download Learn more about how young consumers feel about their finances, how they spend their money, and plan for their financial future in the latest Gen Z report.
Gender disparities due to economic stress begin at a young age.
Women consistently express more financial insecurity than men. These worries are typically driven by factors such as the gender pay gap, increased caregiving responsibilities, and increased family spending and shopping burdens, but a new study from Morning Consult shows that women's financial worries are higher than that of adults. It has been shown that this is not limited to a certain period.
Gen Z women are less optimistic about their financial situation than Gen Z men
Young women (13-26 years old) are less likely than men to say they are doing well financially.
When asked to rate their financial situation, 38% of Gen Z women said they were “under water” or “barely making ends meet,” 8 percentage points higher than Gen Z men. Masu. Young women are also less likely to express their utmost confidence in their own financial situation. Just 5% of Gen Z women say they have more than enough money for their wants, needs, and savings.
And it's not just current money issues that young women are more likely to express, this gap extends to feelings about money in the future as well. While the majority of Gen Z women, like all Gen Zers, do believe they can do better financially than their parents, they are more likely than men to say otherwise. About 3 in 10 (29%) Gen Z women say they are worse off financially than their parents, 7 percentage points higher than Gen Z men.
Female Gen Zers are more worried about getting along financially with their friends than male Gen Zers.
All Gen Zers are clearly stressed about the economy and personal finances, but young women are more worried than young men.
For Gen Z women, concerns about being able to meet their basic needs are nearly universal. Roughly 8 in 10 Gen Z women say they are concerned about food prices (83%), housing costs (80%) and gas prices (79%), 8 points more than Gen Z men. It's getting expensive. Their worries go beyond basic needs. Gen Z women expressed higher concerns about nearly every economic and personal finance topic we asked.
In particular, the gap in concerns is widest when it comes to keeping pace with friends. Female Gen Zers are 15 points more likely than male Gen Zers to say they are concerned about getting along financially with their girlfriends and colleagues.
Gen Z women’s spending habits are different from Gen Z men’s.
One major factor that may be contributing to young women's financial stress is their spending. Unlike financial worries and concerns, there is a small difference between what Gen Z women and men claim to be buying. Across 20 spending categories, the average difference between Gen Z women and men who said they made purchases in the past month was 4.15 percentage points.
There are also important categories in which Gen Z women are more likely than Gen Z men to say they have made a purchase. For example, 57% of Gen Z women said they purchased apparel or clothing in December 2023, 13 points higher than men. Female Gen Z girlfriends were also more likely to purchase personal care products and services, such as shampoo and haircuts, than their male Gen Z counterparts. In December 2023, about 6 in 10 Gen Z women (57%) made such a purchase, while about half (49%) of Gen Z men did the same.
Spending more on apparel and personal care than men may not all be a choice. Social pressures and expectations have led many women to increase their spending in these categories. Products designed and sold specifically for women in these spaces tend to come with hefty price tags, also known as the “pink tax.”
Early financial education is key for Gen Z, regardless of gender
Appropriate financial literacy education can help alleviate some of this financial anxiety.
Considering half of Gen Z women say they don't use a budget to organize their spending, budgeting is a great place to start. But it's not just young women who benefit from this type of education, but young men as well. Additionally, more than 4 in 10 (44%) Gen Z men say they don't use a budget to organize their spending.
Financial providers that support young consumers with budgeting tools are best prepared for future planned and unplanned expenses and have a greater chance of gaining loyal and responsible customers. Masu.
