Gen Z is navigating a paycheck-to-paycheck lifestyle, juggling sky-high rent while surviving on budget meals like 99-cent ramen. But in just a decade, they’re set to become the world’s most powerful economic force.
In 2022, Gen Z’s total income stood at $9 trillion, but projections indicate it will quadruple to $36 trillion by 2030 and skyrocket to $74 trillion by 2040. According to a recent Bank of America report, this shift will make them the wealthiest and largest generation by 2035, as they grow to 30% of the global population.
For now, however, that financial dominance feels far off. Many Gen Zers are struggling to find stable jobs, afford homes, or even start families. But with career advancements and massive inheritance transfers ahead, their economic trajectory is poised for a major shift.
Leaving college and stepping into a challenging job market, many Gen Zers can’t even afford commuting costs to potential job opportunities. Instead of starting families, they’re spoiling their pets, and homeownership feels like a far-fetched dream—unless an inheritance comes through.
Unemployment is another challenge. According to the Bank of America report, the number of young households receiving unemployment benefits jumped 32% year over year in February. Despite stereotypes of Gen Z being lazy, the report describes them as "overeducated and underemployed." With white-collar job opportunities shrinking, unemployment for new workers rose over 9% year over year, forcing many to take jobs they’re overqualified for, potentially stalling long-term career growth.
Yet in just 10 years, their fortunes could completely change. Gen Z’s wages grew 8% year over year in February, a sign they’re finally entering full-time positions with better salaries. But the biggest game-changer for their finances? The Great Wealth Transfer coming their way.
Despite economic hardships, Gen Z is expected to inherit massive wealth over the coming decades.
A 2021 report from Cerulli Associates estimates that $84 trillion will pass from seniors and baby boomers to Gen X, millennials, and Gen Z by 2045. While Gen X and millennials will receive the bulk of this wealth, 38% of Gen Z still expects to inherit money.
Combined with strong wage growth, this generational wealth transfer will catapult Gen Z into economic dominance.
Even now, their spending power is expanding rapidly. In 2024, Gen Z’s global spending is projected to hit $2.7 trillion—but by 2030, that number is expected to surge to $12.6 trillion. Their spending per household has also outpaced the overall population, covering both necessities and discretionary purchases.
Gen Z’s high spending habits are fueled by several factors:
Despite today’s struggles, businesses should take note—because when Gen Z finally gains financial control, they will shape the economy.
Companies are already tailoring their strategies to align with Gen Z’s preferences, which center around:
As their wealth grows, Gen Z’s values and habits will dictate which industries thrive.
According to the Bank of America report, Gen Z could be one of the most disruptive generations in modern history, redefining everything from consumer spending and housing markets to diets and alcohol consumption.
By 2035, Gen Z won’t just be participating in the economy—they’ll be running it.
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