Almost half of Gen Z (49%) has decided saving for the future is “pointless,” according to a recent report. This will not end well.
This sentiment is not isolated to the youngest generation of adults. A feeling of financial unease is growing, presenting significant challenges for individuals and employers alike as they navigate compensation and financial well-being.
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The Data
A staggering 77% of U.S. adults reported feeling financially insecure in a May survey from Bankrate. This highlights a continued rise in financial anxiety that has been building since 2023. This widespread insecurity reflects a troubling national mood regarding personal finances.
More than one-quarter of the 2,260 respondents stated they would need to earn $150,000 or more annually just to feel financially secure and comfortable. This figure is a stark contrast to reality for most Americans.
The Widening Gap
The desired income for security is nearly double the average full-time salary in the U.S. for 2023, which was $81,515, according to data from the U.S. Bureau of Labor Statistics (BLS) cited by Bankrate. The massive gap between the salary needed to feel stable and the average national income underscores the financial pressures many households face.
Bankrate pointed to the ongoing erosion of purchasing power by inflation as a primary cause. Referencing Consumer Price Index (CPI) data from the BLS, the company showed that $100,000 in January 2020 had the same buying power as $124,353 in April 2024. This consistent decline in the value of a dollar makes saving and financial planning feel like an uphill battle.
Key Takeaways
- Generational Despair: A Credit Karma report finds that 49% of Gen Z believes saving for the future is pointless.
- Widespread Insecurity: A majority of American adults (77%) feel financially insecure.
- The “Security” Number: Over 25% of people feel they need an income of $150,000 or more to be financially comfortable, nearly double the national average.
Inflation’s Impact: The purchasing power of money has significantly decreased, with $100,000 in 2020 being equivalent to over $124,000 just four years later
I explore both the founder and investor perspectives on wealth-building in Investor vs. Founder.