Gen Z is the media darling of this moment, taking the crown away from the millennials.
This year's 24-year-old generation is the most prominent in the spotlight because they have begun to exert influence over work, lifestyle and consumer trends. You don't need to look far for headlines promising Gen Z how-to market beauty brands or meet workforce demands.
Gen Z is a story of coming-of age, and it's changing the landscape as they enter adulthood. They are the first generation to be digitally native and can be reached online where they often launch new trends. They are social entrepreneurs and innovators who want to shape the world.
The pandemic struck them during their formative years. This could have a significant impact on their long-term future. The risk of millennials repeating their economic woes is high for the oldest members of the "TikTok" generation, who were caught in a recession after they graduated, but they are already showing signs that will define them for years. They're trying to save early and invest wisely, and embracing a thrift lifestyle.
They are large and have a lot of spending power and could take over the economy within ten years. But their spending restrictions and distrust about markets could mean that they will be very different.
It's difficult to capture a whole generation while some members are still teens or others are adults. Because of demographic differences, data can be complicated. Here's how Gen Zer's life in 2021.
Gen Z was the new "it" generation that emerged from the pandemic.
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Gen Z is the largest generation with a wide range of ethnicities and will soon surpass millennials in terms of education. Jason Dorsey of the research firm Center for Generational Kinetics, however, says that they are not millennials 2.0.
He said that they are a distinct generation, with different parents and different perspectives. The oldest members are now entering the stage of life in which they are able to exert enough influence to be considered the "it" generation.
He explained that society feels it now understands millennials and is shifting its focus to the next generation. This remains a mystery. He predicted that Gen Z would continue to shift and drive much of the conversation for the next 15-years.
They are the first generation to be raised in a digital age, and they are tech-savvy and mobile-first.
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Gen Z was born in a world dominated by technology, the internet and social media. The average Gen Zer bought their first smartphone shortly before their 12th birthday. Gen Zers communicate mostly through text messages and spend just as much time on smartphones as older generations watching TV.
Their digital behavior was heightened by the pandemic. They were able to spend a lot of time scrolling on their phones and digitally connected with each other as many returned home during the pandemic at similar life stages, Dorsey stated.
This enabled TikTok to become the favored platform of Gen Z during the pandemic. The social media app had expanded to intergenerational use and had grown 75% by September 2020. It demonstrates the increasing influence of Gen Z in driving consumer behavior, just like how millennials used Instagram.
The typical Gen Zer, like millennials before him, has experienced -- and will continue to experience -- economic difficulties.
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Gen Z is on the verge of repeating the money problems experienced by millennials thanks to the pandemic. The recessions are often worst for the youngest workers. According to the World Bank, Covid lockdowns could cause Gen Z students to lose $10 trillion in their lifecycle earnings.
The Bank of America Research report "OK Zoomer" concluded that the pandemic would have a similar impact on Gen Z's professional and financial futures to the Great Recession had for millennials.
Covid, "Like the 2008-2009 financial crisis for millennials," Covid will hinder Gen Z's career opportunities and earning potential, the report states. It also notes that Gen Z entered adulthood during a recession just like a large cohort of millennials.
"I'm worried about becoming like the people who graduated in 2008," Maya Tribitt from the University of Southern California told Insider. "A lot the anxiety people my age have about finding jobs straight out of college has been fueled by the horror stories of people 10 to 10 years older than we. It is scary to imagine that this might be our reality.
The typical Gen Zer is working to create wealth and avoid the millennials' track record of being left behind, but they are not yet able to do so.
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According to a CGK survey, 70% of Gen Zers had their own money by 2017. This is the same as Gen Zers, who average 10 years more.
In 2020, a CGK follow-up survey found that Gen Z has learned how to save money. Dorsey stated that Gen Z has started saving money and investing sooner than the previous generations and is looking for good job benefits.
According to the State of Gen Z report, 54 percent of Gen Zers have saved more since the pandemic started than before it. Three-quarters of Gen Zers have opened an internet investment account. 39% have opened a bank account online.
Gen Z will have to work harder, despite having invested earlier. According to Credit Suisse's global investor returns yearbook, Gen Z can expect an average annual real return of 2% on their portfolios. This is a third lower than the 5% plus real returns that millennials, Gen X and baby boomers saw.
Their average credit card debt is $1,963, which is lower than any generation before them.
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According to Experian Consumer Debt Study, Gen X has the highest amount of debt since they are in their prime spending years. Boomers follow them.
It's logical. Gen Z is still in their teen years and has the oldest generation members in their 20s. Many of the oldest people are still struggling to get their feet on the ground at work, and many don't have the same assets as the older generations.
Gen Z is not debt-free. They have an average loan debt of $15.574.
Their student-loan debt is lower than the average for other generations, at $17,338. However, this will likely increase as they enter college.
Gen Z has a smaller student-debt burden than other generations.Pat Greenhouse/The Boston Globe/Getty Images
Experian also agrees.
This was once seen as a problem for millennials but is now a problem for Gen Z. This generation is responsible for 7.37% of the $1.57 trillion national student loan debt. But college is getting more expensive. As more Gen Zers go to college, this share will likely increase.
As President Joe Biden campaigned for student debt cancellation, he has been reluctant to do so since his election. The Democratic Party is at war with Biden over his authority to unilaterally cancel debt, resulting in borrowers stuck.
The typical Gen Zer contributed to the rise in debt despite their financial health. On average, they owe $16,043
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Experian reported that Gen Z experienced the greatest debt growth between 2019 and 2020. The average balance increased by 67.2% to $9,593, with the Experian report confirming this. However, this is still less debt than any other generation. Experian reported that the average balance increased by 67.2% from $9,593, but the highest growth was seen among the youngest consumers.
This growth was mostly in mortgage and personal loans debt. Gen Z owes $169,470 and $6,000.04 respectively. The rise in debt is evidently being led by Gen Zers who are home-buying.
The typical Gen Zer will still be able to take over the economy within a decade.
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Bank of America Research's OK Zoomer report concluded that Gen Z would fare well over the long-term. According to it, the current generation earns $7 trillion in total across its 2.5 billion-member cohort. It stated that by 2025, this income will rise to $17 trillion and reach $33 trillion by 2030. This represents 27% of the global income and will surpass that of millennials in the next year.
Gen Z Planet, a research and advisory firm, recently discovered that the generation is now saving more and investing more than they are spending. They have $360 billion of disposable income.
They are already having an impact on consumer behavior. Gen Zers rebel against everything 2010s while trying to revive the trends of the first millennium.
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Research shows that people feel more nostalgic during times of economic distress. Gen Z's idea of a nostalgic escape is to relive the fashions from before social media.
They're bringing back the Y2K trends, from wired headphones to claw clips, and baggy jeans. This is what Sara Fischer of Axios calls a "throwback economics." For example, Gen Z can make an "antifinance bro" statement by using corded headphones in place of AirPods.
They also lust after an "old money", aesthetic that includes Oxford shirts and tennis skirts as well as tweed jackets. This is a stark contrast to the "California Rich" look of Kardashians and casual outfits of the new millennial millionaire class of 2010.
The VSCO girl was a viral sensation before the pandemic. Her natural appearance was a cross between '90s fashion, and a surfer lifestyle. She was an interesting contrast to the contoured faces of Instagram influencers and their lip fillers. Gen Z's continuing embrace of nostalgia is a sign that she is not a fluke but the harbinger for a new (older) look.
Gen Zers love nostalgia, which explains why they shop at thrift shops.
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Gen Zers are the ones who are looking for sustainable and fashionable clothes. Thrifting is flourishing.
Gen Zer Grace Snelling stated that she has "almost stopped buying clothes from traditional shops." People almost respect you when you wear thrifted clothes. It looks great because it's stylish and sustainable.
The digitally-native generation can recycle and resell clothes to get new outfits. They don't have to post their budgets on social media, so they avoid repeating themselves. You can also use it to create a side hustle that makes you a lot of money, such as Poshmark and Depop, which allow you to make as much as $300,000.
This trend extends beyond clothing. Insider's Avery Hartmans reported that Gen Z and millennials are increasingly switching to vintage furniture over mass-market decor.
This isn't just about fashion. Gen Zers are bringing their contrarian views to work.
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Gen Z is challenging the norms of the workplace and rejecting the ones established by millennials. Emma Goldberg, a New York Times reporter, wrote that Gen Z, a group of young twenty-somethings, is challenging traditional ways of working. She suggested that they delegate work to their bosses, ask for mental health days, work less after they have completed their tasks, and set their own hours.
Erika Rodriguez recently called it a "slow up" in an opinion piece for Guardian. This refers to a permanent shift that slows down productivity in order to have more separation from work.
Some Gen Zers have quit their jobs in a "Great Reshuffle" that LinkedIn CEO Ryan Roslansky described as a "Great Shift." His team monitored the percentage of LinkedIn users who changed their jobs and discovered that Gen Z's job changes have increased by 80% in that time period.
Personal Capital and The Harris Poll conducted a survey in August that found that 91% of Gen Zers wanted to change jobs. This is more than any other generation. Some are looking for better opportunities in different jobs while others are choosing to quit working, which is bolstering the anti-work movement.
Although Gen Zers are still young, many of them have already entered the workforce. However, it is clear that they will be just as or more progressive than their elder peers.
They are also innovative, creative, entrepreneurial and innovative, both at work and in their personal lives.
Part of the Students for Hospitals team.Jalen Xing
Emma Havighorst, 2020 graduate, said last year that "Gen Z" is ingenious and powerful. "The way we view the world is very different than previous generations."
Havighorst hosted "Generation Slay" for three years. The podcast profiles Gen Z entrepreneurs and creators like Gabby Frost, a mental-health advocate, and Ziad Ahmed, a nonprofit founder. She believes that the pandemic will bring more innovation.
She said, "Necessity breeds ingenuity." "We'll be looking for solutions to problems that have plagued previous generations."
Jalen and Daniel Lan, high school students, created face shields for hospitals during pandemic. They started the Students for Hospitals initiative.
A DoSomething Strategic survey revealed that more than half of Gen Z respondents (58%) said they have taken up new activities or are doing more of what they enjoy since the pandemic.
Perhaps most importantly, Gen Zers are ready for change and will do whatever it takes to make it happen.
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Gen Z is a generation whose childhood was shaped by international protest movements such as Occupy Wall Street, the Arab Spring and the March for Our Lives antigun protest. It has also been at the forefront activism, including the March for Our Lives antigun protest and the climate movement. Greta Thunberg, a climate-crisis activist, is perhaps its most well-known member.
2020 also put the generation front and center in the anti-police-brutality demonstrations sparked by the killing of George Floyd, a Black man who was murdered by a white police officer in Minneapolis. Yubo and Insider surveyed 38,919 US-based Gen Zers and found that 77% had participated in a demonstration to support equality for Black Americans.
Insider's Juliana Kaplan reported that the generation played a crucial role in the 2020 election. This may have finally captured the youth turnout. The Center for Information and Research on Civic Learning & Engagement at Tufts University (CIRCLE), revealed that youth voter turnout for 2020 increased by at least 5% over 2016, and possibly as high as 9%.
The possibility exists that Gen Z could be the catalyst for change.
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