Cracking the Code to Financial Independence: Gen Z and Millennials Unite!

In our previous episode, we delved into the 2023 Deloitte Gen Z and Millennial Survey Report, which unveiled these generations' expectations from businesses. Today, we're shifting our focus to explore their financial concerns, as revealed by the same report.

Interestingly, both Gen Z and Millennials share a common concern: the escalating cost of living. However, their priorities begin to diverge here. Gen Z is particularly worried about unemployment, climate change, the mental health of their generation, and personal safety issues. On the other hand, Millennials emphasize climate change, unemployment, healthcare and disease prevention, and personal safety.

A remarkable revelation is that Gen Z displays a relatively more optimistic outlook regarding their financial futures compared to their Millennial counterparts. Paradoxically, over half of both Gen Z and Millennials find themselves living paycheck to paycheck, marking an increase since the 2022 study. This surge can be attributed to the record-breaking inflation rates observed over the past four decades. Additionally, the growth of part-time employment stems from businesses adapting to higher wage and benefit costs, leading to a rise in part-time workforce. It's important to note that this trend isn't necessarily a sign of disengagement; rather, people are searching for better-paying opportunities.

In this context, Employee Engagement emerges as a significant factor. Finding a middle ground concerning wages, benefits, and job satisfaction could potentially extend the tenure of Gen Z and Millennials within organizations. The demand for higher wages, driven by the surge in inflation, prompts these generations to seek supplemental income streams. Leveraging social media platforms, they engage in online commerce, offering products and services or participating in activities such as food delivery and ride-sharing. Many become Uber, Lyft, or Uber Eats drivers, illustrating diverse motivations ranging from monetary gains to the monetization of hobbies. Notably, 46% of Gen Z and 37% of Millennials have embraced additional part-time or full-time jobs alongside their primary employment, indicating a 3% rise for Gen Z and a 4% increase for Millennials since the previous year.

In a larger context, as the largest generation in the workforce approaches retirement, they're also grappling with the caregiving responsibilities that come with aging relatives. A heartening trend emerges – this generation is choosing to personally care for their elderly family members, reflecting their values and compassion.

Amidst the backdrop of rising inflation, the burden of caregiving, and the pursuit of supplementary income, Gen Z and Millennials are adapting their lifestyles. This adaptation includes an increase in second-hand clothing stores, a shift towards public transportation to save on gas and car expenses, and alterations in dietary habits. Given the financial uncertainties they face, these generations find planning for their futures an arduous task.

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