Generation Z ranges in age from approximately 14 to 29 years old today in 2026.
Generational groups and their differences can be a great lens for understanding everything from finances to workplace culture. This is no different with Generation Z.
There are stereotypes and beliefs that may fuel misunderstandings among those called “Baby Boomers,” “Generation X,” “Millennials,” and “Generation Z.”
If you’re here looking for a quick answer about the Generation Z age group, here it is: From 14 to 29 years.
However, the lower end of this generation is subject to change (it took years before the millennial age range was “finished”). People are already calling the next generation Gen Alpha. This is based on data from Pew Research Center.
Let’s dive into what this means and why you should care.
Why is there a need to understand generational differences?
You may be curious to know where you stand within your specific generation, do you agree on work and financial sentiments? Are you ahead or behind the curve? It makes sense to understand how your specific group lives – what kind of income do they earn and how much student loans do they owe?
From a business perspective, knowing specific generational behaviors and how they use social media or technology, for example, can be highly relevant to a product or service. Also, companies that are in dire need of qualified employees may want to understand the aspirations and fears faced by a particular generation.
Take a look, as we delve deeper into each generation and get a better idea of whether the numbers support the stereotypes.
Fast facts about generations
Below are the typical income and debts faced by the average Millennial and Generation Z.
*Based on student loan by age group statistics.
As of now, millennials are among the highest paid in the United States, and are the most educated. Generation Z is just starting to join the workforce, but so far has had a lower student debt burden than Millennials.
Of course, these numbers can change. In particular, we may see more members of Generation Z going back to school and taking on debt to complete their formal education. Graduate debt continues to increase every year, so Generation Z may see an increase in their student loan balances if they return to school in large numbers.
Similarities between Millennials and Gen Z
Millennials and Generation Z share two important characteristics that may shape workplaces and the economy as a whole.
Off to a slow economic start
A large percentage of Millennials have seen their professional growth hindered due to:
- Bursting of the dot-com bubble (2000-2002)
- Housing crash (2006-2007)
- Relatively slow economic recovery
Due to student loans and a sluggish economy, Millennials have delayed major milestones (marriage, first child, buying a home) compared to previous generations.
The millennial age group and what that means in financial terms
Are millennials shaping or destroying our economy? We dig deeper Millennial age ranges And examine their spending habits, student loan debt, and more.
Generation Z may face similar slow conditions as they enter the workforce. After a decade of economic growth, the first Gen Z college graduates entered the workforce just months before the world shut down due to the coronavirus.
present Recession conditions It may also hinder Generation Z’s growth as they enter the workforce.
Earning extra income outside of the day job may be essential for many members of Generation Z.
Digital natives
Millennials grew up during the first explosion of the Internet and were early adopters of social media platforms. Generation Z grew up with internet technology around them, including streaming platforms and other forms of on-demand entertainment.
The first digital forms of communication (IM, Zoom, Text, etc.) have already infiltrated American workplaces. Generation Z will certainly influence future communication patterns, though they may revolt against perpetual culture and help organize the constant flow of information.
Appetite for activity
Seventy percent Generation Z wants the government to do more to solve societal problems. Additionally, 64% of millennials want the same. Despite their age, Generation Z has been praised for their activism on human rights and climate change and a general willingness to turn to activism.
Differences between Millennials and Gen Z
While Millennials and Generation Z share some similarities, the two groups may differ on some important points.
Attitudes towards education
At this point, Millennials have more formal education than any other generation. As of 2020, 39% have college degrees. In contrast, Generation Z may be more cautious about the costs and benefits associated with a four-year degree.
Pandemic lockdowns have led to a dramatic decline in college enrollment rates among Generation Z by almost all One million fewer students Enrollment in post-secondary education between 2019 and 2021.
It remains to be determined whether Generation Z will continue or reverse this trend as coronavirus restrictions continue to ease. If Generation Z reverses the trend toward increased formal education, the generation may avoid the burdensome debt that plagues many Millennials.
Millennials may receive a large inheritance
Between 2021 and 2045, Millennials are likely to be the biggest beneficiaries of the “Great Wealth Transfer.”
Boomers currently have more than $70 trillion in assets likely to be passed down to millennial children. However, this wealth is largely concentrated among the wealthy and may not have widespread implications for the typical millennial.
Workforce formation
Millennials are currently the largest contributors to the workplace in the United States (About 35% of the total as of 2018), and will remain the largest share of workers over the next few decades. Workplace culture will likely lean more toward Millennial preferences until Generation Z joins the workforce in greater numbers.
Financial Stereotypes of Generation Z: Are They True?
This group, with only a small portion currently reaching full adulthood, entered these years as we grappled with a global pandemic. Until now, the generation has not had much time to develop positive or negative stereotypes.
But these are some examples that may shape our future economy.
Generation Z sees no value in a college education
Before COVID-19, Generation Z was on track to be the best-educated generation in history. more than 57% of college-eligible individuals were in school in 2018 (compared to 52% of millennials of similar ages). But nationally, college enrollment took a big hit when COVID-19 led to nationwide restrictions.
Between 2019 and 2021, college enrollment fell by nearly 7%, with more than 1 million students dropping out. Despite the low enrollment rate, it remains to be seen whether this is just a simple mistake, or whether future members of Generation Z Giving up education for four years.
Generation Z will never come to the office
Working from home was a feature that previous generations often sought, but with the coronavirus changing the way we work, some Gen Z will likely be working in a hybrid or fully remote mode.
Will Generation Z come to the office? They may expect flexibility in the workplace, but those in the high school age group don’t see it as a very important factor right now. In a pollOnly 23% rated the ability to work remotely as a very important part of their future job. Perhaps a follow-up survey, after they enter the labor market, will radically change these numbers!
Generation Z has a short attention span
Generation Z grew up with WiFi-enabled cell phones and social media. They are the first generation to have experienced, from childhood, the “always on” phenomenon associated with constant online connectivity.
Various forms of clinical research have concluded that for some activities, Generation Z He has an attention span of 8 seconds. Millennials have a 12-second window.
The upside is that Generation Z may also have developed more skills for filtering out unnecessary information. It remains to be seen how all of this will play out, whether it will be a benefit or a hindrance in the workplace.
The final word
As Generation Z enters adulthood, their actions and choices will continue to be influenced by economic forces beyond their control. It remains to be seen whether this group avoids formal education and the student debt that accompanies it.
Despite the hoopla and stereotypes of Millennials and Generation Z, the two groups share some similar characteristics that will likely shape the economy as a whole.
