For long, life plans and financial success have followed a predictable formula – get a stable job, save for a house, invest for retirement. But we all know that the landscape is changing rapidly. Traditional milestones, like home ownership, are slipping out of reach for Gen Z due to rising costs, student debt and uncertainty about the global economy.

So, how are Gen Z adapting and redefining their formula for financial security?

We undertook our own research with the ‘older’ segment of Gen Z – aged 22-28, financially independent and navigating the realities of managing their own money. We spoke with people that are actively making financial decisions, balancing multiple income streams, and redefining what financial security means in an unpredictable economy.

So, what is fuelling Gen Z’s financial mindset?

They are a multi-income generation

single job no longer resonates. Instead, they actively cultivate diverse income streams through freelancing, side hustles, and multiple jobs. They recognise that an adaptable and entrepreneurial mindset is needed to build a new kind of financial resilience in a rapidly changing market.

What does this look like?

• Job-hopping isn’t a red flag – it is a strategy. In a stagnant wage market, switching jobs is a deliberate move for financial growth.
• Side hustles aren’t optional – they are essential. Many Gen Zers engage in freelancing, gig work, or run small businesses in addition to a full-time job to diversify and extend their income streams.
• Financial security is not just about salary – it is about autonomy. Work-life balance, flexibility, and mental well-being take precedence over the traditional corporate climb, even if it doesn’t always lead to higher earnings.

What this means for businesses: Employers and financial services must adapt to Gen Z’s gig-economy mindset, offering financial tools, products and services that support multi-income lifestyles and the growing trend of micro retirement

‘Fast or Feast’ mentality

Gen Z’s relationship with money is profoundly influenced by economic uncertainty. In contrast to other generations, who gravitated toward minimalism and cautious debt management, Gen Z swings between periods of rigorous saving and resigned spending. This behaviour isn’t rooted in impulsivity or poor financial discipline; rather, it mirrors the reality of navigating an economic landscape marked by rising inflation and stagnant wages. Gen Z understands that small savings – such as cutting back on avocado toast or daily coffees, are insufficient to meaningfully impact their long-term financial stability.

What does this look like?

• Prioritising savings out of necessity rather than choice. Faced with economic instability – from the global financial crisis to the COVID-19 pandemic -Gen Z understands that nothing is guaranteed. They save aggressively, not just for the future, but as a safeguard against unforeseen crises.
• On the flip side, they embrace ‘YOLO’ (You Only Live Once) spending. With financial security feeling elusive, many Gen Zers splurge on experiences, wellness, and things that bring immediate joy.
• Success is defined differently. For this generation, wealth is not just about assets – it’s about access, flexibility, experiences and quality of life.

What this means for businesses:

Financial institutions and investment platforms must balance savings-focused messaging and products with flexible spending solutions. Traditional “save for retirement” messaging doesn’t resonate – instead, they want short-term gains, micro-investments, and on-demand financial planning tools.

Home ownership is becoming an elusive goal

 For many Gen Zers, owning a home has transformed from a realistic financial milestone into a distant aspiration. Rising housing costs combined with stagnant wages are pushing home ownership out of reach for many young adults.Increasingly, those who do manage to buy property rely heavily on financial assistance from the ‘Bank of Mum and Dad.’

What this looks like?

• The shrinking window of opportunity for home ownership has led Gen Z to delay or abandon the dream altogether.
• Many now prioritise renting, shared living, or alternative housing models over taking on long-term mortgage debt.
• Instead of tying their wealth to real estate, they are looking at flexible financial strategies that give them freedom and security without long-term obligations.

What this means for businesses: Real estate, banking, and mortgage providers need to rethink how they appeal to Gen Z – offering innovative and flexible solutions that align with their needs and realities, making the dream of home ownership more achievable.

How can businesses win over Gen Z?

If traditional financial strategies no longer resonate, how can companies effectively engage Gen Z?

1. ‍Balance immediate gratification with financial security: Gen Z balances YOLO spending with cautious saving. Financial services should design products that facilitate short-term financial wins, micro-investments, and immediate rewards alongside robust tools for ‘intelligent’ financial management.‍
2. Support multiple income streams: Gen Z thrives on diversified income strategies. Businesses must adapt by offering tailored products that empower, rather than penalise, those with non-traditional income streams – recognising flexibility as a strength, not a risk.‍
3. Offer flexible financial solutions: Traditional long-term financial commitments don’t appeal to Gen Z, who value flexibility and freedom. Businesses should consider providing adaptable solutions like short-term investments, rent-to-own options, and flexible mortgage and insurance terms that align with their desire for financial independence without long-term obligations.
4. ‍Provide transparent and authentic communication: Trust is crucial. Gen Z values transparency around fees, risks, and benefits – especially when every dollar counts. Businesses that clearly communicate financial details and offer genuine guidance rather than traditional marketing tactics will resonate more deeply

The bottom line: Gen Z’s financial playbook is different

Gen Z isn’t following traditional financial norms – they are creating their own. They are rethinking wealth, prioritising flexibility, and redefining spending habits.

For companies, this means rethinking everything from product pricing to financial messaging. Whether it’s finance, insurance, superannuation, real estate, or workplace benefits, the companies that understand Gen Z’s financial reality will win their trust – and their business.

Platform One is here to help you navigate this transformation. Let’s collaborate to future-proof your brand, build stronger connections with Gen Z, and unlock new growth opportunities. Get in touch today to start redefining loyalty for the next generation of consumers.