Growing up has never been a walk in the park, but Gen Z faces challenges that would make previous generations’ heads spin. A recent global 2025 survey conducted by EY´s Generational Dynamics found that 87% of Gen Z respondents globally rate financial independence as a main priority.
On the other hand, just 45% of young adults report being completely financially independent from their parents, highlighting the gap between dreams and reality.
While we all spend a lot of time making it seem like it’s smooth sailing by 25 on our Instagram and Facebook feeds, the reality is far messier than a college dorm room post finals week. How does Gen Z move ahead when we’ve been handed everything from student loans that follow you around like a bad breakup to job markets that feel like playing musical chairs with half the chairs missing?!
Financial independence feels like climbing Mount Everest in flip-flops
Financial freedom is not a viable option for Gen Z. According to Bank of America’s 2025 Better Money Habits report, 46% of young adults in Generation Z ages 18–27 receive financial assistance from parents or family.
Gen Z is working hard to break the mold of misconceptions that surround their generation by finding financial independence in a burdened economy. Meanwhile, an increasing number of young adults are forced to make the impossible choice between paying rent and having a social life.
The irony? So they now have more reason than ever to seek financial independence, and just as much reason to fear that the economy keeps changing the rules of the game.
Housing costs make monopoly money look reasonable
The housing market has said Get out of here. Between 2024 and 2025, 1.6 million households of Gen Z and millennials went missing due to a lack of affordable housing. As a result, American homeownership is a pipe dream.
They are homeless, some even resorting to living out of their cars or converted vans and presenting the nomadic lifestyle as a choice instead of a last resort.
Mental health isn’t just a buzzword; it’s survival
The numbers prove the point regarding why Gen Z is not playing the mental health game. Harmony Healthcare IT’s 2025 State of Gen Z Mental Health reported that 46% of Gen Z adults aged 18–27 have already been diagnosed with a mental illness and are taking medications to help them deal with these issues. And that is not a weakness; it is acknowledging truth head-on.
Social media, in all its glory, is a significant part of the inconsistency battle. This generation is not going to sit quietly as past generations did. These are the people who are redefining self-care.
Student debt follows you like a loyal but annoying pet
Student loans have become the unwelcome roommate that never moves out. The median student loan debt for young adults aged 25–29 is $25,000 – $26,000. Those loans don’t have an expiration date; they can hang over a grad’s head for decades, tainting everything from apartment requests and job applications to future dating decisions.
Most graduates joke that their diploma also came with a lifetime subscription to debt they never asked for. When you’re paying more in student loans than some people do for rent, the idea that college will pay off with financial success sounds like a bait and switch.
How job hunting is just like playing hunger games
It is a cutthroat job market where, even for entry-level positions, 3 years of experience is required. Greenhouse’s 2024 State of Job Hunting report has found that out of 1000 job applicants in the U.S., almost 79% experience anxiety when job searching, with younger Gen Z candidates particularly hit by increasing frustration and competition. And let’s be real, who could blame them?
Jon Stross, co-founder of Greenhouse, puts it more bluntly: “Gen Z is facing the worst of the numbers game… competition is stronger than ever.” The result is that companies are looking for unicorn candidates who can do everything, but for entry-level pay. Landing in that exhausting middle ground where they are overqualified for some jobs and underqualified for others.
Friendships are like sand castles at high tide
Gen Z is currently coming of age to the slow realization that some friendships will disintegrate over time. Best friends from childhood often find themselves with differing views on priorities and values. Sure, you can make new connections in college, but honestly, keeping them after graduation is just being mean, since we all know no one has the energy for that.
To rub some salt on your wound, social media is going to expose precisely what has happened in your absence, just in case you were thinking of being all dramatic and mysterious.
Social media creates a funhouse mirror version of reality
A 2024 survey highlighted by Deep Creek Times reported that Gen Z spends an average of six hours and 27 minutes per day on their phones, with a staggering majority, around 69%, admitting they feel addicted or that their relationship with the device is unhealthy.
The numbers get worse. Imagine trying to live your authentic life while constantly comparing it to everyone else’s highlight reel. Everyone else seems to have everything together, having landed their dream job and looking stunning in every Instagram picture.
While this generation was born and grew up with social media, they know it is already 99% façade. Still, they are very easily played by comparative trap.
Life milestones got pushed back to “someday” status
By now, it’s no secret that Gen Z has put adulting milestones on pause — and intentionally at that. They’re deliberately delaying purchases like homes, marriages, and even regular careers.
This slow-life approach undermines the typical timeline of every previous generation, and it makes our parents completely insane. And tiny rings serve as age markers, unless you never plan on achieving the already impossibly high dream of home ownership. Now, the pressure to have it all figured out by 25 has been replaced with the idea to slow down and do it right.
Work-life balance beats corner offices every time
Just 6% of Gen Z aspire to an age-old ambition: the corporate high flyer working their way up through increasingly senior leadership roles, which likely gives most older executives heart palpitations. The new generation no longer values the corporate ladder over flexible schedules, mental health days, or enjoying their lives.
They saw their parents give up everything for careers only to have those same jobs turn their backs on them, so they’re avoiding that one. Many people would rather work from home in their pyjamas than put on a suit and sit in an office.
Financial literacy is like learning a foreign language
As a result, Gen Z is being given the keys to the world with everything at their fingertips, thanks to technology. An astonishing 79% of young adults had not written out a budget for themselves, 76% had never paid a bill on their own, and 77% had never thought about setting some financial goals. They learned about fighting the Revolutionary War in elementary school.
Still, they never learned how to balance a checkbook or comprehend compound interest. According to MarketWatch, 57% of Americans live paycheck to paycheck, with young adults being more likely to report this struggle. Many learn through trial and error, making expensive mistakes along the way.
Imposter syndrome hits different when everyone’s an expert online
Social media creates a world where everyone seems like an expert, leaving Gen Z feeling constantly behind. The pressure to “have it all figured out” comes from every direction—Instagram influencers, LinkedIn success stories, and family expectations.
“Nobody has life completely sorted out, whatever their age.” Many young adults feel like frauds, waiting to be exposed as clueless. The truth? Everyone’s just figuring it out as they go, with some people showing more confidence than others.
Being authentic feels like swimming upstream
Staying true to oneself is the absolute key life goal of all, more so than in any other generation in history. The difficulty is, in fact, just going out and doing it when every single platform incentivizes performance over honesty.
Social media promotes a fake version of yourself, workplaces need certain types of people, and relationships can demand so many different things from you. The exhaustion of being “on” all the time is absolute, especially in a world where everyday norms don’t translate to good likes and shares.
Key takeaway
We have an entire generation that isn’t broken or behind schedule; they’re just coming of age during one of the most challenging times in modern memory. These twelve realities may seem quite sobering, but this generation is confronting them all with far more knowledge, ingenuity, and tenacity than they are given credit for.
They are a new generation that is redefining success, prioritizing mental health, and refusing to accept excuses like “that’s just how it is.” No generation has ever had a direct ticket to becoming an adult, but Gen Z is showing that there’s no one-size-fits-all way to make sense of it all. Their challenges are real, their paths are new, and the book is still being written on them.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information. It is not intended to be professional advice.
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