Here's the average salary each generation says it needs to feel "financially healthy." Gen Z demands a whopping $171,000/year – what salary do you need to feel secure? (2024)

FAQs

What average salary each generation says they need to feel financially healthy? ›

Here's what each generation, on average, said it needed to earn annually, as well as the net worth required, to achieve happiness: Gen Z: $128,000, with a net worth of $487,711. Millennials: $525,000, with a net worth of $1,699,571. Gen X: $130,000, with a net worth of $1,213,759.

On average, Gen Z defines a high starting salary as $82k.

Gen Z grads are in tune with realistic starting salaries by industry. While most say a “high” starting salary would make them more likely to apply to a job, two-thirds of respondents' idea of “high” is still under $100k.

The current median income, half earn more and half earn less, for a Gen Z worker nationwide is around $37,300 according to an analysis by GoBankingRates.

Is it surprising compensation became the driving factor for accepting a job offer? From 2020 onwards, this is the trend my research followed. In our 2021 report created from a survey on Gen Z candidates, we found that compensation continued to outweigh other factors like company culture and professional development.

So perhaps it isn't surprising that more than 40 per cent of both generations report having money dysmorphia and 48 per cent of Gen Z say they feel behind financially and 59 per cent of millennials feel the same.

Despite their growing presence in the workforce, a recent WalletHub survey found that more than one-quarter of Gen Z admits to lacking confidence in their financial knowledge, making them the least financially confident generation. Ultimately, this shows in their spending and investing habits.

Gen Z employees are very pragmatic and don't count on others to succeed. 76% of them believe their career path is their responsibility, according to a Monster multigenerational survey. The good thing is, if you meet their needs, they will do everything to develop their skills, climb the professional ladder and thrive.

Gen Z workplace expectations

96% of Gen Z employees say it's important that they feel valued, included and empowered at work. 80% want a job that allows them to explore and develop new skill sets, rather than focus on one skill.

In-person work with plenty of flexibility

And almost 90% say flexibility is an important factor when considering a job. “I would much rather be around people, but have the option to be virtual if I would like to switch it up. The ability to be flexible and avoid stagnation is essential to me.”

Today, middle class describes a broad economic group making up roughly half of the U.S. population. Typically, it has consisted of those in white-collar jobs, small businesses or skilled trades. According to the Pew Research Center, the middle class includes Americans making between $38,133 and $114,400 in 2023.

Is $75000 middle class? ›

One commonly used definition from the Pew Research Center sets a middle-class income between two-thirds and twice the national median income, or $67,819 to $203,458 for a family of four in 2022. Most Americans consider the lower end of that range, $75,000 and $100,000, to be middle class, according to the Post poll.

Instead, “zoomers” value peace of mind as well as flexibility and stability of employment. For this reason, Generation Z is sometimes considered to be an “entitled generation”. It is said that representatives of this generation do not want to work and that they only care about money.

According to recent data from a 2023 Pew Research Centre survey, Gen Z is more financially independent at a younger age than prior generations. While still in school, a sizeable proportion of Gen Zers work part-time, freelance, or have side hustles. This independence has prompted them to seek more financial control.

One in five employers reported that recent college graduates come underprepared. Issues with making eye contact, dressing for the job, and asking for unrealistic salaries topped the list of complaints. Nearly 40% of respondents said they were more likely to hire an older candidate due to gen Z's behavior in interviews.

found that the majority of Americans (69%) believe that financial stability is achievable for those earning less than $100,000, with 25% believing they would only need less than $50,000 in annual income to be on firm financial footing. See: How Much Household Income is Considered Upper Middle Class for 2023?

Gen Zers are having a harder time making ends meet, let alone building wealth. Roughly 38% of Generation Z adults and millennials believe they face more difficulty feeling financially secure than their parents did at the same age, largely due to the economy, according to a recent Bankrate report.

Generation Z adults—individuals who are between 18 and 25 years old—prove to be more financially sophisticated than any previous generation was at their age, according to The 2022 Investopedia Financial Literacy Survey.