In this article, Taiye Akin-Akinyosoye delves into how Gen Z is navigating the financial challenges of today’s world. The headline - It’s Not What It Used to Be, But Not How We Think It Is. Taiye—a specialist in youth audiences with extensive experience on financial projects—breaks down the realities facing Gen Z and uncovers how financial brands can step up to support this generation in more meaningful ways.
Gen Z has rapidly emerged as a driving force in shaping modern culture—from the ways we work to how we engage with brands and spend our leisure time. Now, as they come of age, their approach to finances is challenging long-held assumptions about wealth, savings, and traditional milestones like buying a home or planning for retirement.
However, many financial brands remain out of step with this generation’s evolving mindset, still relying on outdated strategies that appeal to Boomers or Gen X. As Gen Z navigates a world of rising living costs, economic uncertainty, and a sea of conflicting financial advice, how can brands stay relevant?
Nihilists?
Gen Z’s Financial Landscape: New Challenges, New Opportunities
With inflation at record highs and property prices far out of reach for many young people, Gen Z faces an uphill battle in securing the financial stability that previous generations might have taken for granted. These challenges are fuelling an increasing sense of cynicism, with many in Gen Z doubting that they’ll ever reach traditional life-stage milestones like homeownership or retirement.
But that doesn’t mean they’ve given up hope. Instead, Gen Z is finding new ways to navigate the financial landscape—relying on side hustles, alternative investments, and digital tools to manage their money on their own terms. Financial brands that continue to push outdated narratives risk alienating this key demographic, while those that embrace innovation could find themselves at the forefront of a new financial frontier.
Who to trust?
Mistrust and Misinformation: A Digital Minefield
In today’s digital-first world, Gen Z has unprecedented access to financial advice—but not all of it is good. The rise of "finfluencers" on platforms like TikTok has blurred the line between sound advice and high-risk gambles. Recently, several of these influencers have faced legal action for peddling get-rich-quick schemes, leaving their young followers burned and even more sceptical about who to trust when it comes to their money.
This presents both a challenge and an opportunity for financial brands. Trust is now a critical commodity. Companies that can position themselves as transparent, reliable, and genuinely helpful will win over this cautious and wary generation. It’s no longer enough to just offer products; brands need to become trusted partners in Gen Z’s financial journey.
Photo credit: Andrew Tate
Look who’s talking
Fintech Disruptors: Speaking Gen Z’s Language
Enter fintech disruptors like Cleo, which have tapped into the needs of Gen Z with a combination of humour, practicality, and technology. These brands are meeting Gen Z where they already are—on their smartphones—with tools that make managing money feel intuitive, not intimidating. From budgeting bots to notifications that give them real-time control over their spending, disruptors like Cleo are offering something that traditional financial institutions have failed to provide: simplicity and convenience.
Legacy financial brands, on the other hand, are struggling to connect. Their reliance on formal language, complicated products, and impersonal customer service is alienating a generation that craves authenticity and ease of use. If traditional institutions want to stay relevant, they need to adopt the digital-first, value-driven approach that has propelled these fintech brands to success.
Photo credit: "Money Never Felt Like Monzo"
Soft-Life
From Passion Projects to Profits: The Gen Z Hustle
Resilience is at the core of Gen Z’s financial strategy. Faced with economic challenges, this generation is turning passion projects into viable income streams. From content creation and digital art to fashion resale and freelance gigs, Gen Z has found ways to monetise their creativity and interests, transforming side hustles into serious business ventures.
This shift is emblematic of a broader change in how Gen Z views financial success. For them, financial health isn’t just about saving or investing—it’s about building a lifestyle that feels fulfilling, even if it doesn’t follow the traditional playbook. Brands that can support this entrepreneurial spirit and offer tools that enable flexibility and creativity will resonate deeply with this audience.
Alternative Investments
Tech and Value-Driven Investments: The New Path to Financial Independence
Gen Z is more financially savvy than they’re often given credit for. They’re bypassing traditional brokers and diving into investing through platforms that make stock trading, cryptocurrency, and alternative assets accessible. These platforms, which break down complex financial concepts and reduce barriers to entry, are reshaping how this generation approaches wealth building.
But it’s not just about the bottom line. Gen Z’s investment choices are often driven by their values. They are more likely than previous generations to invest in companies that align with their beliefs—whether that’s sustainability, ethical practices, or inclusivity. For brands, this values-driven approach represents a huge opportunity. Companies that can position themselves as purpose-led and transparent will attract Gen Z investors who are not just looking for financial returns, but also for alignment with their personal ethics.
Photo credit: RARES
Winning Over Gen Z: The Path Forward for Financial Brands
If financial brands want to capture Gen Z’s attention—and loyalty—they need to rethink their approach. Gen Z demands more than just a product; they want financial solutions that are user-friendly, flexible, and aligned with their values. Brands that continue to cling to old models will struggle to connect, while those that lean into innovation and transparency will thrive.
For traditional financial institutions, this might feel like a daunting shift, but the opportunity is massive. By embracing digital platforms, offering straightforward communication, and demonstrating a commitment to ethical practices, brands can build the trust that’s crucial for engaging with this generation.
Ultimately, Gen Z isn’t turning away from the idea of financial independence—they’re just redefining it on their own terms. Brands that understand this and provide the tools to help them succeed will find themselves at the forefront of the financial revolution.
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