Financial Dreams on Hold? New Insights into Gen Z and Millennials’ Economic Challenges

A new study finds Gen Z and Millennials…

A new study shows that Gen Z and Millennials may not be doing so hot in the financial arena. A Deloitte survey reveals a concerning trend, with over half of individuals from these generations struggling to make ends meet and living paycheck to paycheck. Moreover, as the cost of living continues to weigh heavily on their minds, an increasing number of younger workers are resorting to taking on second jobs. Unfortunately, these financial constraints create a sense of unattainability, making starting a family or owning a home seem like distant aspirations for Gen Z and Millennials.

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Deloitte’s study examined multiple aspects of work for Gen Z and Millennials with a massive response. The survey had over 22,000 respondents across 44 countries. Data was collected from November to December 2022 with additional information gathered in March 2023. Included in the findings, is the following from Business Insider:

Over half of the Gen Zers and millennials surveyed, 51% and 52% respectively, said that they lived paycheck to paycheck. That’s a five percentage point bump from last year, and it comes as prices remain persistently high, likely due in part to companies realizing that they can still squeeze record profits out of consumers. Indeed, cost of living remains the biggest concern for Gen Z and millennials, with over a third of Gen Z ranking it as a top concern, and 42% of millennials staying the same.

Half of Gen Z and 47% of millennials said that they expect starting a family “to become harder or impossible.” They’re even more pessimistic about home ownership, with 61% of Gen Z and 62% of millennials also saying that they expect that financial goal to become more difficult or impossible.

The impact of the pandemic is poised to become the defining event for Gen Z and Millennials. While previous generations have experienced their own defining moments, the magnitude of the pandemic’s repercussions on these cohorts is unprecedented. As the pandemic unfolded, they faced a convergence of challenges including widespread layoffs, a volatile market, and the current surge in inflation, all during a pivotal period of their lives. This confluence of events is expected to leave a lasting imprint on the lives of many Gen Zers and Millennials, significantly shaping their experiences and prospects for the future.