A decade ago, as a young journalist in my 20s, I wrote an article titled Young, Rootless, and Broke, warning that the widening wealth gap between generations was putting millennials’ financial futures at risk. Back then, the pillars of financial security—education, employment, housing, and pensions—were already crumbling, delaying adulthood and financial independence for an entire generation.
Now, more than ten years later, a new generation—Gen Z—is facing even greater financial challenges. With rising costs of living, stagnating wages, and an uncertain job market, the financial realities for young people in 2025 appear even more daunting than they did for millennials a decade ago. This raises an important question: Have the economic conditions deteriorated so much that Gen Z is giving up on financial independence before even getting started?
The Shifting Financial Landscape: Millennials vs. Gen Z
In 2014, millennials were struggling with skyrocketing rents and an increasingly expensive housing market. However, looking back now, those prices seem like a bargain compared to today’s market. The average monthly rent in England has surged from £600 to £1,350, while house prices have jumped 69% from £176,000 to £299,000. Meanwhile, wages have barely kept pace, making homeownership and financial stability even harder to achieve for Gen Z.
Despite these challenges, over a third of millennials have managed to climb onto the property ladder—albeit later in life and with substantial financial assistance from parents. However, even for those who have managed to buy a home, higher mortgage rates and living costs continue to eat away at their financial security.
For Gen Z, financial hurdles are even steeper. The cost of living crisis has pushed everyday expenses to record highs, making it difficult for even well-paid young professionals to save money. Student loan debt continues to weigh heavily on their shoulders, with tuition fees and interest rates significantly higher than they were for millennials. As a result, many young people today feel they are living paycheck to paycheck, despite working full-time jobs.
Financial Anxiety and Mental Health
Recent reports suggest that 40% of Gen Z workers are considering quitting their jobs due to mental health concerns. This has sparked debates over whether financial stress and the pressures of modern work culture are driving young people toward burnout.
While some argue that Gen Z lacks the resilience of previous generations, it’s crucial to recognize how their economic realities differ. Unlike their parents or even millennials, Gen Z has grown up in an era dominated by social media, where curated images of success create unrealistic financial expectations. Constant exposure to influencers showcasing luxury lifestyles has made traditional career paths seem uninspiring and financially unfulfilling.
Will Gen Z Overcome These Challenges?
Older generations have often criticized younger workers for being unwilling to “tough it out” in challenging economic times. However, many forget that baby boomers benefited from economic booms, stable pensions, and affordable housing. Millennials, despite their struggles, have at least had opportunities to build careers and assets, even if at a slower pace than previous generations.
For Gen Z, the financial obstacles are steeper, and the economic environment less forgiving. If wages continue to stagnate while the cost of living rises, achieving financial independence will be increasingly difficult. While hard work remains essential, the broader economic system must also adapt to provide younger generations with real opportunities for financial security.
As we look ahead, the divide between millennials and Gen Z finances may continue to widen. If meaningful economic reforms aren’t implemented, another decade from now, we may be writing about an even more dire financial situation for the next generation.
