How Gen Zers Want Their Financial Lives to Be Different From Their Parents'

Unlike the prematurely middle-aged "young" adults in the Dr. Rick commercials for Progressive insurance, in real life, Gen Z is determined to not turn into their parents. A new survey from Citizens Bank found that Gen Zers have some big plans and dreams for what they want in life from their careers and personal finances, and it's often different from their parents' experience.

Every generation has its own unique challenges as they make their way in the world, start careers, and save and invest for the future. A recent Citizens Bank survey found that Gen Zers want to do a few things differently from their parents' generation.

Let's look at five big things that Gen Z wants to do differently from their parents in the realm of careers and money -- and how you can make these goals happen in your life.

1. Have a more fulfilling career (59%)

The Citizens Bank survey (conducted by Wakefield Research, data provided to The Ascent) found that 59% of Gen Zers said they want to have a career that is more personally fulfilling than their parents' generation. If you grew up watching your parents work long hours at jobs they didn't really love, it might feel important to do something that you enjoy -- even if it doesn't pay as much money.

How to make this dream a reality: One way to find a more fulfilling career is to increase your professional value. This could include earning a degree or certification, getting more training, or going to professional networking events.

There are many ways to invest time, effort, and sometimes money in your professional development. Learn more about career fields that you would like to try. Meet new people who are already working in the industries that you'd like to get into. Gen Zers have an important advantage in this area, because of their age. Don't feel bad if you haven't found your dream job by age 28. You have many years ahead to try new things and let your career journey unfold.

2. More vacations (51%)

More than half of Gen Zers told Citizens Bank that they want to "vacation more" as a way of doing things differently from their parents' generation. Many Gen Zers are less interested in "hustle culture" (working all the time and achieving big things in their careers) than they are in "soft life culture" (consisting of good work-life balance and enjoying the everyday routine). Taking more frequent vacations, even if that means earning less money, could be a trade-off that Gen Z is happy to make.

How to make this dream a reality: The best travel credit cards can help you earn points from your everyday spending. Then you can redeem these points to buy travel -- cheaper flights, free hotels, and exclusive travel perks. Just by changing the way you use credit cards, you can make your next vacation more affordable.

3. Pay off debts sooner (42%)

In the survey, 42% of Gen Zers said that they want to pay off debt sooner than their parents' generation. Some debt types are more damaging than others (like credit card debt), but it's true that too much debt can be stressful and can hold you back from pursuing other important financial goals.

How to make this dream a reality: Sometimes the best way to get out of debt is to visualize your monthly budget, see where your money is going, and find extra money to put toward paying off debt. The best debt payoff apps and budgeting apps can automatically connect to your bank account, track your spending, show you where your money is going -- and help you pay off debt faster.

4. Buy a house earlier (37%)

Homeownership is a big dream for many Gen Zers, who are facing some extra challenges in becoming first-time home buyers because of high interest rates and high housing costs. But even though it might be difficult to achieve, 37% of Gen Zers told Citizens Bank that they want to buy a house earlier than their parents' generation.

How to make this dream a reality: Do your research upfront to understand how much mortgage you can afford, what goes into a mortgage payment (including homeowners insurance and property taxes). Check your credit score and understand what kind of interest rate you might expect to get for your mortgage. Save for a down payment by using a high-yield savings account or one of the best CDs.

5. Retire earlier (32%)

Gen Zers are often known for being gloomy about their personal finances -- but saving for retirement is one area where Gen Z really should be more optimistic. That's because being young is a retirement savings superpower! If you're 27 years old in 2024, you have 40 years to invest for retirement and let your money grow until you reach Social Security age (67 for Gen Z).

How to make this dream a reality: Start saving for retirement with your first real job. Get the maximum employer match for your 401(k) if you can; or if you don't have a retirement plan at work, use a traditional IRA or Roth IRA. If you have enough money, you can use both a 401(k) and an IRA -- traditional or Roth.

Bottom line

Gen Zers have some special challenges in getting established in careers, paying off debt, and saving for retirement. This generation has been hit hard by the pandemic and high inflation. But there are many reasons for optimism for Gen Z's financial future. Paying off debt faster, saving for retirement, and enjoying a fulfilling career (and life) are all well within reach for Gen Z.