Gen Z has been priced out of a future, so we invest in the present

USA Today

27-05-2025

Gen Z has been priced out of a future, so we invest in the present | Opinion With a financially stable future out of reach, it's no surprise that much of my generation has adopted a sort of economic nihilism.
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Gen Z suffers from more anxiety and loneliness than previous generation
According to a recent study, Gen Z struggles with their mental health, around 20% more than millennials do.
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With my student loan debt mounting and homeownership a far-off dream, I stared at the SSENSE webpage on my laptop, wondering if I deserved to buy a $600 pair of Marni loafers through Klarna, a buy now, pay later financial service provider that we've become a bit too familiar with. I didn't buy the shoes – proof I haven't lost my mind completely – but the foreplay reflected a shift in financial priorities and conditions for people my age. Does the American dream still uphold a 20-something's right to buy shoes?
For many Generation Zers, those born between 1995 and 2012, the American dream has been recalibrated. Dreams of owning a single-family home guarded by a white picket fence have softened to hopes of renting out a decent-sized apartment, hopefully with just one roommate. Kids are out of the question. Summer vacations abroad are now only pipe dreams for those whose lives aren't subsidized by their parents. Splurging on groceries and fresh produce is a new form of luxury, especially for those whose Erewhon is Whole Foods.
Consumer prices have increased in recent years due to inflation. In 2022, the U.S. saw one of the highest rates of inflation in 40 years. Despite wage increases and projections of economic stability from experts, Americans still feel financially spread thin. Ballooning rent and housing prices certainly don't help.
Many Gen Zers are entering adulthood in a country rife with economic disarray, a reality our Millennial forebears know all too well. The promises offered to us in our childhood – that if we get good grades, go to college, get a degree and land a good job, we'd be set for life – ring hollow. More than 4 in 10 Americans under 30 say they're "barely getting by" financially, while just 16% report doing well or very well, according to a Harvard Institute of Politics Survey.
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With a financially stable future out of reach, it's no surprise that much of my generation has adopted a sort of economic nihilism – a set of practices that prioritize splurging on little luxuries now, instead of saving up for a future that may never come to fruition.
Gen Z is crippled by student loan debt
Student loan debt is one of the biggest plagues on our wallets. While Gen Zers are less likely to have student loan debt, rising education costs mean we start out with more debt early on than Millennials did. Student borrowers who were 20 to 25 in 2022 had an average balance of $20,900 in student loan debt, a 13% higher balance than Millennials did at the same age.
We got a false sense of hope when student loan debt forgiveness was dangled over our heads, only to have it yanked from above us when the Supreme Court struck it down. Matters got even more serious when it was announced that the federal government would resume involuntary collections for borrowers in default on May 5. No rest for the weary, I guess.
What makes student loans particularly challenging for Gen Z is the instability of the job market. Finding work is a fruitless endeavor. From DOGE blindly slashing through federal agency budgets to big tech corporations wielding AI as a replacement for human workers and placation for their own greed, job stability and steady earnings remain elusive.
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I've seen my peers lose entry-level jobs in communication and tech just as quickly as they got them. I've watched my friends who majored in computer science, engineering and other 'useful' areas of study succumb to hopelessness as their degrees collect dust with virtually nothing to show for them besides mounting debt.
With myriad financial stressors coming from all directions and a recession looming, one would think Gen Zers would lead lives of frugality, pinching pennies in every way we can. Instead, I've noticed the exact opposite.
Gen Z has been priced out of a future, so we invest in the present. This economic disillusionment leads us to some questionable consumer habits. We're all living above our means, spending money that could otherwise be saved and invested for an elusive tomorrow.
Consumer shopping habits reflect our economic nihilism
When I asked my friends about their own impulsive or irresponsible spending habits, they confirmed what I already knew to be true: that creating pleasure in the present is paramount. Many of my friends have a habit of putting over-priced concert tickets on their credit cards, something I'm also guilty of (thank you, Ticketmaster).
A friend of a friend paid for a trip to Japan in 12 installments. Another friend signed a $2,000 per month lease in New York on a salary of less than $50k, and put themselves into even more debt when they decided to become a fitness instructor. The most common habit among my friends is making big, impulsive purchases on credit and worrying about them later. This explains why Gen Z has the highest average personal debt when compared to other generations.
When asked what motivates these purchases, the answers I got all had a similar YOLO attitude. The milestones other generations were achieving at this age – first house, first 'real' job, kids – all seem untenable. Why spend our 20-something years playing an endless game of catch-up? Why not try to piece together a semblance of an enjoyable life now? Seeing wealthy influencers our age lounging in the Mediterranean or frolicking up and down the streets of Paris, dripped in the trendiest fashions, makes it hard for us not to want the same.
Older generations may look at our spending habits and grimace. But to understand Gen Z's economic nihilism is to understand the hopelessness that comes with being thrust from one unprecedented crisis to the next, one broken promise after another.
Whenever the hopelessness gets too heavy, though, I try my best to remember that there have been worse times in history and in almost every instance we were able to bounce back to some degree. I like to believe this time will be no different. We can find solace in knowing we're not alone in our struggles. Maybe, fellow Gen Zers, it isn't wise to throw our whole future away. Let's hold off on those overpriced shoes. Maybe it's best we practice just a little more financial discipline as best we can and add just a touch of radical optimism – it's really all we have.
Kofi is a columnist and digital producer for USA TODAY and the USA TODAY Network. He still wants to buy those Marni loafers.