When it comes to money, Gen Z — the generation born between the late 1990s and early 2010s — is full of surprises. While they’re often pictured as solely values-driven and socially conscious, their financial behaviours actually reflect a mix of altruistic goals and self-oriented influences. We spoke to Julien Schmitt, a professor of sustainability and marketing at ESCP, to gather his insights into how this generation thinks about money — and what it means for businesses trying to connect with them.
There’s a common belief that Gen Z cares more about personal values than money, but Schmitt says that’s a simplistic view of reality. “The need for money is just as important for this young generation compared to previous ones,” he explains. For Gen Z, money is tied to their sense of life success, but there’s a twist: their values, like saving the planet and supporting ethical causes, often create tension with their ambitions.
“They’re trying to balance this desire for personal success with their belief in taking care of the planet and doing good,” Schmitt says.
[Gen Z is] optimistic about their own lives but pessimistic about the state of the world. That might be why saving for decades down the line feels less relevant to them.
Enjoying the present moment
Unlike previous generations who had an important need to cautiously save for the future, Gen Z seems to be more inclined to make the most of the here and now. This attitude is shaped by a mix of social media and global uncertainty.
Social media influencers, especially those flaunting luxury lifestyles, play a big role. “Seeing people in Dubai driving expensive cars and living the high life creates a model of success that’s all about fast money,” Schmitt notes.
At the same time, Gen Z is deeply concerned about the future of the planet, which makes it harder for them to imagine a long-term plan. “They’re optimistic about their own lives but pessimistic about the state of the world,” he explains. “That might be why saving for decades down the line feels less relevant to them.”
Take the rise of cryptocurrency, for example. “Crypto appeals to Gen Z because it promises quick wealth,” Schmitt says. “It’s seen as a faster way to get rich compared to traditional savings accounts.”
Spending with values in mind
One thing that stands out about Gen Z is how much their values influence their spending. “They understand that they can use their money to make a difference,” says Schmitt. Whether it’s choosing organic or fair trade products, buying second-hand or supporting sustainable brands, this generation see how their purchases can have an impact on the world.
Interestingly, Schmitt says Gen Z sees individual actions such as buying ethical products as more impactful than structural changes that can be influenced by actions such as voting or even traditional activism. “While consumption choices have an important influence, they are not enough to create real societal change if not accompanied by structural changes,” he explains.
Here, there is a lack of a clear understanding of financial products like bank accounts or investments. “They don’t always realise how choosing a bank that avoids fossil fuel investments could have an even bigger impact than buying an organic t-shirt,” Schmitt points out. “There’s a real need for better financial literacy here.”
Putting values into action
Despite their good intentions, it is difficult for Gen Z to align their spending with their values. They’re willing to make sacrifices, like eating less meat to reduce their carbon footprint, but there are limits. “They might still fly for a vacation because some compromises feel harder than others,” says Schmitt.
This thought process is made difficult by many factors that provoke the “green gap”, referring to the difference between what people believe is right and what their actual behaviour is. Among those factors, the most common ones are the higher prices of sustainable options or the high desirability of some unsustainable options such as plan travel.
Consequently, Gen Z often has to weigh their options carefully. “They’re asking themselves, ‘Should I even consume this category of product? And if I do, what’s the best choice for the planet?’” he explains.
What businesses can learn
For businesses, Gen Z’s values present both challenges and opportunities. One clear takeaway is the need to offer sustainable, affordable options. “Second-hand markets or repair services could be game-changers for this generation,” Schmitt says.
But it’s not just about products — it’s also about messaging. “Right now, influencers and social media are driving a narrative that enjoying life is all about material success,” Schmitt points out. “If businesses and society could promote a different vision of what it means to enjoy the moment, it might help Gen Z resolve some of their contradictions.”
Education is another area where businesses and educators can make a big impact. “Young people need to understand how finance works beyond just consumption,” says Schmitt. “Teaching them how their money can influence the world — whether through ethical investments or their banking choices — could reconnect them with the bigger picture.”
The bottom line? Gen Z’s approach to money shows a generation trying to balance optimism, uncertainty and the drive to make choices that reflect their values. They’re focused on enjoying their money now but want to do it in a way that aligns with their ethics.
For businesses, the takeaway is clear: meet them where they are. Offer sustainable options, promote financial education and rethink the narratives around success and spending. “This generation really believes their money can change the world,” says Schmitt. “Businesses have a huge opportunity to help them do that.”
By understanding how Gen Z thinks about money, companies can build stronger connections with a generation that’s redefining what it means to spend, save and make a difference.
This article is linked to a collaboration between ESCP, Crédit Coopératif, Le Monde and Viavoice: “l’Observatoire du sens de l’argent“.