Generation Z, people born between 1997 and 2012, will accumulate an income exceeding USD 74 trillion by 2040. – we read in the Bank of America report.
This will be a huge change for a generation that has struggled with high unemployment, low employment and higher costs of living in recent years and has been forced to give up the dream of owning their own home.
Generation Z, like millennials, grew up in a difficult economic environment that left them struggling to achieve what were once considered traditional milestones in their lives, including buying a home and starting a family. Nearly a third (32%) of Generation Z respondents surveyed by Bank of America said they feel behind their parents their age when it comes to achieving their financial goals.
Is Gen Z a “generation of spendthrifts”?
Unable to save much for significant achievements, Gen Zers are known to spend money on relaxation, concerts or pampering their pets. According to Bank of America, they are the “generation of spenders”, reporting a rapid increase in spending.
According to the report, Generation Z is expected to accumulate a fortune of approximately $36 trillion. over the next five years and over USD 74 trillion. until 2040.
Reason? “A huge transfer of wealth” from the baby boomers, who will pass on assets to younger generations in the coming years, the authors of the analysis note.
Generation Z spends more than they save
This also means that Gen Zers, who are now spending more money compared to previous generations, are likely to have a huge impact on global spending patterns.
They are likely to be the generation that will most influence the economy, markets and social systems
– researchers predict.
Meanwhile, the authors of the study note that Generation Z continues to struggle with financial and economic challenges. On average, they spend “twice as much” as they save, which the report notes may be partly due to the current high cost of living.
The report also said the number of Gen Z households receiving government unemployment benefits increased by almost 32%. between February 2024 and February 2025, according to Bank of America deposit account data.
Generation Z's biggest advantage
In an interview with the New York Post, financial education expert Amanda Frances advised Generation Z to “prepare” for their changing role in the global economy. She recommended becoming “investors” rather than just consumers.
Frances also tells the Post that Gen Z has an advantage that older generations don't have: “Their digital fluency gives them unprecedented access to wealth-building opportunities through fintech, e-commerce, content creation and AI-powered businesses,” she explained. “Those who embrace innovation will lead the next economic boom.”
