Remember when adults told you that if you just worked hard, went to college, and followed the rules, everything would eventually work out? For Gen Z, the classical playbook has been more of fiction than reality.
Growing up amid economic uncertainty, the fallout from a global pandemic, and unprecedented social upheaval, this generation quickly learned that the promises made about adulthood were often empty.
More than half of them are battling to gain financial independence, and the number of people under 35 owning homes in the country has reached its lowest point, with rates dropping to 24% in 2024, according to the National Association of Realtors.
The road to success for Gen Z, once a parade of promise, has turned out to be a bumpy, uncertain journey fraught with challenges they never thought they would face.
Getting a college degree will set you up for life
This may be the greatest lie of all. Gen Z was told that a bachelor’s degree was their golden ticket to financial security and career success.
The reality? Research from the Federal Reserve Bank of St. Louis has shown that college graduates aged 23-27 have experienced an elevated unemployment rate compared to the rest of the population, despite accumulating significant student debt.
Although earlier generations might have thought that with their degree in hand, the doors would open, Gen Z graduates often feel overqualified for entry-level jobs, yet underqualified for those that require prior experience they never had the opportunity to gain.
If you save up, you’ll be able to buy a house
Gen Z is far less susceptible to the American Dream of homeownership than it is perceived to be. While older generations could buy homes by saving a portion of their income, today’s housing market tells a different story.
A Credit Karma report found that nearly one-third (31%) of Gen Z adults still live with their parents because they can’t afford to buy or even rent their own spaces.
What used to be a starter home is now several times more expensive than it was in the past, regardless of how diligent people may be at budgeting their money.
Your 20s are the happiest time of your life
The twenties came to be seen by previous generations as a period of carefree living, filled with numerous adventures and discoveries. In Gen Z, the 20s resemble each other in very different ways.
A Bloomberg study reveals that those in their early 20s are earning less, carrying more debt, and experiencing higher delinquency rates compared to millennials at the same age.
As a result, Gen Zers report being “extremely stressed,” making these years feel more overwhelming than joyful.
Learning how to budget will bring financial independence
While financial literacy is essential, Gen Z quickly learned that you can’t budget your way out of systemic economic problems.
A ResumeTemplates survey found that only 13% of Gen Z employees believe they’re being paid fairly, with many feeling they should earn between $70,000 and $100,000 annually to meet basic expenses.
When the cost of living outpaces wages, even the most disciplined budgeting can’t create money that isn’t there.
You’ll be able to retire comfortably with money saved up
The idea of retirement is a joke to many Gen Zers. A TIAA Institute report found that only 20% of Gen Z adults are actively saving for retirement, and many doubt they’ll ever be able to stop working given their low incomes and high debt loads.
When you’re struggling to pay rent and student loans, putting money aside for decades in the future feels impossible.
Health insurance comes guaranteed with a good job
Gen Z was taught that a good job ensured extensive benefits, including health insurance. The majority of Gen Z adults admit that their health coverage is insufficient for their needs.
Many are working jobs that either don’t offer insurance or provide plans with such high deductibles and co-pays that they’re practically useless.
Being loyal to one company leads to success
The myth is that being a hard worker and showing loyalty to the company is a myth; you will be rewarded with promotions and retention.
Gen Z has witnessed mass layoffs, wage stagnation, and companies prioritizing shareholder profits over employee welfare.
This is why Gen Z has become known for “job hopping.” Around 83% of Gen Z identify as job hoppers, frequently changing jobs to seek better salaries or career growth. They’ve learned that loyalty is rarely reciprocated, and the only way to advance is often to leave.
You should be grateful for any job you get
This toxic mentality suggests Gen Z should accept poor working conditions, low pay, and workplace abuse because “at least you have a job.”
Gen Z, however, has decided to prioritize their mental health and overall well-being, and they often choose unemployment over toxic work environments.
They’ve realized that some jobs cost more than they pay; in terms of mental health, personal relationships, and future opportunities.
Becoming an adult means stability and independence
Adulthood was supposed to bring financial stability and personal autonomy. Gen Z is, therefore, being impacted by unprecedented levels of uncertainty. Nearly 50% of Gen Z run out of money monthly, and less than 25% consider themselves financially stable.
Economic insecurity, climate change, partisan politics, and, most recently, the coronavirus pandemic have made elements of adult stability feel out of reach.
Gen Zers often have to live with roommates well into their 20s and 30s, and some even move back home with their family due to financial constraints, not by choice.
The traditional American Dream is attainable
It is the white picket fence, homeownership, marriage, 2.5 kids; this American Dream seems increasingly elusive.
Most Gen Z members doubt that they’ll surpass their parents’ financial status and express skepticism about traditional milestones, mainly due to economic and environmental concerns.
Joe Depa, EY’s Global Chief Innovation Officer, explains that Gen Z is the “pragmatic generation,” which redefines success as long-term stability and well-being, rather than wealth accumulation alone.
Climate change is a problem that has left many to question if it is right or wrong to bring children into a world full of uncertainty.
Economic systems will support your future
Gen Z has little faith that existing economic and social systems will be there for them. They worry about the viability of Social Security and fear that climate change will fundamentally disrupt their lives and careers.
They have experienced economic collapses, a pandemic, and growing inequality, which has given them sufficient habitus to mistrust the institutions their parents had assumed were trustworthy.
You’ll find secure, long-term career paths easily
The notion of having one job and working 30 years is no longer in the cards. Gen Z faces a rapidly changing job market where automation threatens traditional roles and the gig economy has replaced stable employment for many.
A 2023 Deloitte survey found that Gen Z prioritized work-life balance as a top factor when choosing an employer, driving their preference for flexible work arrangements like the gig economy over traditional full-time roles
They’re adapting to a world where career pivots aren’t just common; they’re necessary for survival.
Mental health will be better as an adult
Adults promised that the anxiety and stress of adolescence would fade with maturity. Instead, Gen Z expresses more stress and mental health-related issues, which are usually connected to economic pressures and an unstable future.
The constant pressure to succeed in an increasingly complex world, combined with social media’s amplification of life’s challenges, has made adult mental health struggles more common, not less.
You can quickly move out and gain independence
The assumption that children will automatically leave or become independent at the age of 18 has proven to be invalid.
The high cost of living, student debt, and limited employment options mean many Gen Zers are living with their parents well into their twenties or beyond.
This extended dependence isn’t due to laziness or immaturity; it’s a rational response to economic realities.
A 2023 PLOS One study shows a steady rise in parental co-residence over the last two decades, with young adults living with parents increasing significantly, especially among lower-income groups.
Success is a straightforward path based on effort
The most damaging lie is that success follows a simple formula: work hard, follow the rules, and you’ll be rewarded.
Gen Z has been well aware of the power of structural economic issues, systematic inequalities, and externalities to influence the level of outcomes. Merit alone isn’t enough when the game itself has undergone a fundamental change.
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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