Unlocking the Power of Generation Z: Insights from The Economist and Logica's Future of Money Study

A recent article in The Economist, “Generation Z is unprecedentedly rich,” looks at Gen Z’s growing economic power and how they are quickly becoming a dominant force in the workforce and society. In comparison, Millennials were poorer at this stage in their lives, as were Boomers. At Logica, we have been tracking Gen Z for many years in our Future of Money Study, and have definitely discovered that this generation is unique when it comes to money—in more ways than one.

Gen Z’s Complexity and Uniqueness 

In the United States, the number of Gen Z workers is poised to surpass that of retiring baby boomers, so we can only expect their buying power and wealth to grow in years ahead. The Economist article discusses that despite stereotypes, this generation exhibits complex traits, shaped by economic circumstances and societal changes. We talked more about this recently in Advisorpedia and in The Financial Brand, highlighting this generation’s diversity and resistance to categorization—and their cautious approach to finances, influenced by cautionary tales and media coverage of previous generations’ financial challenges.

Gen Z and Building Wealth

Despite their caution, Gen Z also displays remarkable financial success and is reshaping the workplace, according to “Generation Z is unprecedentedly rich.” Unlike millennials, who faced economic hardships, Gen Z enters a job market with low youth unemployment and strong wage growth. They prioritize practical education and vocational qualifications, benefiting from tight labor markets and higher incomes. 

However, as the article points out, the economic strength of Gen Z doesn’t eliminate concerns about rising college costs and housing expenses. Our Logica Future of Money Study found that many Gen Zer’s will live with family to make ends meet when needed. 

Gen Z’s Attitudes Toward Work

It is important to note that Gen Z’s attitude towards work differs from previous generations, viewing it more as a right than a privilege. The Economist article points out that they prioritize self-care and work-life balance, leading to trends like “quiet quitting” and fewer entrepreneurial ventures. With every generation, there seems to always be some skepticism or question on how they will perform in the work place.  Older generations suggest that Gen Z may show fewer signs of innovation—raising questions about the sustainability of their economic advantage. But for now, Generation Z seems to be enjoying the benefits of their apparent financial prosperity.

The Economist notes that “As the generation becomes more influential, companies, governments and investors need to understand it.” At Logica, we have partnered with many financial institutions, fintech firms and other growing organizations to help them understand what products and services will best serve Gen Z. Also, we have Gen Z insights available in our Logica Future of Money Study, available through the Insights Kit. Reach out to us to learn more!