates of young people actively seeking multiple income streams illustrate their adaptability.

Younger generations’ hustle-culture is more than just ambition. It provides wellbeing benefits. 41% of young adults attribute their improved financial well-being to possessing additional income streams. Also, 31% list growing their side hustle as a top financial priority. The range of income streams harnessed by young people defies the turbulent economy and its job market. Young adults today are attuned to economic resilience.

However, young adults are still vulnerable against aggressive capitalism. It is more difficult to be financially literate in a market oriented around consumerism. During lapses of fiscal responsibility, short-term thinking appears harmless. But, young adults acting on ‘present bias’ (the tendency to prioritise immediate rewards over long term goals) is harmful. Yet, ‘present bias’ is reinforced by the digital economy. With the rise of one-click purchases; targeted ads and ‘buy now, pay later’ schemes - such as Klarna and Clearpay - the market exploits cognitive biases to encourage consumption.

Over 64% of 18-25 year-olds have used a ‘buy now, pay later’ service in the past year, and one in five admitted they later regretted their purchase. Meanwhile, 38% of 18-29 year-olds report difficulty saving regularly. They often cite “unexpected small expenses’’ as a reason for depleting their savings. This is amplified by social media, which fuels spending and comparison culture. 54% of 11-17 year-olds report that online content makes them feel pressured to buy unnecessary items. 48% of Gen Z admitted to making purchases to keep up with trends, highlighting the influence of digital culture on spending behaviour. For example, platforms, like TikTok and Instagram, blur the line between lifestyle and marketing. They harm financial decisions through constant exposure to influencer content, which leads social media users to spend money unnecessarily.

Yet, young adults’ investment priorities are transforming global finance. Around 99% of Gen Z and 97% of Millennials are interested in sustainable investing (with around 70% of both groups expressing that they are “very interested”). Around 68% of Gen Z and 65% of Millennials possess more than 20% of their portfolios in institituitons with positive environmental or social impact. In comparison, only 37% of Gen X and 22% of Baby Boomers possess substantial stakes in ethical institutions.

Young people, as well as caring about ethical institutions, are conscious about the financial services they engage with. 96% of Gen Z and 92% of Millennials express that they choose financial services based on their sustainable investing options. Many young investors now demand that companies uphold environmental and social standards. This conscious consumerism extends to spending habits too.

Campaigns linked to anti-fast fashion initiatives and environmental advocacy groups such as ‘Fridays for Future’ have gained traction largely through digital platforms. Around 73% of Gen Z consumers are willing to pay more for sustainable products, and 41% say they have reduced spending on fast fashion brands like Shein in response to environmental concerns.

Overall, as young people confront austere economic conditions they are adapting to the world, whilst influencing the market. Comparatively younger generations are proving more resilient than older generations. Whereas older generations accessed employment with relative ease, expressing less concern about finances than younger generations. Yet, whilst young people aspire for financial independence they are developing a stake in the economy in multiple capacities. Now, younger generations are poised to engage in finance, a world that does not accommodate them.

References

  1. Intuit survey (2025), Beyond the Budget: How Younger Generations Are Easing Stress with Financial Wellness Habits

  1. Brigham, T. (2025, February 18). The New Money Mindset: Gen Z is treating Finances like Self-Care

  1. Morgan Stanley (2025). Sustainable Signals: Individual Investors (Press Release)

  1. Speaker Agency (2025, April 28). Understanding the Financial Habits of the Gen Z

  1. Strat7 (2025 March 5). Millennials and Zoomers: Understanding the Financial Mindsets of younger generations

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