Gen Z vs. Millennials: Who’s Better at Saving Money?
Gen Z’s Saving Approach
Gen Z entered adulthood with advanced financial technology at their fingertips—digital wallets, investment apps, and instant budgeting tools. They are generally cautious spenders, shaped by witnessing the financial struggles of older generations.
- Strengths: Comfortable with online banking and micro-investing.
- Habits: Prioritise side hustles, automated savings, and short-term financial goals.
- Challenges: Limited long-term investment experience, rising housing and education costs.
Millennials’ Saving Approach
Millennials were the first to experience the shift from traditional banking to digital finance, but many started their careers during economic recessions, making consistent saving difficult.
- Strengths: More experienced with investments and retirement planning.
- Habits: Focus on long-term savings like property, pensions, and diversified portfolios.
- Challenges: Balancing debt repayment with savings, navigating delayed wealth building.
Technology’s Role in Saving
Fintech tools have changed how both generations manage money. Apps that track spending, automate savings, and offer investment options are common among both age groups—but Gen Z tends to adopt new tech faster.
Economic Factors in 2026
- High inflation impacts both generations’ purchasing power.
- Housing markets remain challenging for first-time buyers.
- Remote work offers more flexibility but can also lead to variable incomes.
Who’s Actually Saving More?
Recent studies show that Gen Z, despite lower incomes, often saves a higher percentage of earnings than millennials did at the same age. However, millennials generally have more total savings due to their longer time in the workforce.
Tips for Both Generations
- Automate savings to avoid overspending.
- Invest early to benefit from compound growth.
- Build an emergency fund to cover at least 3–6 months of expenses.
- Stay informed about financial trends and adapt strategies as needed.
Related Reads
Find more generational finance insights at Ichhori.com
Key Takeaway
Gen Z is proving to be disciplined and tech-savvy savers, while millennials bring long-term planning and investment experience. The best results come from combining Gen Z’s agility with millennials’ financial maturity to build lasting wealth.