ANALYSIS REPORT

JUNE 2025

Gen Z: Financial Choices in a Changing World

In Brief

This report describes exploratory research into the behavior of Generation Z (born 1997–2010) as financial consumers and their methods of seeking information. Gen Z is confronted with financial challenges in a digitizing world. They grew up in a digital era, and their way of orienting and informing themselves is different from previous generations; for example, they are more sensitive to (digital) misinformation. The AFM encourages financial enterprises to investigate relevant angles, such as reaching this generation with products, services, and information, safeguarding customer interest in a competitive market, and the role of finfluencers in the lives of Gen Z.

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ANALYSIS REPORT

Table of Contents

• Summary 3
• Introduction 4
• 1. Characteristics and Context 5
  • 1.1 General Characteristics 5
  • 1.2 Growing Up in a Digital World 8
  • 1.3 Financial Development 9
  • 1.4 Mental Health and Financial Stress 10
• 2. Finances 12
  • 2.1 Financial Goals 12
  • 2.2 Financial Position 12
  • 2.3 Financial Products 17
• 3. Financial Information 19
  • 3.1 Source Usage and Content Preferences 19
  • 3.2 Assessment of Information and the Online (Choice) Environment 21
• 4. Conclusions and Recommendations 23
  • 4.1 Recommendations for the Financial Sector 23
• Conclusion 25
• Bibliography 26

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Summary

Generation Z (Gen Z), born between 1997 and 2010, is a generation in a transition phase from dependence to independence. Gen Z has a higher rate of HBO (higher professional education) or university degrees than previous generations, is performance-oriented, and sets higher demands on their work. Flexibility, appreciation, and work-life balance are important to them. Gen Z lives in a digital world: on average, they spend 6.5 hours per day on their smartphone, with more than half of that time on social media. This generation constantly shares what they think, feel, and do, and compares themselves to the online lives of others, which can lead to FOMO (Fear of Missing Out). Gen Z also appears to be less privacy-conscious than older generations, and their worldview is shaped by social media. Gen Z feels strongly attracted to content that appears authentic and sincere—even if the content is factually incorrect. This increases the risk that Gen Z is insufficiently able to distinguish correct information from disinformation. Gen Z reports more stress, depression, and burnout complaints than previous generations. Impulsive spending and online comparison contribute to increased stress levels. The constant stream of online temptations creates many challenges for young people, who are naturally more impulsive.

Almost half of Gen Zers strive for major savings goals such as a house, car, or trip, and Gen Z invests relatively frequently. The financial position of Gen Z varies greatly and is influenced by study costs, flexible labor contracts, and an increase in self-employed individuals (ZZP’ers). Young people benefited less from wage increases than older people, and many young people struggle to make ends meet, partly due to rising expenses and relatively fewer working hours. Impulsive (online) shopping behavior also plays a role here. Much borrowing and pay-later usage occurs, which increases the risk of payment problems. Many young people have no financial buffer and focus mainly on the short term, making it difficult to cover unexpected expenses. Compared to the general Dutch population, Gen Z is more likely to have payment problems again after a previous debt. Furthermore, the "unlucky generation" has significantly higher student debts than previous generations due to the student loan system, which further increases their financial vulnerability.

In the search for financial information, Gen Z seamlessly combines various channels and consults not only social media but also friends, family, and websites of product providers. TikTok, Instagram, and YouTube are the most used platforms—especially to search for information about products from online banks, investments, and crypto. Gen Z also comes into contact with financial information unsolicited via social media. The content on these channels matches Gen Z's preferences: short, attractive videos or photos with a personal story. Social media are designed to stimulate interaction, not to guarantee quality. Gen Z has difficulty assessing the reliability of financial information on these platforms. Additionally, barriers in the online choice environment are being lowered further. This, combined with Gen Z's preference for convenience, speed, and personalized recommendations, increases the likelihood of impulsive financial choices.

As a new generation, Gen Z is confronted with financial challenges and risks in a changing world. The AFM states that this is significantly different for Gen Z than for previous generations. The way Gen Z orients and informs itself is different from previous generations. In their online experience world, Gen Z is extra sensitive to the social context in which information circulates. The AFM encourages financial enterprises to investigate angles relevant to their services for Gen Z, such as reaching this generation with products, services, and information, safeguarding customer interest in a competitive market, and dealing with the role of finfluencers in the lives of Gen Z. Furthermore, the AFM distills the following recommendations for the financial sector: Recognize vulnerability, align with online behavior, but maintain the quality of information, and take Gen Z into account when designing the online choice environment. The AFM sees it as its task to ensure that the financial sector safeguards the customer interest of Gen Z. Therefore, the AFM is pleased to start a dialogue between financial enterprises, policymakers, and regulators with this publication, aiming to better support new generations in their entry into the financial markets.

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Introduction

This report focuses on the behavior and information-seeking methods of young people from Generation Z (born between 1997 and 2012) in relation to financial products and services. The impetus for this report is that young people have repeatedly emerged as a potentially vulnerable group in previous research. Think, for example, of payment problems, (too) risky investing, and financial stress. Generation Z (hereinafter: Gen Z) are the young people of today. These young people distinguish themselves from previous young generations because they grow up in a digital environment where information continuously reaches them in diverse ways. Since an increasing number of them are entering the financial markets, a better understanding of this generation and the circumstances under which they make these choices is needed.

The goal of this publication is to start a dialogue between financial enterprises, policymakers, and regulators on how Gen Z can be better supported in their entry into the financial markets and how systems, products, and communication can be designed in such a way that Gen Z has the space to make sound financial choices. In this report, we describe the (financial) challenges of Gen Z and the way they orient themselves with information (sources) about financial products and services. Here, we base ourselves on insights from existing literature, using as many sources as possible (both scientific and non-scientific) with a view to starting the dialogue.

Research has not yet been conducted on all financially related topics. To supplement this, research agency Kantar, commissioned by the AFM, conducted survey research in early 2025 among a representative panel of adult Gen Zers (Gen Z was between 14 and 28 years old in 2025). Specifically, they investigated which financial products Gen Z owns, through which channels they orient themselves regarding these products, and how the reliability of this information (sources) is assessed by Gen Z.

Chapter 1 provides a description of the characteristics of Gen Z and the context in which they grow up. Chapter 2 describes the financial position and the use of financial products by Gen Z. Chapter 3 goes deeper into the handling of financial information, information channels, and sources. Chapter 4 concludes with conclusions and recommendations.

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1. Characteristics and Context

Gen Z are people born between 1997 and 2010. They come in the generational sequence after the Millennials (1981-1996) and before Gen Alpha (2010-2025). In 2023, Gen Z made up approximately 18% of the Dutch population, which amounts to 3.2 million people (CBS, 2023).

When describing the characteristics of Gen Z, it is important to distinguish between age effects and generation effects. This clarifies which insights are attributable specifically to Gen Z and which are attributable to young people in general. Some characteristics belong to the developmental phase of young people in general, for example, impulsivity. These are age effects. Other characteristics apply specifically to this generation, for example, the heavy use of social media. These are generation effects. In this report, "Gen Z" is used when referring to generation effects or a combination of the two effects, such as the tendency toward impulse purchases, which mostly take place online. When an age effect is present, the term "young people" is used. This report describes as many shared characteristics, behavior, and motivations of Gen Z as possible. This inherently brings generalizations with it. Therefore, it is good to realize that differences exist within every generation and that the mentioned insights about Gen Z are not always attributable to individuals. Individual behavior is always context-dependent and influenced by an interplay of various factors.

1.1 General Characteristics

Of the Gen Zers who were between 18 and 28 years old in 2025, almost half (46%) live in the parental home. Additionally, almost a quarter (23%) rents a home, 10% rents a room, and about 16% owns a home, as shown in Figure 1. About a third of the surveyed Gen Zers (30%) are students, 10% are school students, and 8% are taking a gap year. Two out of five (40%) have been working for more than 3 years, almost a quarter (24%) have just started working. About 5% are looking for work or are unemployed (Kantar, 2025). Gen Z is thus in a transition phase from the parental home to independence and from study or school to work.

• Parental home: 46%
• Rental home: 23%
• Owned home: 16%
• Room: 10%
• None of these: 5%

Figure 1. Housing Situation Gen Z

Gen Z has a higher rate of HBO or university degrees than previous generations (Fry & Parker, 2018; Motivaction, 2023). This number has steadily increased over the past 40 years: in 1981, one in nine people between the ages of 15 and 75 had an HBO or university degree. In 2021, this was one in three. The number of people with only basic education, a VMBO diploma, or an MBO level 1 diploma decreased in that same period from almost 58% to almost 26% (CBS, 2022).

Regarding work ethic, Gen Z is characterized as performance-oriented. An explanation for this performance orientation is that it follows a need for control in the financial and labor situation during times of social unrest. Furthermore, this generation shows itself to be flexible, direct, and transparent, and sets clear wishes regarding working conditions. Because Gen Z enters a tighter labor market than previous generations, this generation can demand more from their employer (Intermediair, 2022). They find appreciation for their own ideas important and expect mutual respect (Schroth, 2019). Additionally, Gen Z places great value on work-life balance and has an eye for diversity in the workplace (Deloitte, 2024). The need for flexibility is also reflected in the increased number of self-employed individuals (ZZP’ers) among Gen Z (KVK, 2024).

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1.2 Growing Up in a Digital World

Most of Gen Z cannot imagine a life without the internet. They grow up in a digital world where continuous connection with friends and exposure to news and trends is the norm. Gen Z spends an average of 6.5 hours per day on their smartphone, with 3.5 hours on social media. This is a difference from older generations, as shown in Figure 2 (University of Amsterdam, 2024; Ruigrok, 2024). Also, an increasing number of young people use two screens simultaneously (Yeşilyurt & Karaduman, 2024). The most used apps among young people are Snapchat, TikTok, Instagram, and YouTube (Newcom, 2024).

• Gen Z: 3.5 hours
• Millennials: 2.4 hours
• Generation X: 1.8 hours
• Baby Boomers: 1.7 hours

Figure 2. Number of hours per day on social media per generation

Young people use social media and online search engines as their primary news source instead of traditional media such as newspapers (CvdM, 2024). Gen Z is exposed more to social media than traditional, better verified media and therefore sees more disinformation. Additionally, Gen Z has difficulty identifying fake news, which can lead to them accepting it as truth more quickly (UVAToday, 2024). Also, on social media, the distinction between facts and opinions quickly becomes diffuse. Social media have both an informative function and a social function, whereby factual information acquires social meaning (Hassoun et al., 2023). Furthermore, Gen Z appears to be less privacy-conscious. This generation more often leaves location services on, uses Google Maps extensively, and shares locations with friends via Snapchat or Find My Friends (Moore, 2024). They are accustomed to various forms of convenience in a digital world with direct and fast access to information, services, and products (Youngworks, 2020). Social connection and convenience seem more important than privacy, which is a striking difference from older generations.

Social media are used for inspiration, trends, and news. Gen Z continuously shares what they do, think, and feel via social media. The constant exposure to the lives of others strengthens mutual comparison. This can lead to FOMO (Fear of Missing Out) - the fear of missing important or fun moments that others are experiencing - which creates social performance pressure (Chakrabarti, 2024). Young people generally place great value on the opinions of others. Gen Z is therefore extra sensitive to the social context online. Additionally, social media are important for identity development and creativity. This generation utilizes the freedom of social media to discover who they want to be. For example, they have multiple accounts where they express themselves differently to see what fits them (NJi, n.d.a). Gen Z grows up in an individualistic society and is shaped by a strong focus on personal development, independence, and the importance of the individual. Gen Z values a unique identity and self-expression, but paradoxically, this drive for individuality leads to more uniformity. Social media play a large role in this: young people feel pressure to follow the same aesthetics, pose in a certain way, and share similar texts. The freedom to profile oneself thus changes into an unwritten rule to stay within group norms (Van Noort & Van Den Berg, 2023).

Gen Z feels strongly attracted to sincere and original content and tunes out everything that feels forced, fake, or commercial (MWM2, n.d.). Authenticity and personal stories are important here, such as peers, brands, or influencers who dare to be themselves by having a clear own opinion, openness about their mental health, and showing vulnerability. What stands out is that Gen Z relies heavily on how a source or message "comes across."

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Gen Z: Financial Choices in a Changing World 9

ANALYSIS REPORT

The "authenticity" of the messenger can thus weigh heavier than the substantiation. Authenticity then becomes a style, but not a guarantee of factual truth. This carries the risk that disinformation is believed and shared more quickly. The assessment of content becomes a matter of feeling: when someone shares their experience with conviction and emotion, it quickly feels reliable, even if the content is factually incorrect. This increases the risk of trusting misleading information, especially on social media, where Gen Z spends much of their time.

Gen Z develops in an online environment where social trends and diverse opinions are continuously visible. In contrast to previous generations, who mainly encountered world news via traditional media such as television and newspapers, young people are now informed by social media and influencers. Themes such as climate change, social equality, discrimination, or gender equality are prominent in daily life (Youngworks, 2020). Gen Z is socially engaged, but opinions on these themes, like the broader (politically) polarized society, are also strongly divided within this generation. The variety of opinions and the rapid spread of information contribute to this. Additionally, algorithms or influencers can create online environments that only confirm existing beliefs. These are also called echo chambers (Mahmoudi et al., 2024). Although this is not a problem in itself, it can become problematic when there is no longer contact with those who think differently. Young people can be extra sensitive to this because they are in a phase of identity formation and are therefore strongly seeking confirmation (NJi, n.d.b). Social media platforms are therefore of great influence on the way Gen Z shapes their worldview.

1.3 Financial Development

From their 18th birthday, young people are financially independent of their parents according to the law. They then manage their own money and can independently take out insurance, subscriptions, or loans. However, it costs young people more effort than older people to foresee the long-term consequences of financial decisions. The brain region that controls planning, impulse control, and emotion regulation is still developing until approximately the 25th year of life (Hersenstichting, n.d.). This makes young people extra sensitive to social and material rewards, impulsive behavior, and risky decisions. While this is often crucial in financial choices, such as taking out loans, where costs and benefits must be carefully weighed. In an environment without too many external stimuli, this could already be a challenge, but the digital world in which Gen Z grows up significantly reinforces this vulnerability.

Young people are exposed daily online to temptations to spend money, such as gambling games, in-game purchases, pay-later options, and risky investments or cryptocurrency. A large part of Gen Z buys products via smartphone (83%), has learned about new brands through advertisements on social media (62%), or was inspired by them to buy a product (50%). These percentages are higher than in older generations, making Gen Z more sensitive to online marketing and influence (Ruigrok, 2024). Additionally, personalized advertising and advanced algorithms stimulate interaction and purchasing behavior. The ease with which money can be spent—with just one click or a quick facial recognition—makes it harder to resist impulsive spending (Youngworks, 2020). Gen Z and Millennials are more likely to take action following an advertisement on social media than older age groups (Ruigrok, 2024). At the same time, this digital world also offers opportunities, such as starting to build wealth early, independence at a younger age, and more financial overview (Movisie, 2025).

The financial position of young people increasingly depends on that of their parents. Young people from wealthy families have a greater chance of building significant wealth themselves compared to young people from less wealthy families. Children with parents at the top of the wealth ladder are more wealthy later in life than others. This effect has become stronger since 2006. This is mainly due to inheritances and gifts. Although children from low- and middle-income families have improved in absolute terms, for example thanks to better access to education, technology, and a higher standard of living than previous generations—they have fallen behind relatively compared to children of wealthy parents. Children of parents with significant wealth have more financial opportunities than children from less wealthy families. Especially in the richest group, wealth often remains in the family, causing the gap to widen (CPB, 2024). For a part of Gen Z, it can be a challenge to get ahead financially—independently of parents.

1.4 Mental Health and Financial Stress

In recent years, young people have reported more mental health problems and high stress levels (GGD GHOR, 2025). For Gen Z, the increase in (reporting of) mental complaints can be explained by a combination of influences, such as the consequences of the corona crisis, the student loan system¹, and therefore more financial responsibilities, online social comparison, consumption pressure, and exposure to negative world news from a relatively young age. Many young people find it important to seek professional help for psychological complaints (Bethune, 2019; Veldkamp et al., 2021). Additionally, there is more acceptance, awareness, and openness regarding mental health, which can mean that people today seek help faster and report mental complaints more readily.

¹ Students between academic years 2015-2016 and 2023-2024 studied under the student loan system. This concerns about 1 million students, and the average student debt amounts to 17,800 euros in 2024. The average student debt has increased since the introduction of the student loan system. Gen Zers born between 1997 and 2006 could have studied under the student loan system (CBS, 2024b).

The corona crisis coincided with an important phase in the social and personal development of many young people. Restrictions on social contact and continuous uncertainty due to changing measures have led to psychological and social consequences that are still having an impact (CBS, 2021; Youth Monitor, 2024). The corona crisis hit young people harder mentally than other age groups. In 2021, almost half of 18- to 25-year-olds felt lonely, and almost a third stated that they felt more stressed than before (CBS, 2021). Other research shows that in 2024 one in five young people still suffered from stress originating during the corona...

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