As many Gen Zs reach adult hood, many are having to face the harsh realities of the current economic instability and unfounded inflation. With the housing market being in shambles, many people can no longer afford homes. A report from 2024 suggests that over half of Gen Z’s primary financial concerns is the enormous cost of living. Other essentials have also gone up in price, including groceries and utilities.
Reliance On Family
Although many Gen Zs are now adults, they may have to rely on their families for support more than any other generation before them. Over half of Gen Zs receive financial support from their parents or other family members, with nearly a third of them relying on this support for groceries, rent, and healthcare.
Job Instability
To make financial stability even worse, many Gen Zs are facing job instabiltiy, with many stuck in dead end contract or part-time work that barely covers their essentials. These jobs don’t normally offer healthcare or retirement plans, meaning they lack essential benefits. Many jobs just don’t pay enough anymore or have obscene requirements.
Inflation
Inflation has dramatically increased the prices of many essentials over the last few years. Grocery prices have risen by a quarter in just six years, and rent has increased by nearly a third in just five years. Even if wages are increased to compensate, they can’t compete with inflation, meaning purchasing power is at an all-time low.
Student Debt
To burden worried young adults even more is student loan debt. In 2024, student debt passed 1.5 trillion dollars, and many graduates are wondering what they can even do with their degree when they can’t find work that pays enough. Many feel desperate as their debt looms over their heads.
Societal Pressures
With many young adults clinging to social media, many creators on these platforms showcase their seemingly perfect lives, which only further puts pressure on them to do better when they can’t necessarily. Many creators show off stable lives with their own houses, vehicles, and designer wardrobes, increasing the disparity.
Savings
Savings are hard to make with increasing costs. A study suggested that more than half of Gen Zs have less than $1000 saved up, which means they are exceptionally vulnerable to unexpected costs, especially when many don’t have healthcare.
Mental Health
Financial stress can have a huge impact on mental health, as many young adults worry about how to secure their future and if it is going to pan out. Anxiety and depression can rise as Gen Zs can’t look ahead and have to live month-to-month on a small salary.
Future Outlook
As wages fall behind with every other cost, Gen Zs may not have a great outlook on what the future holds. As many aspire to be homeowners, start families, and have children, these dreams seem unattainable. Gen Zs will find it harder to build lives than the generations before them.
Challenges
All of the harsh realities that Gen Zs face underscore the unique challenges that they and perhaps the next generation may face if nothing changes. Structural changes are needed to solve these problems. Individuals struggling right now need proactive planning and awareness to live the best life possible and set up their future.