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It’s official: Gen Z is taking over the economy.
According to WWD, a new report from Gen Z Planet just revealed that as more Gen Zers (ages 16-26) enter the workforce, Gen Z spending power has skyrocketed to $1.1 trillion. And after taxes? They’re left with $950 billion in disposable income. That’s a massive number—and brands that aren’t paying attention are making a big mistake.
But here’s the twist: Even though Gen Z is raking in cash, many are still living at home, dealing with student loans, and navigating high housing costs. So how are they still managing to spend big and stay optimistic? Let’s break it down.
Gen Z is Earning More Than Ever
A few years ago, Gen Z was mostly known as a generation of students and part-time workers. Now? They’re stepping into full-time jobs, leveling up their careers, and launching their own businesses.
According to the report, Gen Z’s $1.1 trillion income comes from:
Full-time and part-time jobs (pretax earnings)
Allowances & financial support from parents
Side hustles and entrepreneurship
And let’s talk about that last one—Gen Z’s side hustle culture is huge.
Side Hustles Are Fueling the Gen Z Economy
Gen Z isn’t just working traditional 9-to-5 jobs—they’re also hustling on the side.
46% of Gen Zers surveyed said they have a side hustle
30% of high school & college students already have a side gig
On average, side hustlers are making $300 extra per month. Altogether, Gen Z’s side hustles are generating $72 billion annually
From freelancing and reselling clothes to content creation and running small businesses, Gen Z is proving that multiple income streams are the new norm.
Gen Z is Earning More—But They’re Not Fully Independent Yet
Here’s where things get interesting: Even though Gen Z has serious buying power, many still live at home or rely on some level of parental support.
42% of Gen Z adults (over 18) still live with their parents
That number drops as they get older, but it’s still higher than previous generations at this age.
Why? Because life is expensive.
High housing costs are making it harder for young adults to move out.
Inflation is keeping everyday expenses high.
Student loans are a huge financial burden for many
But despite these challenges, Gen Z remains optimistic about their financial future.
Gen Z is Financially Savvy & Ready to Spend
Unlike previous generations, Gen Z is actively educating themselves about money.
They’re learning about investing, saving, and financial independence
They’re prioritizing financial literacy through social media and online resources
And despite economic challenges, they remain optimistic about their future
That’s why brands need to take them seriously.
If your business isn’t paying attention to Gen Z’s spending habits, you’re missing out on a massive opportunity.
What This Means for Brands & Businesses
Gen Z isn’t just spending money—they’re reshaping the economy.
They’re tech-savvy and digital-first—if your brand isn’t online, you don’t exist to them.
They care about values, authenticity, and sustainability—they’ll support brands that align with their beliefs.
They expect personalized, interactive, and engaging experiences—static ads and outdated marketing won’t work.
Simply put: Gen Z knows their worth, and they’re choosing where to spend their money wisely.
Final Thoughts: The Future of Gen Z Spending Power
With $1.1 trillion in spending power and a strong entrepreneurial mindset, Gen Z is officially a financial force to be reckoned with.
They’re working hard, side hustling, investing in their future, and changing the way we think about money. And even though many are still figuring out full financial independence, they’re doing it with confidence and optimism.
So, whether you’re a business owner, marketer, or just someone curious about the next big economic shift—one thing is clear:
Gen Z is the future, and they’re just getting started.
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