Generation Z is entering adulthood at a time when the financial landscape looks very different from the one their parents and grandparents experienced.

They are navigating higher housing costs, an evolving job market, student debt, inflation, changing expectations around work and lifestyle, and an overwhelming amount of financial information available at their fingertips.

But there’s another side to the story.

Gen Z appears to be particularly engaged in financial topics.

They are thinking about money earlier, talking about it more openly, and looking for ways to take control of their financial futures. At the same time, many are struggling to turn financial knowledge into long-term financial confidence.

So, what does Gen Z’s relationship with money look like—and what can we learn from it?

Gen Z Is Entering a Different Financial World

For previous generations, the traditional financial roadmap was relatively straightforward: go to college or enter the workforce, get a job, buy a home, save for retirement, and gradually build wealth.

Gen Z is discovering that following that roadmap may not be easy.

The cost of housing, education, healthcare, and everyday necessities has changed significantly. In Bank of America’s 2025 Better Money Habits study, 51% of Gen Z respondents said the high cost of living was a barrier to financial success. More than half also said they didn’t have enough emergency savings to cover three months of expenses.

As a result, many young adults are redefining what financial success looks like.

For some, it may mean buying a home later. For others, it may mean prioritizing flexibility, avoiding unnecessary debt, or focusing on financial confidence rather than traditional milestones.

They’re More Comfortable Talking About Money

One of the most interesting characteristics of Gen Z is their willingness to discuss money.

Salary, budgeting, debt, investing, credit scores, and financial struggles are no longer necessarily private conversations. Social media has made financial education more accessible—and has also created a new generation of financial content creators.

Gen Z can find information about almost any financial topic with a quick search.

The challenge?

Not all financial information is good financial advice.

Social media can be an excellent starting point for learning, but a viral video isn’t necessarily a financial plan. Investing strategies, tax decisions, debt repayment, and retirement planning are highly personal. What works for one person may be completely inappropriate for another.

Learning is valuable. Applying that information thoughtfully is even more important.

Saving Is a Priority—but It’s Not Always Easy

Gen Z understands the importance of saving, but today’s cost of living can make it difficult.

In 2025, 72% of Gen Z surveyed by Bank of America said they had taken steps to improve their financial health during the previous year. The more common actions included saving money and paying down debt.

Yet many young adults are still balancing competing priorities:

• Building an emergency fund
• Paying down student loans or credit cards
• Saving for a home
• Contributing to retirement
• Investing
• Paying rent and everyday expenses
• Enjoying life and maintaining a social life

It’s not necessarily that Gen Z doesn’t want to save.

It’s that saving can be difficult when there isn’t much left over after the bills are paid.

That makes developing good habits—even with small amounts—especially important.

Investing Is Becoming More Accessible

Technology has dramatically changed the way younger generations invest.

Opening an investment account can take minutes. Information about stocks, ETFs, retirement accounts, and other investments is readily available online.

That’s a positive development—but accessibility also comes with responsibility.

Gen Z investors need to understand the difference between investing and speculating.

Building long-term wealth typically isn’t about finding the next hot stock or trying to time the market. It’s about understanding risk, diversification, time horizon, fees, taxes, and the power of consistency.

(Diversification cannot ensure a profit or protect against loss in a declining market. It is a strategy used to help mitigate risk.)

And Gen Z has one major advantage that older investors can’t get back:

Time.

Starting to invest early—even if the initial amounts are small—can give compound growth decades to work.

Retirement May Feel Far Away—but It Matters Now

Retirement can seem almost impossible to imagine when you’re 22 or 25.

Why worry about something that could be 40 years away?

Because time is one of the greatest advantages a young investor has.

A person who begins contributing to a retirement account early in their career has significantly more time for those contributions and their investment growth to compound.

That doesn’t mean a young adult needs to have their entire retirement plan figured out immediately. It simply means that starting early can matter more than starting big.

Even contributing a small percentage of a paycheck to a 401(k) or IRA can help establish a habit that grows alongside income.

And if an employer offers a retirement plan match, understanding that benefit should be a priority.

Gen Z Is Also Redefining “Financial Success”

Perhaps the biggest difference is that Gen Z doesn’t typically define financial success the same way previous generations did.

For some, success means owning a home.

For others, it means having the freedom to travel, working remotely, avoiding debt, building a business, having a flexible career, or simply having enough money in the bank to feel secure.

There isn’t one correct definition.

Financial planning should ultimately be about helping someone use their money to support the life they actually want to live.

That may look different for every generation—and every individual.

The Importance of Financial Education

Gen Z has access to more financial information than any generation before it.

But access to information isn’t the same thing as financial literacy.

Understanding the basics can make a significant difference:

Budgeting: Know what comes in, what goes out, and where your money is going.

Credit: Understand credit scores, interest rates, credit cards, and the long-term cost of carrying a balance.

Saving: Establish an emergency fund and create separate savings goals for short- and long-term needs.

Investing: Learn how risk, diversification, fees, and time horizon affect investment decisions.

(Diversification cannot ensure a profit or protect against loss in a declining market. It is a strategy used to help mitigate risk.)

Retirement: Take advantage of employer-sponsored plans and understand how much you’re contributing.

Taxes: Know how taxes affect your paycheck, investments, and retirement accounts.

Insurance: Understand the purpose of health, auto, renters/homeowners, disability, and life insurance.

These aren’t necessarily complicated concepts—but they can have a tremendous impact over the course of a lifetime.

Parents Can Play an Important Role, Too

For parents of Gen Z adults, financial conversations can sometimes feel uncomfortable.

Should you help them financially? Should they pay their own bills? Should you encourage them to invest? Should you help with a down payment?

There isn’t one right answer.

But one of the most valuable things parents can provide isn’t necessarily money—it’s financial knowledge.

Talking openly about budgeting, saving, investing, credit, debt, taxes, and long-term planning can help young adults make better decisions when they’re eventually managing their finances independently.

And when appropriate, involving adult children in family financial conversations can help them understand the decisions and values behind the family’s financial plan.

Gen Z’s financial story isn’t simply one of financial anxiety or financial struggle.

It’s also a story about adaptability.

They’re facing a complicated economic environment, but they’re also looking for solutions. They’re learning about money online, talking about finances more openly, changing their spending habits, and thinking about financial futures earlier in life.

An important next step is turning that awareness into action.

You don’t have to be wealthy to start building good financial habits. You don’t need to know everything about investing. And you don’t need to have your entire future mapped out in your 20s.

Start where you are. Learn as you go. Build good habits. Ask questions. And make financial decisions that support the life you want to create.

Philip Lockwood | Founder + Managing Partner

Address: 1501 Ingersoll Ave. Suite 201  Des Moines, IA 50309 Phone: 515-274-8006

Email: Plockwood@parklandrep.com Website: Lockwood Financial Strategies  Securities offered through Parkland Securities, LLC, member FINRA (FINRA.org) and SIPC (SIPC.org). Investment Advisory services offered through SPC, a Registered Investment Advisor. Lockwood Financial Strategies, LLC is independent of Parkland Securities, LLC and SPC