The Blog
Dear Boomers, Your Kids Are Now Your Colleagues and Clients
By Sarah Penney, Ms Millennial Money
It’s time to take the next generation seriously. As a Millennial, I’ve caught myself repeating tired stereotypes about Gen Z: they don’t work as hard as we did, they can’t focus beyond a TikTok video, they gamble their money on meme stocks, etc. And let’s be honest – this often stems from jealousy. I wish I’d had the courage to set boundaries early in my career and dive into the stock market sooner.
The reality is that Gen Z (ages 12-27) was born into a digital world and approaches life in new ways, and now, they’re maturing into adults who significantly contribute to the global economy. According to NielsenIQ, Gen Z’s spending power will grow faster than any previous generation, reaching an estimated $12 trillion by 2030 and surpassing Baby Boomer spending by 2029. In the US, the average 25-year-old earns $40,000 annually, higher than previous generations at the same age.
Unlike Millennials who often worked themselves to the bone for ‘the man’, research shows Gen Z is more selective about their employment. They move on quickly if not treated or compensated well and many also have multiple side hustles, leveraging the vast online marketplace.
This combination makes Gen Z a force to be reckoned with and the older members are now becoming key players in corporate life, working alongside (and sometimes managing(!)) Millennials, Gen X-ers, and Baby Boomers. Increasingly, they’re also becoming the clients and valuable customers of older generations.
With this in mind, it’s time to set aside outdated stereotypes and accept that Gen Z is steering the world in a new direction. We must adapt and embrace a new way to thrive. Our work culture is a good place to start, the concept of commuting to an office for 8+ hours a day and prioritising work above all else dates back to a time when families could afford to have just one person earning money and another looking after all other aspects of life. This isn’t the case anymore and we have to modernise our way of thinking about how our lives are structured.
When a 20-something colleague suggests a fresh approach, we need to listen instead of patting them on the head and assuring them that our ‘experience’ overrides their innovative thinking. Smart companies will gain their competitive edge by listening and putting their faith in Gen Z’s disruptive thinking.
This applies to the markets too. Gen Z is smart and is excited about investing their extra cash. To capture a piece of this pie, UK markets need to evolve to compete. Gen Z investors start younger than previous generations, showing a particular interest in newer assets, like crypto and NFTs, but also being enthusiastic about stocks and favouring companies like Tesla and Nvidia. The US market excels at attracting young investors, with companies like Tesla marketing themselves as exciting investments and engaging retail investors and generating massive inflows.
In contrast, UK markets appear stagnant, with few companies attempting to excite the next generation. We have a real opportunity here – by recognising Gen Z’s intelligence, spending power and appreciating their worldview we could revitalise UK markets!
The team at TEA is doing our part to try to drive this revolution. Our Gen Z Ambassadors are attending AGMs, they’re asking important questions, they’re getting the voice of the younger generation and making leadership teams confront the need to engage more proactively with their generation. Check out their experiences on our social channels!
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