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The Psychology of Money for Gen Z: How Gen Z’s attitudes towards money differ from previous generations

Feb 9, 2024 | Investors


For Generation Z, those born between the late 1990s and early 2010s, the approach to financial management, saving, and investing signifies a stark departure from their predecessors. This divergence is not merely a reflection of changing times but a complex interplay between technological advancements, socio-economic shifts, and global crises. In the UK, the financial attitudes and behaviours of Gen Z provide a fascinating lens through which to view the future of personal finance. This article delves into the core of Gen Z’s financial psyche, exploring how their attitudes towards money differ significantly from previous generations, and how recent economic downturns and the COVID-19 pandemic have sculpted these views. 

How Gen Z Differs from Previous Generations

The financial ethos of Gen Z in the UK starkly contrasts with the paradigms upheld by Millennials, Generation X, and Baby Boomers. This divergence is rooted in a blend of technological immersion, economic awareness, and a distinct value system that prioritises sustainability and ethical considerations over mere monetary gain.

From the outset, Gen Z has been immersed in a digital world. This exposure has fundamentally altered their approach to managing finances. Unlike previous generations who adapted to online banking and investing platforms, Gen Z natives find these tools not just preferable but essential. Research from the UK’s Financial Conduct Authority (FCA) highlights that a significant portion of Gen Z utilises mobile banking apps and online financial services as their primary means of financial management. This generation’s comfort with digital platforms extends to investing, where apps like Robinhood in the US and Trading 212 in the UK have become popular among younger investors for their user-friendly interfaces and accessibility.

Gen Z’s financial decisions are increasingly influenced by their values, particularly regarding environmental, social, and governance (ESG) issues. A survey by the UK Sustainable Investment and Finance Association found that Gen Z investors are more likely than any previous generation to invest in funds prioritising ESG criteria. This shift indicates a broader trend of seeking not just financial returns but also positive societal impact, reflecting Gen Z’s preference for aligning their investment choices with their ethical beliefs.

Despite being young, Gen Z has exhibited a surprising level of financial prudence. Growing up during the financial crisis of 2008 and coming of age in the tumultuous economic climate following the COVID-19 pandemic, this generation has adopted a cautious approach to spending and saving. A study by the National Association of Student Money Advisers revealed that Gen Z students are more likely to budget carefully and save money compared to their Millennial counterparts. This cautiousness is also reflected in their borrowing habits, with data indicating a preference for avoiding debt where possible, contrary to the ‘buy now, pay later’ culture that burgeoned among Millennials.

The Impact of Economic Downturns and the Pandemic on Gen Z

The financial attitudes and behaviours of Gen Z in the UK have been profoundly shaped by their formative experiences with economic instability, most notably the 2008 financial crisis and the recent COVID-19 pandemic. These events have not only influenced their outlook on money and investment but have also instilled a sense of resilience and adaptability in the face of financial adversity.

The COVID-19 pandemic has been a defining moment for Gen Z, impacting their education, entry into the workforce, and overall financial stability. A report by the Resolution Foundation found that young workers in the UK, including those from Gen Z, were more likely to be furloughed or lose their jobs during the pandemic. This experience has highlighted the importance of financial resilience, prompting many in Gen Z to seek out alternative income streams, from gig economy roles to online entrepreneurship.

The pandemic also accelerated Gen Z’s engagement with the stock market, partly due to increased savings from lockdown measures and a surge in the popularity of investment apps.

The economic uncertainty of recent years has also led Gen Z to reconsider traditional career paths. There’s a growing trend among this generation to prioritise job security, flexible working conditions, and opportunities for remote work. The pandemic has shown that many jobs can be done effectively from home, a revelation that aligns with Gen Z’s desire for a better work-life balance. This shift is likely to influence how businesses recruit and retain young talent, with implications for office culture and employee benefits.

The Quest for Financial Education and Empowerment

Amidst the backdrop of economic volatility and a rapidly changing financial landscape, there’s a growing recognition among Gen Z in the UK of the importance of financial education. This generation’s proactive approach to acquiring financial knowledge reflects a broader quest for empowerment, enabling them to navigate the complexities of modern economies with confidence and foresight.

Despite their digital savvy and cautious financial habits, there exists a notable gap in formal financial education for Gen Z. Many young people report feeling ill-prepared to make informed financial decisions, from managing debt to investing wisely. 

Technology plays a central role in Gen Z’s financial education journey. Online platforms and mobile apps offer interactive learning experiences, from budgeting and investing simulations to personalised financial advice. These digital tools not only cater to Gen Z’s preference for online learning but also offer the flexibility to explore complex financial concepts at their own pace. Moreover, the rise of financial influencers on social media platforms has introduced a new dimension to financial education, making it more relatable and engaging for a generation that consumes information predominantly through digital channels.


The financial landscape that Gen Z is navigating in the UK is markedly different from that of previous generations. Shaped by technological advancements, economic downturns, and a global pandemic, Gen Z has emerged with a distinct financial identity characterised by digital fluency, ethical investment preferences, and a cautious yet innovative approach to personal finance. Their journey through these tumultuous times has highlighted not only the challenges they face but also their resilience and adaptability.

Gen Z’s nuanced understanding of the interplay between finance and broader societal issues sets them apart. Their demand for financial literacy, coupled with a keen awareness of socio-economic inequalities and environmental concerns, signals a shift towards more conscientious and informed financial decision-making. This generation’s quest for financial education and empowerment is not just about navigating personal finance but also about advocating for a financial system that aligns with their values of equity, sustainability, and transparency.


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