What worked for millennials doesn’t always make sense to Gen Z.
Money habits change with each generation, and Gen Z is proving that they aren’t following in the financial footsteps of millennials. The world they’re inheriting looks different—higher living costs, a more digital economy, and a workforce that values flexibility over stability. That means some of the financial advice that worked for millennials feels outdated, impractical, or even downright irrelevant to Gen Z.
Instead of clinging to traditional money habits, Gen Z is reshaping how they earn, spend, and save. They’re prioritizing financial independence in new ways, avoiding some of the struggles millennials faced, and finding their own path to security. While millennials hustled to climb corporate ladders, buy homes, and save for retirement, Gen Z is questioning whether those moves even make sense anymore. Here are the money habits they think their millennial predecessors should have left behind.
1. Buying a house is no longer the ultimate financial goal.
Millennials were told that homeownership was the key to building wealth, but Gen Z isn’t convinced, as stated by Sarah Lentz at Bam. With skyrocketing home prices, rising mortgage rates, and stagnant wages, buying a house feels less like an achievement and more like an impossible burden. Many young adults simply don’t see the point in spending years saving for a down payment only to be saddled with debt and maintenance costs.
Instead, they’re prioritizing financial freedom. Renting allows for flexibility, fewer responsibilities, and the ability to move when better opportunities arise. While older generations may argue that renting is “throwing money away,” Gen Z sees it as a way to avoid being tied down by a 30-year mortgage in an unpredictable economy.
2. Side hustles aren’t the answer to financial security.
Millennials were all about the hustle—working multiple jobs, monetizing hobbies, and finding ways to maximize every waking hour. But Gen Z sees the dark side of this mentality. Constantly grinding for extra income leads to burnout, and for many, it’s not actually a sustainable way to build long-term wealth, according to the writers at Gone Traveling.
Instead of chasing endless side gigs, Gen Z is focused on smarter ways to increase financial security. They’re looking for remote work, investing in passive income streams, and setting better work-life boundaries. While making extra money is always helpful, they’re not willing to sacrifice their mental health just to keep up with hustle culture.
3. Saving every spare dollar isn’t enough to get ahead.
Millennials grew up with the belief that if they skipped lattes and ate at home, they could eventually build wealth. But Gen Z knows that no amount of penny-pinching can keep up with rising costs. Saving is important, but it’s not a complete financial strategy.
Instead of obsessing over small daily expenses, Gen Z is prioritizing ways to actually grow their money. They’re focusing on investments, learning about high-yield savings accounts, and finding ways to increase their income rather than just cutting back, as reported by Karen Bennett at Bankrate. The goal isn’t just to save—it’s to build wealth in a way that keeps up with inflation and economic changes.
4. Working a traditional 9-to-5 job isn’t the only career path.
Millennials were raised with the idea that getting a stable corporate job was the best way to succeed. But Gen Z has seen firsthand that traditional jobs don’t always offer the security they promise. Layoffs, burnout, and stagnant wages have made them rethink the idea of tying their entire financial future to a single employer.
Instead, they’re exploring multiple income streams, freelancing, and remote work opportunities that allow them to live life on their own terms. They value flexibility over loyalty to a company, and they’re not afraid to leave a job if it no longer serves them.
5. Investing is no longer just for the wealthy.
Millennials were hesitant to invest early on, largely due to fear and lack of education around the stock market. Many of them only started seriously investing in their 30s, after focusing on paying off debt. But Gen Z is jumping in earlier, thanks to apps and platforms that make investing more accessible.
With fractional shares, cryptocurrency, and easy-to-use investment apps, younger generations are learning how to grow their money much sooner. They’re not waiting until they have thousands saved up—they’re making small, consistent investments and using financial education tools to build long-term wealth.
6. College degrees don’t guarantee financial success.
For millennials, going to college was a non-negotiable path to a stable career. But Gen Z has seen too many people drowning in student debt with degrees that don’t translate to high-paying jobs. They’re questioning whether the traditional college route is worth the cost, especially with more career opportunities opening up outside of formal education.
Instead, they’re exploring trade schools, online certifications, and alternative learning paths that don’t require taking on massive debt. The goal isn’t just to get a degree—it’s to gain skills that actually lead to financial stability.
7. Credit card rewards aren’t worth the potential debt.
Millennials have mastered the art of playing the credit card game—racking up points, maximizing cashback, and using sign-up bonuses to their advantage. But Gen Z is far more cautious when it comes to credit. They’ve seen how debt can spiral out of control, and many are avoiding credit cards altogether.
Instead, they prefer using debit cards, buy-now-pay-later options, or budgeting apps to keep their spending in check. While they understand the benefits of credit-building, they’re prioritizing financial safety over chasing rewards.
8. Retirement savings aren’t the only priority.
Millennials were taught to max out their 401(k)s and save aggressively for retirement. While that advice isn’t necessarily bad, Gen Z is balancing long-term savings with the need to enjoy life now.
They’ve seen older generations work tirelessly only to reach retirement age without ever having truly lived. Instead of sacrificing everything for a future they can’t predict, they’re prioritizing financial stability while still allowing room for travel, experiences, and personal fulfillment.
9. Owning a car is more hassle than it’s worth.
Millennials saw car ownership as a necessity, even if it meant taking on car loans and maintenance costs. But with rising gas prices, insurance premiums, and urban living trends, Gen Z is far less interested in owning a vehicle.
Many are opting for public transportation, rideshare services, or even electric bikes instead of committing to a depreciating asset. For them, the freedom of not being tied to car payments and maintenance costs outweighs the convenience of having their own vehicle.
10. Paying off debt aggressively isn’t always the smartest move.
Millennials have spent years obsessed with becoming debt-free as quickly as possible. While avoiding debt is always a good goal, Gen Z is taking a more strategic approach. Instead of dumping all their money into paying off low-interest student loans, they’re investing and saving at the same time.
They understand that not all debt is created equal, and sometimes it makes more sense to let certain balances sit while focusing on growing wealth in other areas. It’s about financial balance, not just eliminating every dollar of debt as fast as possible.