A new survey from Policygenius confirms that when it comes to wealth accumulation and making financial decisions, Gen Z and Gen Y are taking a very different path from the generations that came before them.
Drawing from a survey of around 4,000 Americans, the 2024 Policygenius Financial Planning Survey reveals that millennials, defined as those ages 27 to 42, and Generation Z, those 18 to 26, are as likely to own cryptocurrency (21 percent) as they are to own real estate (20 percent).
This comes against a backdrop in which home affordability has plummeted to its lowest level since the Great Recession. Factors such as elevated interest rates, stagnant wages, and a thin housing supply have rendered homeownership a distant dream for many.
The Policygenius study found that across generations, baby boomers led the charge in amassing housing wealth, with 45 percent of those surveyed citing real estate as a component of their asset portfolio.
The survey also pointed to a shift in the current landscape, with younger Americans leaning toward alternative investments. Cryptocurrency and non-fungible tokens have emerged as preferred assets for millennials and Generation Z, showing a more speculative, go-for-broke investing approach compared to that of their older counterparts.
The study also pulled back the curtain on younger generations' use of financial "hacks" and social media for advice. Three-fifths (62 percent) of millennials and Generation Z have experimented with at least one financial "hack" popularized through social platforms. Gen Z participants were most likely to try the "no spend challenge" (21 percent), while 19 percent of millennials tried tactics like extreme couponing or "cash stuffing.”
The dependence on social media for financial guidance is markedly higher among younger Americans, with 8 percent of them turning to these platforms first for financial questions. That’s markedly different from Gen X and baby boomers, where only 2 percent would do the same.
The generational script gets flipped when it comes to financial advisors. According to the survey, 14 percent of Generation Z and 18 percent of millennials said they would consult a financial professional first, starkly lower than the 27 percent of Gen X and 39 percent of baby boomers who prioritize professional advice.
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