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Being young in today’s economy isn’t the breeze it once was. Ask the parents of any twenty-something, and you’ll likely hear the same refrain: “Kids today have it so much harder than we did.” In many ways, they’re right.
Home prices now run at five times the median income, up from roughly three times in the 1990s, according to Harvard’s Joint Center for Housing Studies. The typical first-time homebuyer is now 40, compared to 29 three decades ago. Add to that the median $20,000 in student loan debt, $500 more in credit card balances than millennials carried at the same age, and youth unemployment rates that have recently ticked above the national average for the first time in decades. And that’s before AI fully reshapes the job market.
Yet, give Gen Z credit where it’s due. Unlike previous generations, they’re making a deliberate effort to manage their money responsibly. They’re saving at triple the rate of young adults in the 1990s, and the share of twenty-somethings with retirement accounts has climbed 36% over the same period. Investing has gone mainstream for them: while only 8% of early-career earners invested outside employer plans a decade ago, that figure jumped to 40% in 2025, per the JPMorgan Chase Institute. They’re also earning more. Median incomes for people in their 20s and 30s are up 19% since the 1990s. A college degree still pays off, with bachelor’s degree holders earning 59% more than high school graduates. Confidence in higher education remains strong, too, with 90% of college students believing their degree will prepare them for the workforce. On top of that, they’re better insulated from financial catastrophe: only 15% of young adults lack health insurance today, down from nearly a quarter in the late 1990s.
But good intentions don’t guarantee sound outcomes. My growing concern is that Gen Z struggles to separate legitimate financial guidance from biased—or outright predatory—noise. This cohort has been sold the myth that “buy now, pay later” is a savvy shopping strategy. Fifty-nine percent use BNPL services, yet 57% of those users have already missed a payment as of early 2026, according to LendingTree. What’s marketed as interest-free often ends up racking up fees and hidden interest. Meanwhile, frictionless payment tech like Tap to Pay makes spending effortless but obscures the reality of credit cards charging a near-record 22.3% APR. Many have also flocked to highly speculative assets: roughly half of U.S. Gen Z has owned or traded cryptocurrency, compared to about a quarter of those in their 50s and 60s. Online gambling and prediction markets are equally popular, with 69% of 18- to 26-year-olds participating—and a troubling quarter mistakenly classifying gambling as a legitimate investment.
Much of this stems from where they get their financial education. Seventy-nine percent turn to TikTok and Instagram for money tips, conditioning them to expect quick wins rather than steady, long-term growth. FinTech apps deliver seamless experiences, but convenience doesn’t equal financial wisdom. Building real wealth requires time-tested principles, not viral trends.
I’ve spent over 30 years teaching young adults how to navigate personal finance, and this May, I’m releasing the 30th anniversary edition of my book, *Get a Financial Life: Personal Finance in Your Twenties and Thirties*, updated specifically for Gen Z. If we want this generation to thrive financially, we must equip them with the critical thinking skills to cut through the hype, recognize predatory practices, and embrace strategies that actually build lasting security. The tools are there—they just need the right guidance.