By Jorge Vazquez
23 Sep 2023, 1:22 PM EDT
A segmentation study of Generation Z 2023, from Ernst & Young LLP (EY), reveals that money continues to be a growing concern for members of this generation, as financial uncertainty, concern about an uncertain future and distrust in large companies are driving generational anxiety to an all-time high.
“Right now, Generation Z is particularly important as the next generation of consumers, employees and citizens that will dramatically impact businesses today and in the future,” said Marcie Merriman, client strategy and cultural insights leader at EY Americas.
This third version of the Generation Z Segmentation Study collected information from more than 1,500 participants across the United States born approximately between 1997 and 2007 (currently ages 16 to 26).
The survey aimed to track Gen Z’s personal and professional interests and their perspectives on mental health, confidence, technology, career and lifestyle ambitions.
“Our research has consistently found that mental health is an ongoing challenge for Generation Z. As the generation moves into our core labor and consumer markets, several changes are occurring simultaneously,” Merriman said.
He added: “Older Generation Z are aging into their parents’ healthcare plans this year and are feeling the impact of financial independence amid economic uncertainty. “The factors are shaping your views on work and life and what success looks like.”
According to the study:
· Less than a third of Generation Z (31%) feel financially secure.
· More than half (52%) say they are very or extremely worried about not having enough money.
· The importance of making money has steadily increased year over year: 46% of respondents said it was a top priority compared to 32% in 2021 and 38% in 2019.
· More than a third (39%) said they were very or extremely stressed or worried about making the wrong decisions with their money.
· 69% rate their current financial situation as “fair” or worse, and 32% rate their current finances as bad or very bad.
· The EY report notes that recognizing the psychographic nuances within Generation Z can help companies better understand the diversity within their members and the different expectations they will drive for organizations wishing to engage them as employees and consumers.
For more details of the study, go here.
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