Financial Planning for Gen Z: What Makes It Different?

Abstract

Generation Z, comprising individuals born from the late 1990s to the early 2010s, approaches financial planning within a markedly different economic and social environment compared to earlier generations. Rising living costs, income uncertainty, and limited emergency savings significantly constrain their ability to save and invest, even though many recognize the importance of long-term financial security. At the same time, Gen Z’s strong digital fluency reshapes how they interact with money, favoring digital payments and technology-driven financial tools while still seeking human guidance for major financial decisions. Although studies indicate growing awareness and engagement with financial skills among Gen Z, notable gaps persist in basic financial knowledge, such as understanding savings mechanisms and interest earnings. Social influences further shape their behavior, with greater openness in discussing money matters and a cultural shift away from cash toward digital transactions—enhancing convenience and transparency but also increasing the risk of impulsive spending. Together, these factors highlight that financial planning for Gen Z must differ from traditional approaches by being practical, digitally integrated, and education-focused, balancing immediate financial pressures with the need to build long-term discipline, literacy, and sustainable financial habits.