The youngest generations in today's workforce, Generation Z and Millennials, are managing their money with a combination of confidence and anxiety given the financial landscape. Not content to march to the beat of someone else's drum, they're completely rethinking how they work — and how often they want to get paid for it.
We surveyed 500 Gen Zers (ages 16-27) and 500 Millennials (ages 28-43) to explore how they feel about everything from budgeting to binge spending.1 Read on for all the results — and what they reveal about how Americans want to unlock financial progress™.
Gen Z and Millennials are confident — but also anxious — about money
69% of Gen Z respondents feel confident about managing their money — significantly more than the 55% of Millennials who said the same. This confidence could be due to timing: Gen Z has seen steady wage growth, with a spike at the pandemic's peak. Research shows their wages are growing more than twice as fast as those of older workers.2
Yet beneath this confidence is a layer of financial anxiety among both Gen Z and Millennials, specifically about the rising cost of living and healthcare expenses, and the inability of salaries to keep up with these costs (despite wages going up).
As a result, the youngest members of the workforce are increasingly turning to part-time work and exploring new ways to manage their money by putting themselves in the driver's seat when it comes to their pay.
Gen Z is thinking outside the box with jobs and pay
Gen Zers are revealing themselves to be confident and adaptable when it comes to managing money, even with lower salaries and nontraditional pay structures.
Many now see part-time jobs and the gig economy as viable sources of steady income and a reliable financial foundation. For instance, 21% of Gen Z respondents reported that part-time jobs are their primary source of income. While only 12% of part-time workers earn more than $60,000 annually, 30% describe their financial situation as adequate.
It's clear that Gen Z is handling all kinds of financial situations like pros. From mindful budgeting to financial literacy resources, Gen Zers are leveraging technology to stay on top of their money, even when their income may not be as steady as they'd like.
What's stressing people out about money?
Despite the general trend toward financial confidence among the youngest generations in the workforce, a whopping 93% of all respondents cited the rising cost of living as their top concern. This isn't surprising given that inflation and housing costs have made it harder for young people to make ends meet
In addition, 78% are anxious about healthcare costs, which remain a significant financial burden for many, particularly in the gig economy.
Perhaps more troubling is the stress this is causing all generations: nearly half of Americans (47%) say 2024 has been the most stressful year of their lives financially. Another 42% say they avoid looking at their checking account balance out of fear.3
One potential game changer that could help reduce financial anxiety? On-demand pay.
How MyPay can help build your financial confidence
So, how can Gen Zers and Millennials start to grow their financial confidence?
MyPay® is a new product from Chime that gets money in your pocket when you choose, even if it's before your scheduled payday. It's not on-demand pay, but here's how it can help:
Chime's MyPay lets you get up to $500 of your pay before payday.4 There are no mandatory fees, no credit checks, and no interest5 to get money when you want. When you take an advance, the money will arrive in your Chime Checking Account within 24 hours, fully fee-free. Need the money sooner? For $2 to $5 per advance, you can get it instantly.
MyPay is one example of a new way to approach money management – helping you take control of your finances, pay for that spontaneous dinner out with friends, and so much more, rather than waiting on a pre-determined, outdated pay structure out of step with how people make and spend money today.
What are the biggest concerns about on-demand pay?
Despite its many benefits, some people are hesitant to adopt on-demand pay options. The main barriers include:
Fears of becoming dependent – how do you use it only when needed?
Maintaining a budget – can you adapt your money management with a new way to think about pay?
Potentially high fees – many people rightfully worry that fees would cancel out the benefits of accessing part of your pay ahead of payday.
With MyPay there's no fee to get an advance within 24 hours, and only a $2 to $5 per advance to get it instantly. There's also no interest.5 After all, it's your money!
Valid concerns about becoming dependent on a feature like MyPay can be addressed with the right financial tools and education – which likely explains why 85% of all respondents believe it is important to have financial education along with early access to pay. This is why Chime's mission is to provide no-nonsense, easy-to-understand financial insights on In the Green™.
Why are biweekly paychecks still the norm?
Nearly half (42%) of Gen Z respondents and 25% of Millennials expressed strong interest in on-demand pay options like MyPay. In fact, 36% of people would switch to an employer that offered earlier access to their pay. Yet, 39% of them still rely on traditional biweekly paychecks.
Biweekly pay is deeply rooted in American industry – find out about the history of the two-week pay cycle and why it's been the status quo for so long.
As technology redefines how we manage our money, there's a growing interest in on-demand pay and products like MyPay that allow you to access part of your pay ahead of your regularly scheduled payday.
Take control of your finances with MyPay
For Gen Zers and Millennials, financial confidence and anxiety go hand in hand. While they're more comfortable with managing money than previous generations, they're also facing new, complex financial challenges.
MyPay offers a practical solution, helping to bridge the gap between their financial confidence and the reality of their financial anxieties. By offering access to pay through MyPay and supporting members with features like SpotMe®, Chime makes it easier for people to take control of their finances to support their immediate needs and long-term goals.6
Chime has a lot of great features and products to help serve our members. Learn more about the difference between MyPay, SpotMe, and Get Paid Early™.