Gen-Zs Are Learning Financial Responsibility in 2025 – Here Is How You Can Do The Same

As an unapologetic Gen Z, I recently joined the world of financial responsibility. For any millennials or boomers reading this, they are perhaps thinking “It's a miracle”! The question of why Gen Z has been deemed one of the most financially irresponsible generations lies within the mass media and consumerism that has erupted into our world over the past 10 years. Many Gen-Zs base their identity and worth on purchases, clothes, and social media presence. A new dress, an advanced phone, and a social media influencer’s endorsement - pressed on you on every occasion, truly consumption was the answer to happiness. But now, many of us are waking up to the realisation that this cycle is not only unsustainable but also detrimental to our financial well-being. 

In 2025, it is clear that a shift is happening. Many of my fellow Genz-ers are now making financial decisions that prioritise future gains for the short-term restriction. For a generation that is used to instant gratification and dopamine hits, trust me this is a difficult task. No one likes to change his or her perspective, especially when it comes to money, for me it was not easy getting where I am today. I was uncomfortable about many spending habits that I possessed, and took a lot of repositioning to not displace my habits. Always helpful though because the results were spectacular. Here is what I have learned about consumerism and how to get out of it and revolve around the idea of being financially responsible - and you could do the same.

Questioning Consumer Culture

One of the biggest hurdles I had to overcome at the beginning of my journey was the relentless push of consumerism. Gen Z grew up in a world where social media reigns supreme, and with it came the constant pressure to keep up appearances. We’ve been sold the idea that success is measured by material possessions, designer trainers, the latest iPhone, or the most Instagram-worthy holiday. But at some point, I had to ask myself: Is this making me happy, or am I trying to keep up with the status quo?

The truth is, no matter how much I bought, there was always something else to covet. The dopamine rush of a new purchase would fade quickly, leaving me wanting more. To break this cycle, I started unfollowing influencers and brands that perpetuated this “buy, buy, buy” mentality. If you truly reflect on the items that you have, you will begin to recognise just how many things you possess, most of which are unused and a result of a mindless shopping spree. I now take care of the things I own. I clean my most worn Arabic name necklace and wash my favourite clothes in a colder setting to avoid shrinkage. I also began practising mindful consumption, asking myself before every purchase: Do I need this, or is this just an impulse? More often than not, the answer was the latter. 

Tracking Spending and Building a Budget

Once I started cutting back on unnecessary spending, the next step was figuring out where my money was going. This part was an eye-opener. When I sat down to track my spending, I realised I was frittering away money on things that didn’t add value to my life such as takeaway coffees, subscriptions I barely used, and countless late-night online shopping sprees.

Building a budget became my financial lifeline. It wasn’t about restricting myself but rather about aligning my spending with my priorities. I started allocating money towards savings, investments, and experiences that truly mattered to me, like travelling or spending quality time with friends. Seeing my savings grow gave me a sense of empowerment that no material possessions ever could.

Embracing the Power of Saving

Saving money used to feel like a chore or an impossible task in a sea of content spending.. I’d always considered it something you do later in life when you’ve “made it.” But starting small and being consistent has taught me the value of saving, no matter how modest the amount. Setting up a separate savings account and automating monthly transfers was a game-changer for me, especially when online banking allows for separate saving pots for whatever you are saving for.

The habit of saving has also made me more patient. Instead of rushing to buy something, I now save up for it. This simple shift has helped me avoid debt and appreciate my purchases more when I finally make them.

Investing for the Future

If you’d told me a few years ago that I’d be investing by 2025, I wouldn’t have believed you! I thought investing was just for the “finance bros”, or crypto advocates. However, with the rise of accessible apps and online resources, investing has become more approachable for Gen Z.

Educating myself was key. I spent hours reading about the basics – understanding stocks, funds, and how compound interest works. Starting small, I began investing in low-cost index funds and putting money into ISAs. The idea of putting my money to work and watching it grow over time was incredibly motivating. It’s not about getting rich quickly but building long-term wealth and financial security. Now, I can sip on mimosas when I’m 60 on a 6-month-long cruise, just because I invest a small amount of money each month! Please do your research on investing, however, and get your information from reliable and regulated sources.

Rejecting the "Hustle Culture" Narrative

Another lesson I’ve learned on this journey is to reject the toxic hustle culture that tells us we must constantly grind to achieve financial success. Don’t get me wrong, I think working hard and earning money is important. But I’ve also realised the importance of balance and self-care, and knowing when its time to switch off. Being financially responsible isn’t just about saving and investing; it’s about ensuring that your financial habits support your overall well-being.

Instead of chasing every side hustle or burning myself out, I focus on doing my best at my primary job while being mindful of how I manage my income. This shift has allowed me to feel more at peace with my financial goals, rather than constantly feeling like I’m falling behind.

The Path Forward

So, how can we all move forwards? Well, becoming financially responsible isn’t about perfection, it’s about being self-aware and showing progress. For me, it’s been a journey of unlearning harmful habits, embracing new ones, and staying committed to my goals. The shift away from consumerism has been liberating, and focusing on saving and investing has given me a sense of security I never thought I’d have at this stage of my life.

So, to all my fellow Gen Zs out there: let’s redefine what it means to “have it all.” It’s not about owning the latest trends or keeping up with the Joneses. It’s about living intentionally, prioritising what truly matters, and creating a future that’s both financially stable and fulfilling. Together, we can prove that our generation isn’t just financially savvy, we’re paving the way for a more mindful and empowered way of living.

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Amy Jones is a freelance health and wellness writer from Manchester UK. She loves researching and writing about health topics, as well as keeping up to date with the latest health news, and eco-friendly brands. Her passion for health and wellness stems from her innate desire to educate people on how to properly take care of their bodies, spot any early signs of illness and take the best preventative methods. When not writing, you can find her taking long walks in the countryside with her dog, listening to groundbreaking podcasts or browsing her nearest bookstore.