Will Gen-Z be the first generation to rely solely on unconventional financial outlets like social media influencing? What will this mean for the traditional 9-5? What will this mean for the future economy? Only time will tell.
In any introductory financial education class, curious learners and creditors alike will learn about prioritizing necessities like food, utilities, and rent over luxuries like eating out, gym memberships, spa subscriptions, and the routine mani-pedi touch-up. Experts alike have hailed the importance of budget consciousness and until recently have understood that the tight-budgeted benefit the most from skirting on fun in favor of the essentials. But in recent years Gen-Z and Millenials have redefined the traditional understanding of necessities. With record high-interest rates, rent, and homeownership essentially out of the question, younger generations are no longer pining for what their parents or grandparents had, rather they are opting into ambitious travel plans, pricey self-care routines, and short-term relationships with overly pampered pets as financial trajectories.
To only feed this luxury-centric culture, online shopping platforms have restructured their e-commerce strategy to reward exaggerated product reviews from social media influencers that inflate the “life-changing” benefits of goods and services, preying on their followers to make impulse buys and in turn inflate their favorite beauty guru’s pockets from the affiliate commissions. There’s a new trend of dishonesty at play, of garbage being made out to be miraculous, and people without defined financial goals are carrying the brunt of it.
Not limited to unnecessary splurges, Gen-Zers, and Millennials also struggle to define financial aspirations because of the hefty and ever-increasing cost of higher education. Where many scholarships or outside aid organizations cater to the impoverished, first generation, minority, or survivor of every calamity on the face of the earth applicant, average Joe’s that don’t fit the funding criteria but still want to go to college have to scrape together whatever they can to pay for their 4 years. Only then can they write undergrad on their resume and maybe get a job with an annual salary of 60,000, but..oh wait: it went to the person that has a master’s. They can get a master’s, but the job will go to the one with a Ph.D. The American job market has become a wild goose chase of trying to get a job that pays well, trying to get a better education for a better job, and trying to pay for said education with a job that doesn’t pay well.
Because of this ultimatum, students have become extremely competitive– as only the best of the best can get the job everybody wants. This has created hostile environments in prestigious universities, fostering a community of students that benefit, not from helping their peers, but by stepping on them to make their way up.
“The competitive nature of college can foster a toxic environment where students are constantly comparing themselves to their peers,” said Lynn Frederick Dsouza, a business development manager, in an article published on Linkedin.
If the Kung Fu Panda Trilogy had an ugly step-sister in the real world, it would be the inflation, “must-have” culture, and college tuition trio. Because of this, young people are seeking out alternative routes to income.
