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Why Gen Z's idea of 'financial success' is so vastly different than every other generation

A salary of nearly $600,000? Are they serious?

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Gen Z's financial expectations are miles above the rest of us.

Have you ever thought about what threshold of income or net worth would make you feel successful financially? Not merely getting by or making ends meet, but like you've achieved a level of wealth that feels comfortable and secure? That number depends on a lot of factors, of course, depending on whether you have a family, the cost of living in your area and more. But as a survey of over 2,200 American adults shows, it also depends on your generation.

Averaging the numbers overall, Americans said a salary of $270,214 a year and a net worth north of $5.36 million would spell financial success for them, according to research from Empower. But those numbers are greatly skewed by the lofty ambitions of Gen Z, who say they'd need a whopping $587,797 a year salary to feel successful. Compared to Boomers with $99,874, Gen X with $212,321 and Millennials with $180,865, Gen Z's "financially successful" salary (as well as their response of $9.47 million for net worth) seems extraordinarily out of touch.

media.giphy.com

Keep in mind, these numbers come from Gen Zers who are 18 years and older, so it's not like it's skewed by a bunch of 13-year-olds who have zero concept of money management. But how did young adults end up having such high expectations of what financial success means?

Here are a few possibilities:

Gen Z has been bombarded with aspirational content their whole lives

Instagram, TikTok, YouTube—these social media platforms include countless accounts designed to make us drool over aesthetics. Luxury travel. Beautiful homes. Fashionistas flashing name brand everything. The kind of content that used to be confined to "Lifestyles of the Rich and Famous" (yes, I'm dating myself) has moved into the mainstream and is now portrayed as a normalized ideal.

For older generations, "financially successful" generally meant being able to afford a nice house in a nice neighborhood, two new cars, a vacation every year and a solid retirement plan. It meant being able to send your kids to college and pay for a beautiful wedding without going into debt. It meant not worrying about money, but it didn't mean being able to afford all manner of luxury. Perhaps Gen Z sees success differently due to what they've seen on social media—and due to being the most marketed to generation in the least traditional ways.

via GIPHY

Gen Z is influenced by influencers who've gotten rich young

In past generations, wealth came with age and experience. Sure, there have always been people born into generational wealth, but if we were talking $600,000 a year salaries, we'd be talking CEOs and hedge fund managers and heart surgeons other careers that take some time to build.

But Gen Zers see YouTube creators and Twitch streamers their own age making millions doing things they believe they can do themselves. That's got to skew your perception of what's possible and what's a reasonable amount of money you can expect to make. It's entirely possible that a lot of these young adults simply don't realize what a normal salary is. Considering the fact that their "financially successful" amount is nine times the 2023 national average yearly wage, there does seem to be a disconnect between their perception and reality.

Gen Z grew up hearing repeated messages of financial uncertainty

Gen Zers are familiar with financial crises. They just started coming along when 9/11 happened, and they were still little when the housing market crashed. They've grown up hearing their parents talk about financial upheaval and hearing politicians use the economy as a weaponized talking point. The COVID-19 pandemic threw even more economic uncertainty on an already teetery foundation, right when a lot of Gen Zers were just starting to make their own money. Toss in the bonkers cost of college tuition, unaffordable housing and post-pandemic inflation and it's not hard to see why young adults just starting out might be under the impression that they need a megaton of money to feel financially secure.

media.giphy.com

Oddly enough, they're quite confident that they'll get there

One might assume that these sky high Gen Z dreams of financial success would feel out of reach for these young folks, but according to Empower, 71% of Gen Z respondents said they expected to achieve financial success in their lifetimes—more than any other generation. Is that an admirable sense of optimism or the hubris of youth? Are they setting themselves up for success or disappointment with such expectations? Hard to say.

We live in unprecedented and unpredictable times, so anything is possible. And if you're going to have high expectations, you might as well have the confidence to match them. We olders might roll our eyes at Gen Z's standard being so much higher than our own, but maybe they're onto something. (After all, a good chunk of them seem to be getting by without driver's licenses, so who knows what else they're capable of.) Dreaming big has its merits, so more power to you, Gen Z. Only time will tell if reality has other plans.

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Middle class families share how much money they have in savings and it's eye-opening

"I transfer money each paycheck but always end up needing to transfer it back."

Photo by Karolina Kaboompics/Pexels

Many middle class families are sharing that they have nothing in savings right now.

According to an April 2024 Gallup poll, 54% of Americans identify as part of the middle class, with 39% identifying as "middle class" and 15% identifying as "upper-middle class." That percentage has held fairly steady for years, but for many, what it feels like to be a middle class American has shifted.

Notably, inflation caused by the pandemic has hit middle class families hard, with incomes not keeping up with cost-of-living increases. Housing costs have skyrocketed in many areas of the country, mortgage interest rates have risen to levels not seen since the pre-Obama era and grocery bills have increased significantly. One government study found that cost of living has increased between around $800 and $1,300 a month depending on the state since 2021, putting a squeeze on everyone, including the middle class.

One woman shared that her family is just getting by and asked other people who identify as middle class to "chime in" with what they have in their savings account.

"I swear, every paycheck I am putting money into my savings, but needing to transfer it back within a few days," shared @abbyy..rosee on TikTok. "My registration is due. My husband's registration is due. He needed two new tires, even though they had a warranty. That's $300. My oldest needs braces, he needs a palate expander, that's $120 a month. Not to mention groceries are $200 more a week. Forget about feeding your family great ingredients because who has $500 a week to spend on perfect ingredients to feed your family?"


@abbyy..rosee

somethings gotta give #savings #middleclass #relatable

She explained that her husband makes enough money that they should be able to live comfortably, and that she quit her job because the cost of daycare was more than she was making.

"At some point, something has to give," she said. "What is going on? How do I save money?"

People in the comments chimed in with their savings account totals and it was quite eye-opening. Many people shared that they have $0 saved.

"We make the most money we ever have and have zero savings. We live paycheck to paycheck and every month I don’t know how we get by."

"I think the middle class is 1 personal disaster away from bankruptcy."

"Y’all got savings accounts?!?! 😂"

"I used to freak out if I had under $10k in savings, now I’m happy when I have over $150. 😫"

"We make almost 100,000 a year with no savings!!!! It's always something!!"

"I'm lucky if we have $500-$1K for an emergency. every single time we start saving something happens. the vet, the cars, the kids... something."

"Savings account? I transfer money each paycheck but always end up needing to transfer it back. My husband makes great money too but we are scraping by."

"$803 but we have to pay a $750 deductible this week b/c my Husband hit a deer soooo… back at it 😭 It’s exhausting. Constantly draining it, refilling it, transferring."

Some people shared that they do have some savings, but several said it was because they'd had an inheritance or other chunk of money come their way. Many people shared that their savings has dwindled as increased costs have taken their toll. Some people gave lifestyle advice to save money, but most agreed that just the basics have gotten so expensive it's harder to make ends meet much less put extra into savings.

Thankfully, the inflation issue appears to be waning, but even just plateauing at their current financial reality isn't ideal for many American families. Middle class is supposed to be a comfortable place to be—not rich, but well enough off to feel secure. That's not how many middle class folks feel, though. Most Americans don't have anything close to the amount of money saved that is recommended across the age spectrum, but at least hearing that others are in the same boat is somewhat comforting.

It can be vulnerable to put your financial reality out there, but it's helpful to hear what other people are doing and dealing with so we all feel less alone when we're struggling. Perhaps if people were more open about money, we'd all be able to help one another find ways to improve our financial situations rather than lamenting our empty savings accounts and wondering how to change it.


This article originally appeared on 7.17.24

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Nike employee goes from intern to CEO in 30 years

He's like if "Just Do It" was a person.

LinkedIn & Nike

Elliott Hill doesn't fit the usual mold of CEO of a multi-billion dollar global corporation.

He wasn't brought in from some fancy consultancy to cut the bottom line and boost profits. On the contrary. He worked his way up from the very bottom.

In this day and age, that's a pretty remarkable feat.

After being announced as the next leader of the storied company, a screenshot of Hill's LinkedIn profile went mega viral.

Why?

Well, just take a look.

Hill has only worked one place — Nike — where he started as a simple intern over 30 years ago. Now he's the CEO.

LinkedIn

Obviously, it was a long journey.

Hill spent two years as an intern, then worked his way up through Sales before becoming a VP. That alone took 10 years of hard work.

A few years later he was a President-level executive, and he continued to work on many different teams and divisions for the global brand, gaining valuable knowledge and experience with many different facets of the company

Hill briefly retired from Nike in 2020 before being recruited to come back this year.

Bringing Hill back on board comes on the heels of the previous President & CEO stepping down from the role.

John Donahoe was a former management consultant and previously served as the CEO of eBay and of a cloud computing company before joining Nike.

He was big on tech, big on cost-cutting, and big on layoffs. But he didn't know much about sneakers, or the Nike brand. The results were disastrous for what as once the biggest sneaker brand on the planet.

So Nike looked at its own homegrown talent to find a replacement, seeking someone who not only got the brand and business, but respected and understood its core customers.

Based on tenure and experience, there weren't many better candidates than Hill!

No one would ever accuse Nike of always doing the right thing over the years. But this is one good example that other companies should follow: promoting from within.

It's not a great look to bring in an outsider, hired-gun CEO to the tune of a nearly $30 million pay package, only for that person to ruthlessly slash jobs.

But it seems to be a popular choice for big companies these days: Tap a leader who will blindly optimize for profit and shareholder value and/or strip the company for parts. Capitalism, baby!

Nike the corporation will probably be more-or-less fine either way. It's the passionate sneakerheads and the dedicated employees who get hurt — the people who make the brand what it is.

Sean Lemson, a leadership development coach and author, wrote on LinkedIn:

"It was very hard for me to watch (and be swept up in) the way John and other leaders from Silicon Valley just completely devalued the nike-blooded employees who were let go over the years."

Heather Smit, a marketing and creative operations professional at Nike, was extremely candid in her own post:

"Though I survived and even thrived amidst the 2 massive reorganizations John led, they have left us with bumps, bruises, and even scars. We lost a lot. We’ve been through hell and back in the last 5 years under John’s leadership. We’re still here because we LOVE this company and we know we deserve better. The consumer deserves better. Elliott doesn’t have an easy job ahead of him, but he’s got about 80,000 hopeful and energized employees behind him, ready to go."

It's not often you find yourself rooting for a millionaire CEO, but Elliott Hill's story is just so dang inspiring we might not have a choice.

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Career coach shares the 8 key questions you should be asking to nail a job interview

"Asking good questions doesn't need to be complicated."

@emrezkalla/TikTok

Seven questions to help you seal the deal and stay sane.

Job interviews can be stressful, not to mention disempowering. But it’s important to remember that just as much as the employer is trying to determine whether or not you’re a right fit for the company, you are also sussing out if the company is the right fit for your own goals.

Sometimes we really are in a tight spot, where getting some income, any income, is priority #1. But more often than not, we need to think of the big picture when it comes to where we work, lest we get stuck in a situation that doesn’t actually align with our values. Which is why it’s important to spot out any red flags as soon as possible (i.e., the interview).

Luckily, a career coach has made it easier than ever to handle the dreaded “do you have any questions for us?” part of a job interview to not only stand out among other potential employees, but come out feeling confident about who they might be working for.

In a one-minute clip posted on her TikTok account @emrezkalla, Emily Rezkalla of Em Rez Consulting, pretended to be a job candidate at that part of the interview.

In this scenario, Rezkalla’s character wowed her potential employer by asking 8 very smart, very specific questions, rather than simply saying “no.” You can give them a quick look below.

Questions to ask at the end of your job interview

  • What’s an example of how you’d like the star candidate to contribute to the company beyond the job responsibilities?
  • What’s the biggest challenge the team is facing right now that you want the person in this role to resolve?
  • What are some examples of professional development opportunities that you’ve specifically benefited from at the company?
  • What kind of support does the company provide for employees looking to take on leadership roles?”
  • How would you describe the kinds of relationships the person in this role would have with their team and leadership?
  • Based on your experience, how would you describe the people at the company in three words?
  • What’s an example of how the company handles high volume/stress work days for their employees?
  • What’s a project you recently worked on that has gotten you the most excited so far?


@emrezkalla Asking good questions doesn’t need to be complicated #careeradvice #interviewprep #corporate #interviewtips #jobsearch #edutokcareer #careercoach ♬ original sound - Em The Career Pivot Mentor


Of course, this is just a basic template. Rezkalla encourages applicants to add their own flair, and to be specific in their questions. After all, “vague questions will get you vague answers.” She also notes that you probably want to only ask 1-3 of these, not all 8 in one sitting.

Rezkalla’s video got a lot of traction and praise online.

“I used your questions and they were blown away! I don’t know if I’ll get the job but at least I made it memorable,” one person wrote.

Another echoed, “I used the first one in my big interview today and they loved it.”

Many viewers were inspired to share their own tips.

“My favorite: what is the biggest challenge you face as a manager?” one person wote.

Another added, “I ask questions during the interview so by the end, I don’t have any. But I always ask about the [remaining] hiring process as in wait time for response. Then I go home and send a thank you email.”

Another person shared, “ I type out my questions beforehand and pull them out at the end. That impresses them”

“The question that has gotten most of the candidates I’ve worked with callback: is there anything on my resume or answers during this interview I can clarify for you?” suggested another.

Whether or not you get the job—and whether or not the job will turn out to be what you need in the long run—are not fully in your control. But having some of these hard hitting questions in your back pocket is just one way of reclaiming a bit of your power back, even when trying to sell yourself.

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