Generational wealth within the Gen Z community
Generation Z, the cohort born roughly between 1997 and 2012, is rapidly shaping the world’s cultural, economic and technological landscape. Defined by their digital nativism and diverse perspectives, Gen Zers assert their influence across various domains, from consumer behavior to political activism.
The topic of financial literacy and how to acquire it is quite popular among Gen Z. The 18 to 26 age group is finding ways to be able to afford more than the necessities as a result of increased taxes, insurance costs and grocery bills that average Florida households spend $287 on weekly and approximately $1,148 on monthly.
Some were fortunate to have parents or guardians who understood financial literacy well. These were the caregivers who invested in stocks for their children and established their credit early, enabling them to make a down payment on a mortgage by the time they turned 18. However, not every member of Generation Z has such advantages. As a result, many had to independently seek ways to gain financial literacy.
Today, media serves as the primary source of education. Platforms like TikTok, Instagram, Facebook, Twitter and others are where Generation Z primarily gathers information. Many Gen Zers demonstrate entrepreneurial inclinations, using digital tools to launch businesses and pursue personal projects. They prioritize independence, seeking avenues for self-expression and creativity. This drive often leads them to explore passive income opportunities, such as starting home-based nail technician services or creating and selling their own clothing brands.
Nail technician Hailey Ramirez, a Tampa native, says if it wasn’t for her business, things would be much harder for her and her family.
“I take care of my nieces and nephews. I cook dinner and buy them new clothes for school. With the state of the current economy, if I didn’t have my nail business as a passive income, I don’t know if we’d make it,” she said.
However, not everyone possesses the same artistic skills as some Gen Zers who excel in design and artistic expression. Therefore, what strategies have they devised to generate significant passive income? With the aid of social media, Generation Z has effectively navigated how to do so.
For those who lack the creative skill set to use their talents for passive income, purchasing property and investing in stocks have emerged as viable alternatives.
According to NASDAQ, 73% of Generation Z owns stocks, making it the most prevalent investment choice among this demographic. The survey also revealed that 15% of Gen Z investors opt for ETFs, 30% hold bond investments, and 22% invest in index funds. Given their affinity for technology, Gen Z is especially drawn to newer investment options, with a significant 47% of the generation reported to own cryptocurrency stocks.
In 2023, slightly more than a quarter (26.3 percent) of adult Generation Z individuals owned a home, marking a slight increase from 26.2 percent in 2022, according to Redfin. During the same period, millennials’ homeownership rate increased from 52 percent to 54.8 percent, and Gen X saw an increase from 70.5 percent to 72 percent in homeownership rates.
Twenty-year-old Elenita Gonzalez is a Houston native as well as a social media influencer who focuses on health and self-care management. She bought her first home in 2024. “I wouldn’t have been able to do this without the help of the money that I got from becoming an influencer,” Mena said. “The full-time job I had wasn’t paying enough but I knew I did not want to rent homes for the rest of my life. Landlords can raise prices any time they like. When I have kids, I want them to be set for life. I don’t want them to have to worry about how they will survive in this economy. And for that, I have to start early.”
As prices continue to rise, Generation Z has discovered strategies to adjust. They aim to start early and surpass the achievements of their parents, laying the foundation for creating generational wealth that extends to their descendants.