How Gen Z Is Saving More, Investing Smarter, and Skipping the Old Money Playbook

Last updated 08/27/2025 by

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Summary:

Gen Z is breaking financial stereotypes. From record-breaking stock market participation to consistent saving habits, young adults are choosing smarter paths to wealth—even as they face hurdles like housing affordability and knowledge gaps around investing. With a growing appetite for financial growth, Gen Z is poised for success—but will need the right tools, education, and support to fully capitalize on their momentum.

Gen Z is making bold money moves

Gen Z isn’t waiting for wealth to trickle down—they’re creating it on their own terms. In 2025, we’re seeing a generation that’s building financial muscle early by investing in the stock market, saving aggressively, and turning away from outdated norms around money.

But while headlines cheer their progress, the full picture is more complex. Gen Z is doing more with less—and making smart choices in the face of rising housing costs and economic uncertainty. The wins are real. So are the roadblocks. Here’s a breakdown of what’s working, what’s not, and how Gen Z can keep up the momentum.

They’re investing early—and in record numbers

According to new JPMorgan Chase Institute data, Gen Z investors—especially those earning below the median income—are entering the stock market at historic rates. In fact, low-income Gen Z adults are now five times more likely to invest than they were a decade ago.

This is a huge shift. Traditionally, lower-income households stayed out of the market, often due to lack of access, knowledge, or fear of volatility. Now, thanks to fintech apps, social investing platforms, and a cultural shift toward financial literacy, Gen Z is rewriting the rules.

And as housing affordability dwindles, this generation is rethinking the old “buy a house first” playbook. In many cases, Gen Z sees market investing as a more realistic way to build wealth than entering overpriced real estate markets with sky-high down payments.

They’re saving—but looking for better tools

Santander’s 2025 survey shows Gen Z is leading all generations in boosting their savings. More than half increased their savings this year—despite inflation, student loans, and relatively low incomes.

That’s impressive.

Even more telling: 69% say they’ve made sacrifices to save—cutting back on dining, travel, and subscriptions to build their financial cushion. That’s not just smart—it’s a signal of long-term thinking.

However, not all savings strategies are created equal. While 74% of Gen Zers are interested in opening a CD (certificate of deposit), only 8% have actually done it. And for good reason: CDs come with limited returns, fixed terms, and inflexible access—making them less attractive than high-yield savings accounts or brokerage accounts with growth potential.

You can’t improve what you don’t measure

One of the smartest things any Gen Z earner can do right now? Start tracking their net worth.

Knowing what you earn, owe, and own gives you control—and clarity. Without it, it’s easy to overspend, forget debts, or assume you’re doing better than you really are.

Tracking your net worth is like checking your financial pulse. It shows if you’re trending in the right direction or stalling out. And with tools like the SuperMoney app, you can take the guesswork out of managing your finances.

SuperMoney’s free app helps users:

Create a personalized budget
Track spending across all accounts
Monitor debts and savings progress
Get insights into how to reach key goals faster

If you’re building wealth but not measuring it, you’re leaving success to chance. Whether you’re investing, saving, or both—visibility is the first step to improvement.

Challenges still holding Gen Z back

Despite the wins, Gen Z faces serious financial headwinds:

Housing affordability remains a mountain

Even as Gen Z’s share of mortgage applications rises (from 10% in 2023 to 13% in 2024), actual homeownership remains tough. In many cities, it’s almost impossible without outside help. In Portland, for instance, buyers need to earn more than $150,000 to afford the median home.

Limited access to financial education

Most Gen Zers didn’t learn about investing, saving, or credit in school. Many still aren’t confident navigating complex financial products, leaving them vulnerable to low-yield solutions or risky get-rich-quick schemes. Without access to transparent, practical financial education, some may stall their progress despite good intentions.

Pay stagnation and economic instability

Even with side hustles and digital income streams, Gen Z is struggling with flat wages and rising costs. Saving and investing with a low income takes discipline, but without wage growth, there’s only so far they can go.

How Gen Z can build on their wins

Gen Z’s financial foundation is solid—but the next steps will determine long-term success. Here’s how they can build on their momentum:

Keep investing, but diversify: Stick to consistent, low-cost investing in index funds and avoid hype-driven assets.
Level up your financial education: Learn the pros and cons of tools like CDs, Roth IRAs, and taxable brokerage accounts. Free online resources and personal finance podcasts can help.
Focus on liquidity and growth: Favor accounts that offer high APYs with flexibility, especially if you may need the cash soon.
Track your net worth consistently: Use a budgeting tool like SuperMoney’s app to stay on top of your income, expenses, debts, and investments—all in one place.
Redefine wealth on your terms: You don’t need to buy a home at 25. Financial security can come from saving, investing, and building income streams over time.

Key takeaways

Gen Z is saving more and investing earlier than previous generations.
Many are rethinking homeownership and choosing market-based wealth strategies.
CDs are gaining attention, but better options exist for growth and flexibility.
Challenges like poor financial education and housing costs still persist.
Tracking net worth with tools like SuperMoney is essential to financial growth.

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