Millennials and Gen Z both are rewriting the rules when it comes to managing money, but not in the same way. We all live in a time when we’re facing rising living costs, student debts, an unpredictable economy, and overall instability. However, despite both being young and tech-savvy, their approach to money is totally different.
The way they budget, invest, and plan for the future shows that the two groups have very different views on the world. Here, we’ll discuss the approach to money of millennials versus Zoomers and point out their similarities and differences.
Different Economies, Different Mindsets
Millennials are the generation born between 1981 and 1996 and came of age during the 2008 financial crisis. Many graduated into a terrible job market with high student loans, little job security, and very competitive job market. Expectedly, this made them more cautious and even sceptical when it comes to the traditional financial systems.
Zoomers (the generation born between 1997 and 2012, is a generation that was still in school during the Great Recession of 2008, so they watched their older siblings and parents struggle. Just as they were entering adulthood, they witnessed the financial chaos and all-around business slowdown of the pandemic – which made them cautious but more proactive than millennials.
Gen Zs approach money with a more open-minded and experimental mindset. For example, millennials rely more on long-term savings plans and spreadsheets, while zoomers often turn to finance YouTube and TikTok explainers to get the basics. Sometimes, that even means watching a compilation of roulette games not for entertainment, but to learn about probabilities, risk-reward ratio, and decision-making. Finance education for zoomers looks much different than it did for millennials and the generations before them.
Different Budgeting Styles
Millennials were early adopters of budgeting apps, so it’s not to say that they’re unfamiliar with this “new tech”. However, many still rely on set savings goals and spreadsheets and often treat personal finance like a long-term puzzle where you have to find the right way to win in the end. An enormous percentage of millennials were raised with the ‘don’t spend what you don’t have’ mindset, and, arguably, this is the biggest difference between them and Zoomers.
Generation Z people take a different approach to money. They often lean on auto-savings tools and real-time banking apps – and it just seems like they don’t care as much for the long term. Sure, the investments might pay off, but they’re more opportunistic investors than millennials.
They are often influenced by TikTok and Instagram finance influencers, which have a major impact on how they understand credit, savings, and budgeting. It’s not to say they’re careless – contrary, many of them started budgeting in their early teens. They just don’t stress as much about it.
Spending Habits: Experiences vs Possessions
Milennials were once mocked for spending too much on avocado toast, good coffee, and travel, but numerous studies have shown that they value experiences more than possessions, and they’re likely to delay big purchases such as homes and cars to enjoy life now. Statistically, they also save more than previous generations for weddings, family life, and family travel.
Gen Zs are less interested in ‘living large’. Obviously, they spend a lot more on travel when compared to the boomers and every other generation before millennials, but they’re more drawn to value-based spending and are more willing to invest in products they believe in or local businesses.
To the surprise of many, Gen Zs are actually more likely to own a house than millennials. A recent study has shown that Zoomers outpace past generations when it comes to home ownership, but a big part of it is due to inherited wealth from their parents.
How do Millennials and Zoomers see Debt?
Both millennials and zoomers face huge amounts of student and other debts, as well as rising costs of living. But, it’s millennials who were hit the hardest by student loans and were poised with a jobless recovery, while Gen Zs seem more focused on avoiding debt together.
One of the reasons zoomers weren’t hit with as strong ‘debt fatigue’ is that by the time they entered the job market, it had already recovered from the crisis caused by the recession. Millennials, on the other hand, have been paying off credit cards and loans for a decade, and are still behind on savings. Gen Zs are more likely to avoid credit cards altogether or deal with it with less stress than millennials.
| Category | Millennials | Gen Z |
| Budgeting Style | Spreadsheets, long-term saving goals | Real-time apps, auto-saving tools |
| Learning Finance | Books, blogs, traditional education | TikTok, YouTube, influencers |
| Spending Focus | Experiences, travel | Value-based, local, ethical spending |
| View on Debt | Hit hard by loans, cautious | Try to avoid debt, less credit use |
| Retirement Approach | Traditional pension plans | FIRE, side hustles, passive income |
What About Retirement?
Millennials around the world mostly still plan in their 60s if they can. They contribute to pension schemes and retirement accounts, but many have grown uncertain about full retirement due to rising costs.
Zoomers are more into FIRE – Financial Independence, Retire Early – a more radical approach that includes:
- Aggressive saving, even if it means cutting hard
- Remote or freelance work to live cheaper
- Passive income through crypto, stocks, or other methods
- Side hustles for extra cash
The idea behind FIRE is to quit traditional work by 40, but only time will tell which of these generations will reach its goals first.
In the end, there’s no right or wrong way – just different paths due to different realities. Both millennials and Zoomers are trying to build meaningful and successful lives, and they’re doing it the only way they know how.
