Neither houses nor cars, but Generation Z becomes the richest in history and this is why

Right now, Generation Z-ers are struggling. With the high cost of living and the unstable job market has them strapped for cash, a recent report from Bank of America provides hope, predicting that Gen Z will in fact be the wealthiest generation in history within the next ten years.

Gen Z: Big spenders, poor savers, future financial powerhouse

While Gen Z is sinking into deeper and deeper debt with the costs of education and housing, and high unemployment, they do tend to splurge on things for themselves and their pets - the pets they chose to have over having children, which tend to cost a great deal more.

Despite all this, Gen Z is on track to become the wealthiest generation by 2035. The Bank of America report predicts the generation, which should make up 30% of the global economy in the next decade, will amass over $74 trillion in income by 2040 with their economic dominance growing. According to the report, Gen Z amassed $9 trillion in income two years ago and will have already amassed $36 trillion by 2030.

The report lists two major reasons for this: Wage growth, and the “Great Wealth Transfer”.

Wage growth

The Gen Zers have only recently entered the full-time job market, which has led to higher wages.

The Great Wealth Transfer

The report lists the Great Wealth Transfer as the biggest factor in the coming financial boost. About $84 trillion is expected to be passed down from seniors and baby boomers to Gen X, millennials, and Gen Z by 2045, with Gen Z making up 38% of the anticipated inheritance.

Projected spending and economic impact

Gen Z already has higher global spending than the other generations ($2.7 trillion in 2024) and it’s expected to reach $12.6 trillion by 2030, largely driven by discretionary spending and higher household expenditure.

Businesses have already caught on, focusing on Gen Z’s interests like luxury, beauty, tech, wellness, pets, and e-commerce. Once the generation accumulates wealth, they are expected to reshape the economy and “redefine” consumer behavior.

Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all. Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.