Posted: August 24, 2023

In our previous discussion, we delved into the Deloitte Gen Z and Millennial Survey Report of 2023, uncovering the expectations these generations hold for businesses. Today, we are diving into the financial concerns highlighted in the same report.

Common Ground: Cost of Living

Both Gen Z and Millennials share a common concern at the forefront of their minds: the rising cost of living. In an era of escalating expenses, this challenge takes center stage. However, as we delve further, the nuances of their financial worries come into focus.

Gen Z’s Unique Worries

For Gen Z, the cost of living is the beginning. They are grappling with a combination of concerns, which reflect the realities of their time. Their biggest worries are unemployment, climate change, mental health, and crime. These young individuals are not focused on personal wealth; they are equally concerned about the broader societal issues that affect their lives.

Millennials’ Distinct Financial Worries

Millennials, on the other hand, share the concern of cost of living with Gen Z. However, their list of top concerns diverges thereafter. They worry about climate change, unemployment, healthcare, disease prevention, crime, and personal safety. This generation has seen the economic landscape develop, which has shaped their financial priorities.

Optimism Amidst Struggle

Despite the financial challenges both groups face, it is intriguing to note that Gen Z tends to have a more optimistic outlook on their financial futures when compared to Millennials. However, the rising trend of living paycheck to paycheck is a cause for concern among both cohorts. This trend has surged since the last survey in 2022, paralleling the highest inflation rates witnessed in the past four decades.

The Role of Side Jobs and Adaptability

In the pursuit of managing financial pressures, a growing number of individuals from Gen Z and Millennials are turning to side jobs. Through using social media to sell and participating in the gig economy services like food delivery and ride sharing, these generations are showing their adaptability. While financial gain motivates some, others have found innovative ways to monetize their passions.

Shaping a New Work Paradigm

The survey also reflects a generational shift in caregiving values. Rather than relying on nursing homes, Gen Z and Millennials are taking on the responsibility of caring for their elderly relatives. This shift underscores their deep-seated values and underscores their determination to create a better future for themselves and their loved ones.

Navigating Uncertainty and Perceptions

As inflation affects the costs of everyday life, caring for elderly relatives, and managing side jobs, these generations express difficulty in planning for their futures. However, amidst these concerns, a paradox emerges. While studies indicate that a substantial portion of the workforce believes it is an opportune time to seek new jobs, over half of Gen Z and Millennials believe it is becoming harder to find a job, get promoted, or buy a house.

Leadership’s Crucial Role

This is where leadership plays a pivotal role. The optimism or pessimism displayed by business leaders influenced the perceptions and attitudes of Gen Z and Millennials. To create a positive impact, leaders must exhibit confidence and provide a clear path forward. Just as one senior leader’s positive attitude turned around a dire situation, today’s leaders have the power to shape perceptions and motivate these generations.

Conclusion: Rising to the Challenge

As we analyze these insights, it’s clear that Gen Z and Millennials are navigating a complex financial landscape. They’re learning to adapt, finding innovative ways to supplement their incomes, and addressing issues like caregiving head-on. While uncertainty prevails, it’s essential for leaders to instill optimism, confidence, and a spirit of collaboration. By acknowledging the challenges and working together, we can guide these generations toward a brighter future.