When it comes to money habits, not all age generations think and act alike. Millennials are aware of the 2008 financial crisis, and rising living costs tend to prompt them to manage their finances with caution and long-term planning in mind.
In contrast, Gen Z has grown up in the digital revolution era, where they tend to make financial decisions available online. Not all the advice available on the internet is genuine; most of it sounds good but is misleading. With digital help, investment and spending have become easy. In the UK, for example, 76% of Gen Z and 71% of Millennials opened or started using a new savings or investment product in the past year.
While there is a generation gap, their attitude towards saving, spending, investing and seeking financial advice differs. Whether you are a millennial trying to get ahead or a Gen Z just starting, understanding the key points for making a smart financial decision is important.
1. Mindset & Money Values: What Drives Each Generation?
Millennials have witnessed a financial crisis and a pandemic and already suffered student debt, job insecurity and high living costs, shaping them to be more cautious and delayed approach to wealth building. Security, stability and value-for-money are their top priorities.
Gen Z have entered adulthood amid the pandemic and global political and cost-of-living crisis. They have grown up digitally connected. This has made me have an entrepreneurial mindset when it comes to money. They seek multiple income sources, indulging in freelancing and side hustles and value freedom over financial tradition.
Millennials often seek long-term financial stability, while Gen Z looks for immediate flexibility and financial independence.
2. Saving & Spending Habits: From Coffee to Crypto
Millennials are known for delaying major or luxury purchases like a home, cars, and often prioritising experiences over possessions and tend to favour structured saving using mobile apps.
Gen Z is even more digital-savvy but more cautious with spending than many assume. According to a 2024 UK survey, Gen Z are 27% more likely to track their spending weekly than Millennials.
Gen Z is also digital-savvy but is more cautious with spending. A 2024 release from NatWest Group shows that 69% of UK Gen Z (ages 18‑24) say they create a budget for their finances. They often use “payday routines,” auto-saving apps (like Plum), and spend less on credit.
Both generations are digital-native, but Gen Z may be more disciplined savers, perhaps because they’ve seen the financial challenges Millennials faced.
3. Investing: Risk Tolerance and Platforms of Choice
Most millennials were early adopters of digital investing, but tend to favour diversified portfolios, index funds, stocks & shares ISAs, or robo-advisors like Nutmeg or Moneybox.
Gen Z, however, are more comfortable with volatility. Many jumped into crypto, meme stocks, or ETFs through low-barrier apps like Trading212, Freetrade, or eToro. While this shows initiative, it also comes with risks. Many haven’t experienced a real bear market yet.
A recent FCA report found that 45% of Gen Z investors choose investments based on social media tips, compared to just 18% of Millennials.
4. Where They Get Financial Advice: DIY vs Guided
Millennials increasingly seek professional or hybrid financial advice, especially as they reach their 30s/40s. Many use digital financial planners or mix DIY investing with professional advice, especially around pensions and mortgages. They always tend to be extra careful.
Gen Z often turn to social media platforms like TikTok, Reddit, YouTube, and influencers for quick financial advice. The upside? They’re proactive. The downside? The quality of guidance varies, and bad advice can be costly.
Example: A TikTok trend encouraged Gen Z users to “ditch pensions for crypto.” That may be attention-grabbing, but not always realistic.
5. Ethics, ESG & Financial Values
Facts show both generations care about values, but Gen Z takes it further.
Millennials helped popularise ESG (Environmental, Social, Governance) investing, but convenience and returns still tend to lead decisions.
Gen Z, however, is more willing to put their money where their values are, even if it means sacrificing returns.
6. What You Can Learn No Matter Your Generation
Whether you’re just getting started or building wealth steadily, here are a few cross-generational lessons:
- Start early — compound interest is your friend.
- Track your spending regularly — not just your income.
- Don’t trust every financial “hack” online — fact-check before acting.
- Use tools that fit your lifestyle — whether that’s an app or an advisor.
- Balance values with returns — it’s possible to do both.
- Think long-term, even if your goals change.
The bottom line
Your age doesn’t define your financial potential — your habits do. It’s never too late to seek guidance from a financial advisor. Visit Invest N More now to book an appointment for consultation.
