Counting Pennies: Gen Z’s Financial Struggle
How did the generation of digital natives become the generation of “broke”?
1. The Rising Tide of Debt
Almost 56 % of Gen Z graduates leave school carrying student loans—
compared to 44 % of Millennials at the same age.
“Student debt felt like a second mortgage before I even got my first job.”
— Recent grad, Class of 2024
2. Skyrocketing Living Costs
- Rent Increases: Average studio rent rose by 12 % year‑over‑year.
- Gig Economy Wages: Contract work yields 30 % less than full‑time roles.
- Everyday Essentials: Groceries and utilities now eat up 40 % of a Gen Z paycheck.
3. Hustle Culture & Side‑Gigs
Many Gen Zers juggle multiple income streams:
| Side‑Gig | Average Monthly Take‑Home |
|---|---|
| Rideshare driving | $400 |
| Freelance design | $650 |
| Content creation | $300 |
Yet juggling gigs comes at the cost of stability—and sleep.
4. Small Wins: Building a Safety Net
- Automate Savings: Start with $10/week → $520/year
- Budget Tools: Apps like PocketGuard and YNAB
- Microsplurge Mindset: Replacing daily $5 lattes with homemade brew
“A dollar saved is a dollar earned—no matter how small.”
— Personal finance blogger
5. Looking Ahead
Gen Z’s financial story is still being written. By combining smarter habits, policy changes, and financial literacy, we can turn the tide—one penny at a time.