The truth is Gen Zers are facing an economic situation that grows increasingly bleak. With 2 in 3 families in the US lacking emergency funds, and 78% of adults living paycheck to paycheck, it’s clear that this economy is not sympathetic to young people wanting to take control of their finances. Add in spiralling interest rates, rapidly rising rent, and low wage growth, it’s only growing more difficult to live within your means. 

It doesn’t help, either, that the only options offered to Gen Z seem to be foregoing any non-essential indulgences, or spending hours fretting over a complicated budget that, with the shifting costs of food, bills and subscriptions, rapidly becomes outdated. 

So, what can Gen Z actually do? The issue with traditional thinking around personal finances is that it assumes financial literacy is something innate. In reality, it’s a skill like any other. One that can be learnt and improved upon. Budgeting, and achieving financial stability, doesn’t have to be something you tackle alone. 

That’s exactly why I founded the personal budgeting app, Buddy. After moving in with my partner, I found the challenges of running a shared household economy overwhelming. And so, whilst still working my full-time day job as a software engineer, I set out to build an app that would make budgeting easy and intuitive. 

Buddy now has 2.5M users and is the fastest growing budgeting app for Gen Z on the App Store. Which, I’d like to think, is no accident. Those two generations face unique economic challenges and are grappling with the fact that traditional models of how to live, that may have worked for their parents - having just one career or owning a house by thirty - are just not realistic for their generation.

It might sound redundant, but any solution to the issue of personal finance should be personal. There’s no one-size-fits-all approach to budgeting. For some it makes little sense to save for a house when renting somewhere vaguely affordable almost breaks the bank, and for others take-out food is, some nights, the only way to get a square meal in after working long hours. Many people consider themselves too busy to budget, which is why digital, user-friendly tools are pivotal to improving financial literacy and prudence among Gen Z.

Spending money on things that bring moments of joy, be that coffee or a holiday, should not be seen as inherently indulgent or extravagant. If this can be accounted for in a flexible budget, then there's no reason why Gen Z should not be able to save and spend. Despite the issues facing the next generation, financial literacy should hopefully enable them, regardless of their age, education, or background, to put money aside without making unreasonable sacrifices.

The phrase ‘make your money work for you’ might sound hackneyed at this point, but there’s an underlying truth there that’s still pertinent: your finances - unfortunately - won’t sort themselves out. But that doesn’t mean you’re alone. Financial literacy is a skill that can be taught, and, more importantly, learned. A budget that helps you enjoy life, and feel financially secure, is not out of reach. 

Ultimately, it makes no sense to wag the finger at GenZers and millennials, for whom everything is uncertain, and who are currently staring down their third ‘once-in-a-lifetime’ economic crisis. Instead, a meaningful education in financial literacy is a real, tangible way these generations can take their finances into their own hands. And maybe, once in a while, they can grab that avocado toast, too.