America’s youngest adults will take risks for a better life at a far higher rate than older generations, a new study finds.
Almost half of Gen Z (48 percent) say they’d risk changing their job, starting a business or moving careers for a shot at more “success or happiness,” according to a Northwestern Mutual survey of 4,375 U.S. adults published Tuesday.
"Younger adults are coming of age in an environment where change is constant and opportunities arise quickly," chief field officer John Roberts said.
Gen Z’s willingness to risk job stability for fulfillment coincides with another finding from the survey - they’re more likely than any other generation to be the first to embrace “new and emerging” investment trends.
Some 15 percent say they’re first to act on those trends, which aren’t specified, while 12 percent of millennials say they are.
Baby boomers and the Silent Generation take a more conservative approach to investing, with less than 1 percent claiming to act on a trend first and 34 percent saying they avoid new investing trends.
Yet while Gen Z is more comfortable with risk, they have a knack for balance. Some 41 percent characterize themselves as a “cautious strategist” investor, a trait that reflects the generation’s overall conservative approach to money.
When U.S. gas prices and inflation soared to multi-year highs in recent months, Gen Z responded with strategic cutbacks.
They’ve zeroed in on social spending - 62 percent say they avoid weekend plans to save money and sidestep any spending regret, according to a July survey from polling firm Harris Poll.
Money is an important part of choosing a mate, too. Some 78 percent of Gen Z say “financial responsibility is an important attribute when choosing a significant other,” Bank of America noted.
The generation’s relatively balanced approach to money is linked to a desire for a holistic approach to work and life, New York City-based therapist Matt Lundquist told Reuters in July.
“I spend my time with these folks hearing an awful lot of criticism of ‘work is everything’ and fulfillment mindset,” Lundquist said.
A wise approach to money acknowledges the importance of sound financial habits, he explained.
“There's a difference between recognizing that money is not the most important thing in the world and organizing a life where earning and wealth don't overtake other priorities, like joy and connections and relationships,” he said.
“The path towards that, in my view, is through understanding money and through making informed choices about money.”
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