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Gen Z and Money

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How Gen Z Is Rewriting the Rules of Money in 2025

Generation Z—born 1997 to 2012—isn’t just remixing TikTok trends; they’re flipping the script on money. By February 2025, these 20-somethings (ages 13-28) face a landscape their Gen X parents and Millennial siblings barely prepped them for: post-COVID economic ripples, AI-driven gig work, and a housing market still flexing at $410,000 median (St. Louis Fed estimate). They’ve seen the Great Recession gut stability and student debt choke dreams—now, they’re dodging those traps with grit, tech, and a sharper eye. Crypto wallets? ESG stocks? Zoomers are all in, blending hard-earned lessons with a future-first hustle. Here’s how they’re reshaping finance—and what anyone can steal from their playbook.

Learning from the Past, Building for Now

Gen Z didn’t just inherit Wi-Fi—they got a crash course in financial survival. Their Gen X parents rode the 2008 storm—secure jobs evaporated, 401(k)s shrank overnight. Millennials? They piled on $1.7 trillion in student debt by 2024 (Fed data), averaging $38,000 per grad, juggling gigs while tech rewrote the rules. Zoomers took notes. Only 21% want student loans (Bank of America 2023), and 35% are entrepreneurial—think Etsy shops, Twitch streams, or app startups by age 25. Take Sarah, a 23-year-old from Austin: she skipped college, learned coding on YouTube, and now pulls $3,000 monthly freelancing. Adaptability’s their superpower—half nature, half necessity.

Tech-Savvy and Green: The Gen Z Money Playbook

Digital natives? More like digital wizards. By 2025, Gen Z’s tethered to FinTech: Venmo splits rent, Robinhood trades Tesla, Coinbase holds their $500 in Bitcoin (17% own crypto, Pew 2024). Budget apps like YNAB track their $50/week groceries; Wealthfront auto-invests $100 monthly. Why? Convenience, low fees—64% research tools online (Bank of America). Security’s non-negotiable—two-factor authentication’s their norm. But it’s deeper: 40% chase ESG investments (Morgan Stanley 2024), funneling cash into solar farms or vegan brands over fossil fuels. Jake, 19, from Seattle, sunk $1,000 into a clean-energy ETF last year—it’s up 12%. Values meet profit here.

The Influence of Social Media on Gen Z’s Money Mindset

Social media’s Zoomers’ money muse—and menace. Finfluencers like @GrahamStephan (1M followers) drop viral budgeting tips—#MoneyTok’s 500k posts shape their cash habits. It’s a goldmine: 60% learn investing via reels (Pew 2024), like “$100 in Bitcoin now, $1k in 5 years.” But FOMO bites—15% overspend on hype like $200 streetwear after Insta flexes (Experian). Comparison’s brutal: a 20-year-old barista skips savings seeing peers’ crypto hauls, yet 25% pivot to frugality after “no-spend” challenges go viral. Misinfo’s the trap—5% fall for “double your money” scams yearly (FTC 2024). They’re sharp, though—cross-checking Reddit or X flags fakes fast. Social’s a double-edged sword: it sparks savviness (80% trust peer reviews over ads, Nielsen) but tempts reckless splurges—navigating it’s their tightrope.

Financial Literacy: A Work in Progress

Zoomers are hungry for money smarts—84% crave financial literacy (Visa 2023)—but lean heavily on parents (same stat), who might miss 2025’s quirks like 11% loan rates (Bankrate) or crypto volatility. Online’s their real turf: TikTok’s #MoneyTok explodes with 500k posts, Reddit’s r/personalfinance hums with 2M users, and YouTube “money hacks” rack up 1M views monthly. They’re scam-savvy—phishing emails bounce off—but real-world gaps linger. Credit’s a blind spot: only 10% carry balances (Experian 2024), dodging debt but stunting scores. A 22-year-old barista skipping a $300 card saves $50 now, but a 620 FICO could nix a mortgage later—credit literacy’s shaky. Investments? Many stick to cash, missing stocks or ETFs—only 25% dabble beyond savings (Pew 2024). Taxes baffle too—just 15% grasp deductions like the $4,150 HSA cap (IRS). They’re learning fast, just not deep yet—application’s the next frontier.

Homeownership Dreams: Big Goals, Bigger Hurdles

Millennials rented into oblivion; Gen Z’s got bigger plans. Rocket Homes’ 2023 survey says 86% of 18-24-year-olds want homes, 45% by 2028—ages 23-29. Mia, 24, a Denver coder, has $8,000 saved, eyeing a $350,000 condo with an FHA loan ($12,250 down). Median U.S. homes hit $410,000 (St. Louis Fed)—double their $223,000 guess. They’re scrappy—75% save, 10% target down payments (Rocket)—but $1,800 monthly at 6% rates stings. Co-buying’s rising: 12% split deeds with friends or family (NAR 2024), pooling $20,000 downs. House hacking’s hot—15% rent rooms or build ADUs, netting $800 monthly to offset costs (Zillow). Alternatives shine too: rent-to-own deals lock prices now, shared equity swaps cash for future equity—5% of Zoomers explore these (Freddie Mac). High prices force ingenuity; they’re bending rules to plant roots.

Taking Money Seriously, Step by Step

Financial duty’s coded into Zoomers. By 2025, 20.3% save for emergencies, 14.3% hoard “just in case,” 11.3% pay debt (Rocket). Early earners—say, a 22-year-old barista at $15/hour—stash $100 monthly, eyeing stability. Contrast Millennials: $1.7 trillion in debt by their 30s vs. Gen Z’s $200 billion (Fed 2024). Take Leo, 26, a graphic designer—he’s saved $12,000 since 2022, half for a house, half for emergencies. It’s not sexy; it’s smart. They’re not chasing Lambos—they want roofs and peace.

Roadblocks: Cash, Credit, and Costs

Homes are the prize, but cash is the fight. Rocket’s survey shows 74% flag finances: 22% lack down payment funds (think $14,000 for 3.5% on $410,000), 18% can’t find homes under $300,000, 16% sweat credit (Gen Z FICO averages 680, Experian). Student debt’s down—7% cite it—but costs soar. In Boise, a starter home’s $380,000; in 2021, it was $300,000. They misjudge too—81% peg homes at $223,000 (Rocket). FHA loans help, but education’s the gap: only 30% know closing costs add 2-5% (NAR 2024).

Gen Z’s Game Plan: Stay Sharp, Move Forward

Proactivity’s their fuel. YouTube’s Money Fit vids (50k views), Reddit AMAs, Udemy’s $15 courses—they’re Gen X’s $500 seminars, rebooted free. Side hustles rule: 31% freelance, sell digital art, or drop online courses—$500 monthly stacks fast (Fed 2024). AI’s their copilot—apps like Acorns auto-invest $50 into ETFs, Qapital rounds up $5 coffees to save $200 yearly. Emergency funds are gospel: 20.3% stash 3-6 months’ expenses (Rocket), eyeing stability over flash. The FIRE movement (Financial Independence, Retire Early) hooks 10%—25-year-olds save 50% of $40k salaries, aiming for $1M by 40 (Vanguard 2024). Our Gen Z and FIRE Podcast with Guac is great listen. Alex, 21, a retail clerk, puts $50 monthly in an S&P ETF since 2024; it’s $150 now, targeting $1,000 by 2027. Goals vary—cars, homes, freedom—but they’re playing chess, not checkers.

A Marathon, Not a Sprint

Wealth’s no overnight TikTok glow-up. Instagram flaunts peers’ NFT flips or startup cash-outs, but 75% of Gen Z would move states for jobs (Bank of America). Comparison’s a trap—your $5,000 savings at 24 beats their $0 at 30 if you keep at it. At 5% interest, that $5,000 hits $8,100 in 5 years, $13,000 in 10. Lily, 23, a nurse’s aide, ignored her rich cousin’s flexing—she’s debt-free with $7,000 saved since 2023. Pace wins; Zoomers know it.

Frequently Asked Questions About Gen Z and Money

How does Gen Z approach financial tech?

They’re hooked—17% own crypto, 64% use budgeting apps (Pew, Bank of America 2024). It’s fast, secure, and their digital norm.

Why is Gen Z obsessed with sustainability?

Over 40% back ESG investments (Morgan Stanley 2024), choosing solar or ethical funds over oil—values drive profit.

Are Zoomers really anti-debt?

Mostly—21% want student loans, 10% carry credit balances (Bank of America, Experian). They’ve seen debt drown Millennials.

Can Gen Z buy homes by 2028?

45% plan to—75% save, 10% aim for down payments (Rocket). With $410,000 medians, FHA loans (3.5% down) are key.

What’s their biggest money challenge?

Finances—22% lack down payment cash, 18% can’t find affordable homes (Rocket). Smarter cost awareness is their fix.

About the Author

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Rick Munster

Rick Munster is a personal finance expert and author with over 23 years of experience in the credit counseling industry. He currently serves on the board of directors for the Financial Counseling Association of America and has published more than 250 articles on personal finance. Over the course of his long-standing career at Money Fit, a nonprofit credit counseling organization, Rick’s insights have been featured by several news outlets on topics such as credit counseling, debt management, and financial education.
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You hereby authorize and instruct Debt Reduction Services, Inc. (DRS, dba Money Fit by DRS) and/or its assigned agents to:
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Entities such as mortgage lenders and/or counseling agencies may contact your DRS counselor to evaluate the options for which you may be eligible. In connection with such evaluation, you authorize the credit reporting and/or financial agencies to release information and cooperate with your DRS counselor. No information will be discussed about you with entities not directly involved in your efforts to improve your housing situation. You hereby authorize the release of your information to program monitoring organizations of DRS, including but not limited to, Federal, State, and nonprofit partners for program review, monitoring, auditing, research, and/or oversight purposes. In addition, you authorize DRS to have your credit report pulled two additional times to conduct program evaluations. You also agree to keep DRS informed of any changes in address, telephone number, job status, marital status, or other conditions which may affect your eligibility for a program you have applied for or a counseling service that you are seeking. Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.

Client Privacy, Data Security, and Client Rights Policy

NOTE: This sheet is to inform new or returning clients about our services, records, fees, and limitations that may affect you as a consumer of our services. This form also discloses how we might release your information to other agencies and/or regulators. If you do not understand a statement, please ask a Debt Reduction Services (DRS) counselor for assistance.

Debt Reduction Services, Inc. (DRS) has put into place policies and procedures to protect the security and confidentiality of your nonpublic personal information. This notice explains our online information practices and how we use and maintain your information to conduct our financial education and credit counseling sessions and to fulfill information and question requests. This privacy policy complies with federal laws and regulations.

To provide our financial education and credit counseling services, we collect nonpublic personal information about you as follows: 1) Information we receive from you, 2) Information about your transactions with us or others, and 3) Information we receive from your creditors or a consumer reporting agency. We do not share this information with outside parties.

We use non-identifying and aggregate information to better design our website and services, but we do not disclose anything that could be used to identify you as an individual.

You hereby authorize DRS, when necessary, to share your nonpublic personal, financial, credit, and any information that you provided (including any computations and assessments produced) with the following entities in order to help DRS provide you with appropriate counseling or guide you to appropriate services: third parties such as government agencies, your lender(s), your creditor(s), and nonprofit housing-related and other financial agencies as permitted by law, including the U.S. Department of Housing and Urban Development.

To prevent unauthorized access, maintain data accuracy, and ensure the correct use of information, we have put in place appropriate physical, electronic, and managerial procedures to safeguard and secure the information we collect online. We limit access to your nonpublic personal information to our employees, contractors and agents who need such access to provide products or services to you or for other legitimate business purposes.

Debt Reduction Services, Inc. complies with the privacy requirements set forth in the HUD housing counseling agency handbook 7610.1 (05/2010), including the sections 2-2 Mc, 3-1 H(2), 3-3, 5-3 F, and Attachment A.5. At all times, we will comply with all additional laws and regulations to which we are subject regarding the collection, use, and disclosure of individually identifiable information.

  1. Services: DRS provides the following housing-related services: counseling that includes Homeless Assistance, Rental Topics, Pre-purchase/Homebuying, and Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase); Education courses that include Financial literacy (including home affordability, budgeting, and understanding use of credit), Predatory lending, loan scam or other fraud prevention, Fair housing, Rental topics, Pre-purchase homebuyer education, Non-delinquency post-purchase workshop (including home maintenance and/or financial management for homeowners), and other workshops not listed above.

Please refer to DebtReductionServices.org for details of our services.

  1. Limits: Our services are limited to our normal weekday business hours. We do not provide individual counseling or education services after hours or on weekends, although our education courses are available 24/7.
  2. Fees: We do not charge fees for our financial management counseling and education. However, if you use them, you may have to pay for our Debt Management Program, Student Loan Counseling, Bankruptcy Certificate Services or certain financial education courses (homebuyer education, rental topics, fair housing, predatory lending, and post-purchase-non-delinquency including home maintenance and/or financial management for homeowners).
  3. Records: We maintain records of the services you receive, including notes about your progress or other relevant information to your work with us. You have the right to access and view your records by making a request to your counselor.
  4. Confidentiality: We respect your privacy and offer our services in confidence with the understanding that we may share such information with auditors and government regulators. Certain laws or situations may also lead to disclosing confidential issues, such as those involving potential child abuse or neglect, threats to harm self or others, or court subpoenas.
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  6. Disclosure of Policies and Practices: You will be provided our agency disclosure statement.
  7. Sharing of Information: Sometimes we will need to contact other agencies or we may need to share your information, including your records, with other agencies or with regulators. We will do this only if you sign this form that gives us permission except for limited reasons; please see # 5 above for examples of such situations.
  8. Other: You have the right to be treated with respect by our staff, and we expect the same from you in return. We encourage you to always ask questions if something is not clear. We also encouraged you to express your thoughts and advocate throughout our services.

You acknowledge that this authorization will remain in effect for the duration of time that DRS serves as your housing counselor or financial education provider. You also acknowledge that should you wish to terminate this authorization, you will notify DRS in writing.

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NOTE: If you have an impairment, disability, language barrier, or otherwise require an alternative means of completing this form or accessing information about our counseling services, please communicate with your DRS representative about arranging alternative accommodations.

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Disclosure to Client for HUD Housing Counseling Services

Debt Reduction Services, Inc. and its financial education arm, Money Fit by DRS, offer the following housing counseling and educational services related to housing, personal finance, and bankruptcy certificates to consumers:
  • Housing Education Courses: DRS offers many online self-guided education programs classified as Financial, Budgeting, and Credit Workshops (FBC), Fair Housing Pre-Purchase Education Workshops (FHW), Homelessness Prevention Workshops (HMW), Non-Delinquency Post Purchase Workshops (NDW), Predatory Lending Education Workshops (PLW), Pre-purchase Homebuyer Education Workshops (PPW), and Rental Housing Workshops (RHW). These courses help participants increase their knowledge of and skills in personal finance, including home affordability, budgeting, and understanding the use of credit, as well as predatory lending, loan scams, and other fraud prevention topics, fair housing, rental topics, pre-purchase homebuyer education, non-delinquency post-purchase topics including home maintenance and/or financial management for homeowners, homeless prevention workshop, and other workshops not listed above relating to personal finance and housing. Course details are found below under “Housing Workshops.”
  • Home Equity Conversation Mortgage (HECM) Counseling (RMC): Via telephone and virtual platforms, we offer the required HECM counseling nationwide in addition to in-person counseling in Boise, Idaho. We also offer in-home counseling options in thirty counties across southern Idaho for an additional fee to cover our travel and additional staff time costs.
  • Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase) (FBC): Clients receive counseling and materials on the proper maintenance of their home and mortgage refinancing. Clients can find help and resources by phone, in our Boise office, or virtually on all topics related to stabilizing their long-term homeownership.
  • Services for Homeless Counseling (HMC): Clients receive phone, virtual, or in-person (Boise) counseling to evaluate their current housing needs, identify barriers to and goals for housing stability, establish a path to self-sufficiency, and connect with emergency shelters, income-appropriate housing, and/or other community resources (e.g. mental healthcare, job training, transportation, etc.).
  • Pre-Purchase Counseling (PPC): Clients receive counseling through the entire homebuying process. Assistance may involve creating a sustainable household budget, understanding mortgage options, building their credit rating, and putting together a realistic action plan to set and achieve homeownership goals.  Additionally, clients will receive materials and resources about home inspections and other homeownership topics relevant to successfully maintaining a home.
  • Rental Housing Counseling (RHC): Via phone, in-person appointments (Boise, ID), or virtual platforms, clients receive housing counseling relevant to renting, including rent subsidies from HUD or other government and assistance programs. Topics can also address issues and concerns having to do with fair housing, landlord and tenant laws, lease terms, rent delinquency, household budgeting, and finding alternate housing.
DRS also offers the following services:
  • A Debt Management Program (DMP) for consumers struggling to pay their credit cards, collections, medical debts, personal loans, old utility bills, and past-due cell phone accounts;
  • The Budget Briefing and Debtor Education Certificates that are required during the Bankruptcy filing process;
  • A Student Loan Repayment Plan Counseling and application service.

Relationships with Industry Partners

Through such services, DRS has established financial relationships with hundreds of banks, credit unions, and creditors such as American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Credit One, Discover, Synchrony, US Bank, USAA, Wells Fargo, and others.

No Client Obligation

The client is not obligated to receive, purchase or utilize any other services offered by DRS or its exclusive partners to receive financial education or housing counseling services. Alternatives: As a condition of our counseling services, in alignment with meeting our client services goals, and in compliance with HUD’s Housing Counseling Program requirements, we may provide information on alternative services, programs, and products available to you, if applicable and known by our staff. Alternative DMP services include negotiating better repayment terms directly with your individual creditors, paying your debts as agreed, or, in extreme cases, filing for personal bankruptcy. Alternative credit and education services can be found through MyMoney.gov or the Jump$tart Clearinghouse of online financial education resources. Housing counseling alternatives can be found through HUD at www.hud.gov/findacounselor.
Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.
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Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

Rental, Fair Housing, Predatory Lending / HOEPA, Post-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. credit, budgeting, homeless prevention, debt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).

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Housing Counseling and Education Fee Schedule  

Online EDUCATION Program Fees* 

eHome Homebuyer Education Course: $99 per household** 

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours) 

Online Workshops: $49 per participant 

  • Rental, Fair Housing, Predatory Lending Post-Purchase, HECM Family Member  
  • Approximately 1 hour each 

Other Self-Guided Financial Literacy Webinars: $0 

  • Credit, budgeting, homelessness prevention, debt prevention 
  • Approximately 30-60 minutes each 

One-on-one COUNSELING Fees* 

Pre-purchase Home Buying, Renter Issues, Homelessness, and Fair Housing: $0  

Post-purchase Ownership and Maintenance, HOEPA or Financial Management $75/hr  

Reverse Mortgage/HECM Counseling with Required Certificate $200 per household†  

Credit Report Fee Paid Directly by Client 

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable 

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page 

**Household is an individual or a couple  
†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there)