Summary of this article
Rising costs push Gen Z towards credit and risk
Traditional jobs feel insufficient for long-term financial security
Trust in institutions weakens under sustained economic pressure
A growing share of Gen Z is taking on financial risk as traditional routes to stability feel increasingly unreliable, according to the Gen Z-eitgeist 2026 report, a new global study by Edelman Gen Z Lab. The report tracks how prolonged economic pressure is reshaping money habits, career expectations and relationships with technology and institutions.
Financial Pressure Drives Riskier Money Decisions
Approximately 40 per cent of Gen Z in US spend their time on buy now pay later (BNPL) services one or more times a week. Of them, approximately 25 per cent indicate that they have missed at least one payment, and 31 per cent have no idea what they owe. Short-term credits are no longer restricted to big purchases; they are commonly used for day-to-day purchases.
Rising rent and slow increases in wages have undermined the belief in consistent improvement. Many young adults no longer believe that following established financial steps will lead to outcomes such as home ownership or long-term security. As a result, riskier financial decisions are becoming common.
The report focuses on the fast popularity of online betting, day trading and crypto assets. They are usually not seen as long-term investments, but as ways of creating momentum once the progress seems stalled.
This mindset is reinforced by attitudes towards work. About 60 per cent of Gen Z respondents say a standard nine-to-five job will not deliver financial independence. That belief weakens the connection formed between work and security that guided the previous generations.
Re-evaluating Work and Income Stability
Gen Z still values work, but their expectations have been reduced. Less than 10 per cent indicate that they are interested in leadership positions as their ultimate career goal. Instead, the focus is on having enough money and greater control over time.
Lengthy working hours and titles are no longer perceived as protection from financial shock. The report notes rising interest in slower career paths, micro-sabbaticals and deliberate exits from high-pressure roles. This fragmented approach reflects a loss of faith in linear career growth among Gen Zs.
Artificial Intelligence and Uneven Economic Confidence
Artificial intelligence (AI) adds another layer to the financial situation of Gen Z. For most young adults, particularly in developing economies, AI is a device that widens access to relevant skills and information. In such contexts, the dependency on generative AI is high and often linked to a sense of opportunity.
In more developed economies, the response is more anxious. Around 52 per cent of Gen Z employees in the US are concerned that they would be replaced by someone who has more advanced AI skills. The fear contributes to larger income insecurity as AI technology is now widely implemented in education and employment.
There is an impact of AI on financial decision-making as well. AI is being used by many Gen Zs to compare their options, calculate how much to spend, or estimate risk. The report states that confident AI responses can reduce further verification of information, shaping decisions without deeper questioning or understanding the core.
Institutions Under Transactional Scrutiny
The interactions between Gen Z and financial institutions, in general, are now being influenced by financial pressures. When institutions fail to respond quickly to rising costs, insecure income and debt pressures, or rely on broad promises instead of practical support, Gen Z is more likely to disengage and look for alternatives.
Culturally, Gen Z is stepping back from high-engagement participation. Social media is used more for passive consumption and escapism than for self-expression, says the report. This reflects the desire to save energy within an overstimulated and stressed financial environment.
A Generation Managing Limited Slack
The Gen Z-eitgeist 2026 report paints an image of a generation working with a low level of financial and emotional buffer. Risk-taking capabilities is not being driven by optimism, but by constrained choices. Simplification, cautious, and selective engagement have become reasonable reactions for Gen Zs to existing pressures.
As one of the largest generations in the world, estimated at around 2 billion people, Gen Z’s growing exposure to debt, risk and income insecurity signals how deeply current economic conditions are filtering into daily financial behaviour.
