Survey reveals Gen Z’s evolving view of adulthood amid rising financial concerns

Adulthood brings responsibilities such as building relationships, establishing a career, embracing maturity, and taking care of one’s family. In most countries, 18 years is the standard age for someone to be considered an adult capable of making independent decisions. However, a recent survey suggests that “adulting” may be a delayed experience, especially for Gen Zers, who find it increasingly challenging. According to Life Happens’ latest study, there’s a growing conversation across generations about the "fluid" definition of the adult phase.

The survey divided 2,000 Americans aged 18 and older evenly by generation, with 500 each representing Gen Z, Millennials, Gen X, and Baby Boomers. Results showed that nearly 71% agreed that becoming an adult in today’s world is significantly harder than it was three decades ago. Inflation emerged as a key factor, with around 72% stating that the cost of living is higher than ever. Notably, respondents indicated that 27 is the age when individuals start feeling anxious or begin taking their future seriously.

Furthermore, the definition of "adulting" is becoming increasingly fluid, according to the research. The top two indicators of adulthood were finance-related: about 56% of respondents associated adulthood with the ability to pay their own bills and 45% with being financially independent. Another 46% reported "feeling" like an adult once they moved out of their parents' home. The survey highlighted that most individuals who take their finances seriously are aged 28 or older, aligning closely with the age when people tend to feel like adults—around age 27.

However, 76% of Gen X and Baby Boomers admitted that they wished they had taken their finances more seriously in their 20s. Many Gen Zers reached a consensus with other generations on the top three pieces of financial advice: 64% believe starting early in their careers is beneficial, 46% prioritize creating a budget and 41% emphasize building credit. The study also showed that Gen Z is ahead of other generations in managing finances from a young age.

Younger generations are learning to pay their bills, obtain credit cards, budget and open savings accounts by age 22. However, about half have yet to form a comprehensive retirement plan by setting aside a portion of their earnings for investment. Many also struggle to fully embrace adulthood for various reasons: 39% of respondents find having children challenging, while 47% see purchasing a house or apartment as difficult. Additionally, over half (56%) report that their financial responsibilities exceed their ability to manage them.

Due to the rising cost of living, a significant portion of Americans surveyed views financial stability as a utopian concept. Around 60% hope to achieve an economically comfortable life by age 46, freeing themselves from budget worries. In contrast, 4 in 10 respondents believe achieving financial stability is impossible within their lifetime. Another important insight from the study is that understanding the value of working with a financial expert is quite limited. Nonetheless, across generations, people agreed that they would consider working with a financial professional, on average, by age 30. However, a majority (around 56%) of those surveyed reported they had never done so. The study also highlighted a positive trend, with each generation beginning to contribute early to a retirement plan, allowing for more time for savings and investments, including exploring options like life insurance.

Experts have previously indicated that a person does not achieve full "adult" status until they are in their 30s. “What we're really saying is that to have a definition of when you move from childhood to adulthood looks increasingly absurd. It's a much more nuanced transition that takes place over three decades,” said Professor Peter Jones from Cambridge University in a 2019 interview with the BBC.