Generation Z (Generation Z): Definition, Years of Birth, and Demographics (2023)

What is Generation Z (Gen Z)?

Gen Z is the label that many demographic researchers give to the current generation of young people. According to the Pew Research Center, Generation Z is made up of people born between 1997 and 2012. The oldest of this generation are reaching the age of 25, and many are now leaving college, getting married, and starting a family. They follow on the heels ofmillennia(born between 1981 and 1996). As a result of the COVID-19 pandemic, members of Generation Z face a more uncertain future than many previous generations.

key acquisitions

  • Generation Z (Gen Z) refers to the generation of Americans born between 1997 and 2012.
  • The oldest members of Generation Z begin their post-education years with new careers and possibly families; the minors are 10.
  • Although Gen Z seniors have firm plans for retirement, they haven't gotten very far to invest their savings in it.

Understanding Generation Z

Generation Z is the most racially and ethnically diverse generation of Americans to date. According to the Pew Research Center, non-Hispanic whites in Generation Z have a very small majority of 52%. Hispanics make up 25% of Gen Z, while Black Gen Z makes up 14% and 6% are Asian. The remaining 5% are another race or two or more races. The majority of Gen Z members are not immigrants: only 6% were born outside of the United States.

Although previous generations have embraced social issues, Generation Z is more social than previous generations. According to the Annie E. Casey Foundation, Gen Zers focus on seven key social issues: healthcare, mental health, higher education, economic security, civic engagement, racial justice, and the environment.

Lots of Gen Zerssoon they will no longer be able to stay on their parents' health insurance, and are concerned about how to pay for their own coverage. This problem is compounded by the increase in the number of Gen Zers seeking mental health treatment: 37%, according to the American Psychological Association.

Gen Zers also make education a priority. More than half (57%) of 18-21 year olds were enrolled in a two- or four-year college. Members of Generation Z are also more likely to finish high school.

Members of Generation Z are fighting in record numbers for social change, racial justice, and environmental protection. Some have raised their profile nationally, like X (formerly Emma) Gonzalez, a survivor of the 2018 Marjory Stoneman Douglas High School shooting who, along with other survivors, helped organize the March for Our Lives movement.According to the Pew Research Center, about 70% of Gen Z believe that the government needs to take a more active stance to solve problems.

Generation Z vs Millennials, Generation X and Baby Boomers

The 21st Annual Transamerica Workers Retirement Survey was consideredHow Gen Z sees their financesand pension prospects compared tomillennia,Generation X, Ybaby boomers. Key findings include:

  • Nearly six in 10 Gen Z workers (59%) said their employment situation has been negatively affected, mainly due to reduced work a result of the pandemic, which is significantly higher than Millennials (51%), Gen Xers (39%), and Baby Boomers (30%).
  • Baby Boomers, Gen Xers, and Millennials are significantly more likely to cite saving for retirement as a financial priority (75%, 65%, 53%, and 33%, respectively). But of course many are closer to it, or already there for many boomers.
  • Accumulation of emergency savings takes precedencefor 50% of Generation X, 46% of Millennials, 42% of Generation Z and 36% of Baby Boomers.


The percentage of Gen Zers who consider saving for retirement a financial priority.

The financial situation of Generation Z

According to the results of the Transamerica survey, Generation Z currently has little to no financial security. Gen Z workers are more likely than previous generations to say they are just getting by to earn a living (50%) and pay off student loans (35%). Plus, they have just $2,000 in emergency savings, while 30% have dipped into their retirement accounts. Additionally, about a third of Gen Zers have reduced their daily expenses due to pandemic-related financial strains.

retirement forecast

While the Gen Zers are currently on shaky ground financially, they have solid plans for retirement. In fact, 70% save for retirement.employer sponsored plans, as a401 (k)or a similar plan and/or outside of work according to the Transamerica survey. Gen Zers also started saving for retirement at age 19, long before millennials (25 years).Generation X(30) y baby boomers (35).

According to the survey, Gen Z estimates that they will need $500,000 when they retire to feel financially secure. Yet only 32% have a backup plan in case retirement hits unexpectedly.

Besides theInvestopedia Financial Education Survey 2022found that younger generations are incorporating cryptocurrency into their retirement plans, so understanding cryptocurrency can be extremely important for children.

Financial planning for Gen Z

Since Gen Zers are just entering the workforce, many don't have a lot of experience with planning. You may be familiar with employer-sponsored plans, but many don't know much about investment products outside of work, such as bank accounts (savings andmoney market),Individual Retirement Accounts (IRA), YCertificates of Deposit (CD). In fact, according to the Transamerica survey, only 9% have a “very good” understanding ofasset allocationPrinciples relating to retirement provision.

If you belong to Generation Z, follow these four steps to pave the way to a strong financial future.

500.000 $

The amount Gen Z members need to save for a financially secure retirement.

1. Get a complete financial plan

Don't wait until you are well into your career to seek financial advice for your financial future. If you have a steady job and are already saving for retirement through an employer-sponsored plan, now is the time to seek advice on how to maximize your savings. Learn morebudget-haygreat apps for that– and working to build oneemergency fundto help you through tough times and prevent you from ending up in credit card debt if, for example, your car breaks down.

2. Manage your debt

Even for Gen Zers in their 25s (meaning the older ones), buying a home may still be a few years away.But it's not too early to get a handle on your finances, which will help you get a mortgage when the time comes. Good credit and low debt will help both your current life (hiring managers sometimes check this) and your future ability to get anything from a car loan to a mortgage. alternate solutionControl your student debtand keep credit card debt to a minimum. LearnDebt to Income Ratio (DTI)— a number that will ultimately help you get a mortgage (mortgage lenders want your DTI to be 43% or less to qualify for a pro chase home loan), but one that can help you take control of yours right now to obtaining financing.

Paying off credit cards can give your DTI a big boost, as can paying off loans in installments, like a car loan or student loans. If you are having trouble paying your debt: acertified credit counselorcan help you develop an action plan.

3. Get a head start on college expenses

As tuition rates continue to rise, it's important to look for themWays to pay for collegethat will not drown you in debt. Although four-year colleges are considered the primary path to earning a college degree, there are other, more affordable options that may lower college costs. Taking courses online, attending a community college or community college, or opting for a technical school, offer pathways to graduate education that cost less than traditional four-year schools, or make the first part of a college education be cheaper.

Taking time off work full time and saving for tuition is another way to pay for college. You can also request thefederal work studyProgram that allows you to work part-time while attending school, either part-time or full-time.

Finding scholarships and scholarships is another way to pay for college. Don't rely solely on your school's tax office to find potential scholarships or grants. There are several search engines available to help you find scholarships you may qualify for to help pay for college tuition and costs. These include Fastweb, Mometrix,, Unigo, and Scholly.

4. Get a financial picture of parents

As you get older and begin to take control of your own finances, talk to your parents about building a secure financial foundation. They can help answer any questions you may have about building your savings, managing your credit card use, establishing good credit, and understanding employer-sponsored retirement accounts and benefits.

If your parents don't have a strong financial history, find a local banker or financial advisor to discuss your financial problems and goals. And expand your financial knowledgelearn independently.

Who is Generation Z (Gen Z)?

People born between 1997 and 2012 are considered part of Generation Z. This means that the oldest will turn a quarter of a century in 2022.

Are members of Generation Z financially secure in general?

Not yet. 50% earn enough to cover basic living expenses, while 35% have to pay off a student loan. A third of them say they have suffered financially due to the COVID-19 pandemic.

Are Gen Zers saving for retirement?

Gen Zers are the most retirement-conscious generation in history. A staggering 70% have some type of retirement plan, either employer-sponsored or self-administered. Gen Zers began saving for their retirement at the age of 19. Compare that to Millennials (25 years old), Gen Xers (30 years old), and Baby Boomers (35 years old). Members of Generation Z believe they need to save $500,000 for retirement, which might turn out to be an underestimate, as financial experts tend to think so.Set the number up to $2 million.

The final result

The oldest members of Generation Z are starting to move into their post-education years, which brings with it a host of new financial considerations.This also includes the retirement forecast., find ways to finance your college education, and set the stage for a strong financial future, including buying a home. A solid financial plan can help you reach your financial goals and provide financial security in old age.


Generation Z (Generation Z): Definition, Years of Birth, and Demographics? ›

Meet Generation Z. Born between 1997 and 2012, they are ​“racially and ethnically diverse, progressive and pro-government” according to Pew Research Center.

What is the demographic of Gen Z? ›

The Merriam-Webster Online Dictionary defines Generation Z as "the generation of people born in the late 1990s and early 2000s." The Collins Dictionary define Generation Z as "members of the generation of people born between the mid-1990s and mid-2010s who are seen as confident users of new technology".

What defines the Gen Z generation? ›

What Is the Generation Z Age Range? Generational cohorts are defined by birth years rather than age, so the age range of Gen Z will continue to shift over time. Most sources agree that Gen Z begins around 1997 and ends around 2010, so as of 2020, the Generation Z age range is roughly between 10 and 23 years old.

What is the definition of Gen Z age? ›

Aged between eight and 23 years old, generation Z or the post-millennial generation will take the lead in a few decades.

What are the characteristics of Generation Z? ›

Characteristics of Generation Z
  • They're money-driven and ambitious.
  • They love to travel.
  • They're prone to anxiety.
  • They're known to set boundaries.
  • They're avid gamers.
  • They're nostalgic.
  • They use social media in a unique way.
Feb 15, 2023

What are Generation Z interests? ›

Art and Music / Playing an instrument are top hobbies for Gen Z and Millennials that are included in both their top five rankings.

How does Gen Z differ from millennials? ›

Generation Z was born between 1995 and 2012, whereas Millennials were born between 1981 and 1996. In 2019 the oldest Millennials turned 40, which means that they have been part of adult life for a while.

How long will Gen Z live? ›

The average life expectancy of baby boomers, Gen X, Millennials, and Gen Z are different. Compared to the 70-year life expectancy of baby boomers and the 85-year life expectancy of Gen X, Gen Z is predicted to have a life expectancy of over 100 years.

What are 3 things about Gen Z? ›

Generation Z considers itself more accepting and open-minded than any generation before it. Almost half of Gen Zs are minorities, compared to 22% of Baby Boomers, and the majority of Gen Z supports social movements such as Black Lives Matter, transgender rights, and climate change.

How do you know if you are a Gen Z? ›

If you were born between 1997 and 2012, you are a member of Generation Z. This year the oldest of the Gen Zers will hit 26 years old. Many Gen Zers are in college or have already graduated. Some have even started families or are years into their careers.

What issues are Gen Z most passionate about? ›

TL;DR. Of the top five social causes / issues Gen Z and Millennials are passionate about, three have remained the same: mental health help / care, racism, and abortion / birth control.

What is the most popular activity for Gen Z? ›

Most Gen Zers also use their smartphones for video streaming, music, and podcasts. The US Media Consumption Report from 2021 showed that 60% of Gen Zers stream music daily and 37% listen to podcasts weekly. The average Gen Z individual spends 3.4 hours per day streaming videos.

Where are Gen Z moving to? ›

Top Cities Where Gen Z Is Moving
CityMoved In1
1Washington, D.C.22,471
2Columbia, SC12,228
3Boston, MA17,237
4Atlanta, GA10,367
6 more rows
Mar 29, 2023

How is Gen Alpha different from Gen Z? ›

Gen Alpha, born between 2010 and 2025, are the first generation born completely within the 21st century. And while Gen Z were our first true digital natives, Gen Alpha will mark a new digital age, given how quickly and exponentially technology advances.

What are the main differences between Gen Y and Gen Z? ›

Naturally they differ in age. The Gen Y's are born between 1981-1995 and are currently aged between 24-38. You might know them as Millennials, the Generation Why, or the Boomerang Generation. On the other hand, Gen Z are born between 1996-2015 and are currently aged between 4-23.

At what age will Gen Z retire? ›

The youngest members of the workforce aren't planning to stay as long as previous generations stayed in the working world. Gen Zers, defined as Americans between 18 and 25, aim to retire by 59 on average, according to Northwestern Mutual's 2022 Planning and Progress study.

Will Gen Z live with their parents? ›

A separate study found that nearly 30% of adult Gen Zers are still living at home with their parents, held back from moving out on their own by the rising cost of living.

At what age does Gen Z end? ›

Gen Z: Gen Z is the newest generation, born between 1997 and 2012. They are currently between 9 and 24 years old (nearly 68 million in the U.S.) Gen A: Generation Alpha starts with children born in 2012 and will continue at least through 2025, maybe later (approximately 48 million people in the U.S.)

What is Gen Z vs Millennial? ›

Generation Z was born between 1995 and 2012, whereas Millennials were born between 1981 and 1996. In 2019 the oldest Millennials turned 40, which means that they have been part of adult life for a while.

What groups are such as Gen Z? ›

What are the other generation age ranges?
  • Lost Generation — 1883-1900.
  • Greatest Generation — 1901-1927.
  • Silent Generation — 1928-1945.
  • Baby Boomers — 1946-1964.
  • Generation X — 1965 - 1980.
  • Millennials — 1981-1996.
  • Generation Z — 1997-2012.
  • Generation Alpha — 2013 - present.
Apr 25, 2023

What is the demographic of Millennials? ›

Millennials were the largest generation group in the U.S. in 2022, with an estimated population of 72.24 million. Born between 1981 and 1996, Millennials recently surpassed Baby Boomers as the biggest group, and they will continue to be a major part of the population for many years.

What is the difference between Gen Z and Gen Alpha? ›

Generation Z (also known as the iGeneration, Zoomers, or Centennials) refers to those with birth years between 1995 and 2010. Generation Alpha encompasses those born between 2010 and 2025. Gen Z is the first digital native generation, while Gen Alpha is the first generation to grow up in an entirely digital world.

Is Gen Y and Gen Z the same? ›

Naturally they differ in age. The Gen Y's are born between 1981-1995 and are currently aged between 24-38. You might know them as Millennials, the Generation Why, or the Boomerang Generation. On the other hand, Gen Z are born between 1996-2015 and are currently aged between 4-23.

What is the current generation? ›

Generation Alpha (Gen Alpha for short) is the demographic cohort succeeding Generation Z. Researchers and popular media use the early 2010s as starting birth years and the early-to-mid 2020s as ending birth years (see Date and age range definitions).

What is the difference between Gen Z and boomers? ›

Baby boomers are anyone born from 1946 to 1964. Millennials are anyone born from 1981 to 1996. Generation Z is anyone born from 1997 to 2012.

How long is Generation Z? ›

Generation Z (aka Gen Z, iGen, or centennials), refers to the generation that was born between 1997-2012, following millennials. This generation has been raised on the internet and social media, with some of the oldest finishing college by 2020 and entering the workforce.

How old are Gen Z in 2023? ›

How old are Gen Z this year? The oldest in the Gen Z cohort will be 26 in 2023, while the youngest will turn 11.

What are 1970 babies called? ›

Baby Boomers (circa 1946 to 1964) Generation X (circa 1965 to 1980) Millennial Generation (circa 1981 to 1996) Gen Z (post-Millennial) (circa 1997 to 2012)

Why are they called the Silent Generation? ›

The term “Silent Generation” was first documented in a 1951 Time magazine article, which claimed that the most startling fact about this generation was its silence: “By comparison with the Flaming Youth of their fathers and mothers, today's younger generation is a still, small flame.” The generation's “silent” behavior ...

What is the greatest generation personality? ›

The Greatest Generation commonly refers to those Americans who were born in the 1900s through the 1920s. The Greatest Generation members all lived through the Great Depression and many of them fought in World War II. These individuals have often been described as driven, patriotic, and team-players.


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