Surveys show: Zoomers and millennials have a harder time “growing up”

Zoomers and millennials have a harder time achieving career success and making long-term plans like buying a home than their parents. A new study, based on a survey conducted by Generation Lab in collaboration with CNBC, claims that Generations Y and Z are worse at achieving the same goals than Boomers when they first entered the workforce. Let’s find out what’s behind this trend.

A Youth & Money survey published by CNBC found that Generation Z (people born roughly between 1997 and 2012) and millennials are struggling to achieve the goals their parents set for themselves when they first entered the workforce. The study involved just over a thousand people aged 18 to 34 years. When answering the questions, half of them believed that it is now “much more difficult” to buy a house and get a promotion at work. 44 percent said finding a job was the hardest thing to do.

“This is just a snapshot of how young people perceive their lives compared to their parents,” Cyrus Beschloss, founder of Generation Lab, commented on the survey results.

At the same time, the study showed that Zoomers and Millennials can more easily find ways to earn money outside the employment market. The nature of work has begun to change during the Covid-19 pandemic, according to finance manager Blair Du Quesnay.

“Baby boomers came to work for corporations and in many cases stayed in one job for their entire careers and retired with benefits that no longer exist,” Du Quesnay noted generational differences.

It is noted that new economic ways of making money may not lead to the stability that boomers had, and will not allow young people to buy a home. But some “glimmers of optimism despite pessimism about the nation and the world” stand out.

The young people surveyed also believe that inflation will negatively affect their financial well-being. But according to the survey, Generations Z and Y may have this view because of the U.S. economic landscape.

Bone Fide Wealth President and Founder Douglas A. Bonaparte told CNBC: “The word ‘inflation’ has been in the media a lot over the last year or so. We’re bombarded with headlines about it, but we also have eyes—we see inflation in grocery stores.”

Cyrus Beschloss noted that data shows there is hope for a positive future for Zoomers and Millennials. For example, student loan debt is not causing 65% of Gen Z and Y to delay important life steps such as getting married, starting a family or buying a home, the report found. Although it was previously reported that according to another survey, about 75% of Gen Z couples and Y couples say that in the current economy it is too expensive to get married. At the same time, they admit that the wedding will cost money – on average, it is 30 thousand dollars due to inflation.

Contrary to popular belief, most young workers feel comfortable and loyal to their employers. The founder of Generation Lab said that many people have the impression that Generation Z workers cynically come to work in order to have a good quality of life. But employers are trying to do everything to improve employee morale.”

One difference between generations is that Z and Y believe that the stock market is a good place for stable earnings and investments. However, because they saw wealth and financial stability “shaken by some kind of macroeconomic earthquake,” Beschloss said, 37 percent of those surveyed say the opposite.

The problem of the financial market and the younger generation is also noted by experts who do not consider the decision of zoomers and millennials to enter investment trading to be good. This can only boost an already volatile stock.

“Generation Z and, to some extent, millennials have never seen a period of high interest rates or a period of high inflation,” Ted Jenkin, CEO of oXYGen Financial, commented on the stock market situation.

According to consumer financial services company Bankrate, 87 percent of Gen Z investors responded more quickly to higher interest rates and inflation by buying or selling stocks, or holding onto additional investments. At the same time, it is noted that the younger generation does not trust the stock market. This is attributed to their upbringing and insecurity. “Surviving the financial crisis in 2008 as a child probably shaped the experience. Their memories of parents who lost their home or job are fresh,” emphasizes financial manager Blair de Kese.

Stock trading based on emotion, like Gen Z and millennials, rather than logic, usually leads to poor financial decisions, experts say. “If young investors are trading, it’s almost guaranteed to be underperforming,” said Bankrate analyst James Royal.

Additionally, the emergence and rise in popularity and value of cryptocurrencies reflects a “rejection of traditional financial systems.” It will take time for young investors to see compound returns in the traditional stock market.