The Gen Z Age Range is roughly 12 to 27 years old today in 2024.

Generational cohorts and their differences can be a great lens to understand everything from finances to workplace culture. And that's no different with Gen Z. 

There are stereotypes and beliefs that may fuel misunderstandings amongst those who are labeled Baby Boomers, Generation X, Millennials, and Generation Z.

If you're here looking for the quick answer on what is the Gen Z age range, here you go: 12 to 27 years old.

However, the lower end of this generation is subject to change (it took years before the millennial age range was "finalized"). People are already calling the next generation Gen Alpha. This is based off data from the Pew Research Center.

Let's dive in to what this means and why you should care.

Why Is There A Need To Understand Generational Differences?

You might be curious about where you fall within your specific generation—do you agree with work and financial sentiments? Are you ahead or behind the curve? It makes sense to understand how your specific cohort lives—what kind of income do they earn and how much do they owe in student loans?

From a business perspective, knowing specific generational behaviors and how social media or technology is being used, for example, could be highly relevant for a product or service. Also, companies that are in dire need for qualified employees might want to understand aspirations and concerns faced by a specific generation. 

Take a look, as we dig into each generation and gain a better idea of whether the numbers substantiate the stereotypes.

Generational Quick Facts

Here are typical incomes and debt faced by the average Millennial and Gen Z.

As of now, Millennials are among the highest wage earners in the United States, and they are the most educated. Gen Z is just launching into the workforce, but so far has lower student debt loads than Millennials.

Of course, these numbers could change. In particular, we may see more members of Gen Z returning to school and taking on debt to complete their formal education. Graduate debt continues to increase each year, so Gen Z may see student loan balances increase if they return to school in large numbers.

Millennial And Gen Z Similarities

Millennials and Gen Z share two important characteristics that may shape workplaces and the economy as a whole.

Off To An Economic Slow Start

A large proportion of Millennials saw their professional growth stymied by:

• The dot com bubble bursting (2000-2002)
• The housing collapse (2006-2007) 
• A relatively slow economic recovery

Hampered by student loans and a sluggish economy, Millennials delayed major milestones (marriage, first child, buying a house) compared to previous generations. 

Gen Z may face similar sluggish conditions as they enter the workforce. Following a decade of economic growth, Gen Z’s first college graduates entered the workforce just months before the world shut down because of Covid-19. 

The current recessionary conditions may also hamper growth for Gen Z as they enter the workforce. 

Earning extra income outside of the day job may prove to be a necessity for many members of Gen Z.

Digital Natives

Millennials came of age during the first internet explosion and were some of the earliest adopters of social media platforms. Gen Z grew up with internet technology around them, including streaming platforms and other forms of on-demand entertainment. 

Digital-first forms of communication (IM, Zoom, Text, etc.) have already infiltrated American workplaces. Gen Z is sure to influence future communication patterns—though they may revolt against the always-on culture and help regulate the constant flow of information.

Appetite For Activism

Seventy percent of the Gen Zers want the government to do more to solve societal problems. Additionally, 64% of Millennials want the same thing. Despite their age, Gen Zers have been lauded for their activism on human rights, climate change and a general desire to lean into activism. 

Millennial And Gen Z Differences

While Millennials and Gen Z share some similarities, the two cohorts may differ on some important points.

Attitudes Towards Education

At this point, Millennials have the most formal education of any generation. As of 2020, 39% had college degrees. By contrast, Gen Z may be more wary of the costs and benefits associated with a four-year degree. 

The pandemic shutdowns dramatically reduced college enrollment among Gen Z with nearly a million fewer students enrolling in post-secondary education between 2019 and 2021. 

It remains to be determined whether Gen Z will continue this trend or reverse it as Covid-based restrictions continue to loosen. If Gen Z reverses the trend towards increasing formal education, the generation may avoid the burdensome debt that plagues so many Millennials.

Millennials May Receive Large Inheritances

Between 2021-2045, Millennials are likely to be the largest recipients of the “Great Wealth Transfer.” 

Boomers currently have more than $70 trillion in assets that will likely be bequeathed to their Millennial children. However, this wealth is largely concentrated among the ultra-wealthy and may not have broad implications for the typical Millennials.

Workforce Composition 

Millennials are currently the largest contributors to the U.S. Workplace (around 35% of the total as of 2018), and will remain the largest share of workers for the next few decades. Workplace culture is likely to lean more toward Millennial preferences until Gen Z joins the workforce in larger numbers.

Gen Z Financial Stereotypes: Are They True?

This cohort, with only a small portion currently reaching full adulthood, entered into these years as we grappled with a global pandemic. So far, the generation hasn’t had a lot of time to develop positive or negative stereotypes. 

But these are a few that may shape our future economy.

Gen Z Doesn’t See Value In A College Education 

Before Covid-19, Gen Z was on track to be the best-educated generation in history. More than 57% of college-eligible individuals were in school in 2018 (compared to 52% of Millennials at comparable ages). But nationwide, college enrollment took a major hit when Covid-19 led to nationwide restrictions. 

Between 2019 and 2021, college enrollment dropped by nearly 7%, with more than 1 million students dropping out. Despite the lower enrollment, it remains to be seen whether this is a blip, or if future members of Gen Z forgo the four-year education.

Gen Z Will Never Come Into The Office 

Working from home was an often-sought perk of previous generations, but because of Covid-19 changing how we work, some Gen Zers are likely working in a hybrid or fully remote situation. 

So will Gen Z ever come into the office? They may expect workplace flexibility, but those in the high school age range don’t see it as a very important factor right now. In a survey, only 23% rated the ability to work remotely as a very important part of a future job. Perhaps a follow-up survey—after they enter the workforce, will change these numbers drastically!

Gen Z Has A Short Attention Span 

Gen Z grew up with WiFi-enabled cell phones and social media. They are the first generation to have experienced the “Always On” phenomenon associated with constant online connectedness from childhood.

Various forms of clinical research have concluded that for certain activities, Gen Z has an 8-second attention span. Millennials have a 12-second span. 

The upside is that Gen Z may have also developed more skills for filtering out unnecessary information. How it all plays out—whether it’s helpful or a hindrance in the workplace remains to be seen.

Final Word

As Gen Z enters adulthood, their actions and choices will continue to be influenced by economic forces outside of their control. Whether the cohort eschews formal education and the accompanying student debt remains to be seen. 

Despite the hoopla and stereotypes of Millennials and Gen Z, the two groups share some similar characteristics that are likely to shape the economy as a whole.

The newest age group entering the workforce is Gen Z. And like most generational differences, they have a different approach to many things - including money. So, how are Gen Z doing financially? What's the average net worth of Gen Z? Let's dive in.

First, it's important to realize that the Gen Z Age Range today is 12 to 27 years old. For the sake of talking about money and net worth, we're only going to focus on 22 to 27 year olds. Because, let's be honest, the net worth of 12 year olds isn't going to help us understand much.

Why should we can about Gen Z's net worth? Well, like the millennials before them, the media continues to portray young adults in this country as unable to get head. But is that really the case? Let's dive in.

Related: Millennial Net Worth By Age

Who Is Gen Z?

Gen Z is technically anyone born between 1997 and 2012 (always subject to change - with more people calling those born after 2012 Gen Alpha). Basically, these people are roughly 11 to 26 today. That's roughly 72 million Americans today. We more fully break down the Gen Z age range here.

What makes them unique as a generation? Well, Gen Z is the youngest generation in the workforce today. And they're entering the workforce during unprecedented events - like the Covid pandemic. This generation also had many formative years living through virtual schooling and other never-before-tried activities. 

When it comes to money, Gen Z does have some of the highest student loan debt rates of any generation in history. The average Gen Z will graduate college with roughly $32,000 in student loans. See this article on the average student loan debt by graduate class/year.

So, it's really a mixed bag when it comes to Gen Z. Like millennials before them, they're really hard to define financially. Especially at such a young age.

When looking at net worth for Gen Z, these are all factors to consider.

Factors To Consider About Gen Z Net Worth?

When I think of the main factors that fall into Gen Z net worth, here's what we need to consider.

First, we need to consider when the Gen Z individual graduated. If Gen Z is roughly 11 to 26 today, some haven't even graduated college yet. However, if you're 26 today, you likely graduated from college 4 years ago - or 2019. That was right before the Covid pandemic.

Second, we need to look at the average salaries of graduates by year. NACE has a great survey that they conduct to look at the average salary of college graduates each year. Look at how much inflation has impacted starting salaries!

Note: The "Class of" date is the year most of your age group graduated a 4-year college (you wouldn't likely be negative if you didn't go to college). For example, if you're 27 in 2023, you likely graduated college in 2019, and high school in 2015. This could be slightly off depending if you're older or younger for your age, or you graduated high school or college early. 

Here's how that looks:

Note: Gen Z has some of the lowest college attendance rates of the last few generations. More Gen Z individuals are skipping college and jumping right into the workplace. This can have a positive boost on net worth much earlier than those that did go to college. At 18 or 19, you have the potential to earn more money without student loan debt. However, since roughly 60% of Gen Z is still attending college, it's a big factor in the overall net worth picture. Most of our data also relies on college graduation data.

Third, we need to discuss student loans. Student loans are a huge factor in Gen Z net worth, so we want to consider the average amount of student loan debt Gen Z had when the graduated (data here). 

Finally, we do have to make some assumptions about saving. Remember, net worth is all about assets minus debt. But income plays a huge role and how much income is saved and how much debt is paid off really makes a difference. For the "average" Gen Z, I'm going to look at average savings rates for the calculation. For the above average Gen Z, we're going to factor in IRA and 401k savings, as well as home equity.

Gen Z Net Worth By Age

As we compare the net worth of Gen Z by age, I want to look at average and stretch goals. I think it's important to always consider the average, but I also want to leave you with a stretch goal to get yourself in the top 1%.

Remember, net worth is assets minus liabilities. As we discussed earlier, the main assets we're focusing on is savings, based on income. The main liability for Gen Z is student loan debt, but other forms of debt (specifically auto loans and mortgages) can seriously impact net worth as well.

Finally, I want to re-emphasize that these are just our estimates. The Federal Reserve data lumps everyone under 35 into one bucket, so while we have some starting points, things can always skew one way or another.

With that in mind, here's the Federal Reserve Data for under 35:

Under 35:

• Median Net Worth: $39,000
• Average Net Worth: $183,500

However, I think it's a great starting point for discussion, so let's jump into it. Remember, we're pulling and estimating based on some very sparse data points, as well as negative net worth for younger cohorts. This is an estimate! But based on years of experience, we think it's a fairly accurate estimate. 

Average Gen Z Net Worth By Age

Here is the Gen Z Net Worth by Age estimate:

Yes, the "average" net worth for Gen Z (who are now in the workforce) is negative. We put the average of everyone at -$19,496. The key year is 27 - that's when we're seeing Gen Z make the jump from negative to positive.

It's clear that both Covid and inflation are having a profound effect on this generation. Covid stifled wage growth in 2020, which hurt the Class of 2020. Inflation is helping the class of 2022-23 with wages, but the costs of goods are also skyrocketing. 

Notes: This assumes that students don't work or work marginally during school, maintain an average amount of student loan debt, and get average employment after graduation

High Achiever Gen Z Net Worth By Age

Now that you've seen what average is, what does it take to be above average? Well, anything better than the chart above is above-average. But I want to give you a stretch goal. I call this the high achiever Gen Z net worth by age.

How do you get here? A few key areas:

• Eliminate Your Student Loan Debt (Read: How To Eliminate Your Student Loan Debt)
• Boost Your Income by 25% (Read: How To Boost Your Income)
• Save at least 25% of your income - can be through both personal savings or through employer matches to a retirement plan. (Read: How To Save For Retirement)

This chart below is calculated basically the same as the "average" net worth above, but with being student loan debt free, and having 25% higher income. Also, raising the savings rate by 25%.

What are some of your thoughts on this? Do you think an 23 year old can have $20,859 saved up just one year after college graduation? I think it's definitely possible - especially the high achievers that started working at 16 (or earlier) and saved a bunch, minimized student loans, and invested.

I think that these high achiever net worth amounts are very do-able. They are a stretch, but not unheard of. And these amounts will clearly make you above average. Probably on track to be a millionaire in your 40s.

How To Boost Your Net Worth

Now that you know the average and above average net worth, how do you get there? It's time to start looking at ways to boost your net worth. 

First, t's essential to track your net worth. I'm a fan of Empower, because it's free, has great tools, and it's online. Check out Empower here. But Empower isn't the only app or tool that can help. Check out our full list of the Best Budgeting Apps here.

The great thing is that you're still young and you have a ton of time on your side. Time is the biggest ally you have in building wealth. But if you want to grow it (and fast), here are two more key areas to focus on.

Boosting Your Income - As mentioned earlier, income is one of the key drivers in building assets and eliminating debt. The more income you have, the easier it is to grow your net worth. I want to challenge you to earn at least an extra $100 per month. We have a great list of ideas to get started. I'm a firm believer that everyone can earn more if they try. I personally went to college full-time, worked full-time, and managed to side hustle as well. 

Eliminating Your Debt - One of the biggest struggles Gen Z have is overcoming a negative net worth and making it positive. Eliminating that student loan debt is key. Leverage your additional income but also look at student loan repayment strategies to help lower that debt.

Final Thoughts

Compared to the average millennial net worth when they were this age, it does seem that Gen Z is doing better. However, while Gen Z may be earning more, and have a slightly higher (albeit negative) net worth than the previous generation, they are facing big headwinds when it comes to the cost of living.

They're making more, but everything is costing more. As such, it can be harder to grow your net worth. Combine that with rising student loan balances, and it's challenging to get ahead. 

The fact is, average is just that - average. It means that there are people doing better, and people doing worse. Keep working on your own situation to improve it and shoot for the high achiever numbers.

More From The College Investor:

Simple Facts

Here are some common questions when it comes to millennial net worth.

What is the average net worth of millennials?

The average net worth of millennials is $549,600. However, this varies quite a bit across the millennial age range. The median net worth of millennials is $135,600.

What is the millennial age range?

Millennials were born between 1981 and 1996, making them roughly 28 to 43 today.

What is the average millennial starting salary?

Millennial starting salaries vary quite a bit by graduation year. Starting salaries have ranged from $40,818 to $52,569.

What is the average millennial student loan debt?

Millennials have graduated with anywhere $18,217 to $29,812 in student loan debt on average, depending on the year they graduated.

Are millennials doing well?

There is a big divergence in millennial success. Many millennials are doing extremely well, but others are struggling. There are plenty of millionaire millennials, but there are also many millennials in poverty.

How To Boost Your Net Worth

Now that you know the average and above average net worth, how do you get there? It's time to start looking at ways to boost your net worth. 

As I mentioned above, it's essential to track your net worth. I'm a fan of Empower, because it's free, has great tools, and it's online. Check out Empower here.

The great thing is that you're still young and you have a ton of time on your side. Time is the biggest ally you have in building wealth. But if you want to grow it (and fast), here are two more key areas to focus on.

Boosting Your Income - As mentioned earlier, income is one of the key drivers in building assets and eliminating debt. The more income you have, the easier it is to grow your net worth. I want to challenge you to earn at least an extra $100 per month. We have a great list of ideas to get started. I'm a firm believer that everyone can earn more if they try.

Eliminating Your Debt - One of the biggest struggles millennials have is overcoming a negative net worth and making it positive. Eliminating that student loan debt is key. Leverage your additional income but also look at student loan repayment strategies to help lower that debt.

Conclusion

The fact is not everyone is average or above average when it comes to net worth. But knowing where you stand is incredibly important. It can validate your current financial plan, or it could provide motivation for you to make financial changes in your life.

Don't be discouraged if you're not hitting the bar yet. Follow the strategies we discussed and start working towards building real wealth.

What are your thoughts? Are you a millennials that's above average or below? What do you think is the driver of that?

More Article From The College Investor:

Editor's Note: This article was originally written in 2016, and there was no data available to figure out millennial net worth. As millennials have aged and even the youngest being in the workforce for a good amount of time, their net worth has been growing, and the data has been increasing. A large amount of our analysis comes from the most recent Federal Reserve Survey on Consumer Finances, which was published in October 2023. This article has been updated to reflect the latest data on millennial net worth.

Debt settlement is widely talked about as a way to get out of debt, but not many people truly understand how it works.

You may have recently experienced a financial hardship and are strongly considering consolidating your debts to relieve some pressure. Before bankruptcy, there are two main debt consolidation options to consider.

The first is a debt consolidation personal loan. This is often for those who still have a good credit score and debt-to-income (DTI) ratio. The second is debt consolidation via debt settlement, which is what we will cover today.

The debt settlement industry has had many companies that have been unscrupulous. In fact, the Consumer Financial Protection Bureau (CFPB) has repeatedly warned borrowers that dealing with debt settlement companies can be risky. Does that mean that all of these companies are bad and you should never work with one?

Let's look at how debt settlement works, its pros and cons, and the most common scams and red flags of unethical debt settlement companies. Here's what you need to know.

How Debt Settlement Works

In short, debt settlement is the process of negotiating your debts for a lesser amount. It’s not to be mistaken for debt management, which is the process where a company would try to negotiate lesser interest rates or a modified repayment plan.

Because there will be negative side effects, you may want to consider all of your credit card debt relief options before pursuing debt settlement. If you haven’t already, you may also want to put together a budget to see whether there are expenses that can be reduced to avoid debt relief altogether.

Understanding The Debt Settlement Process

When you enroll in a debt settlement program, the company you choose will work as the intermediary between the individual and the creditor. Here’s generally how the process works:

Once each plan has been completed, you will graduate from the program -- hopefully totally debt-free.

Your Actual Debt Settlement Results

The biggest downside to working with a debt settlement company rather than negotiating your debts yourself is that you'll have to pay fees for their service which will reduce your actual savings. Before you join any program, you should have correct expectations of how much it will cost you and how much you can save. 

The savings can be significant. But it’s also possible that you won’t save much at all, especially after the fees you'll pay to the debt settlement company have been taken into account. 

Here's how to weigh to perform your own cost/benefit analysis.

Understanding The Costs

Debt settlement companies generally charge for their programs as percentage of enrolled debt or as a percentage of the savings they provide. The most common method is the percentage of enrolled debt. A company that charges a percentage of savings may look for those individuals who have equity in other assets that will allow them to lump together all of the settlements.

• The fee for the percentage of enrolled debt programs often ranges from 15 - 25%.
• In addition, you will often be charged an escrow account fee of $12 - $15 per month.
• You will also often have the option to get legal coverage in case of a lawsuit that ranges from $10 - $50 per month. 

A debt settlement program should negotiate your debt for you if there is a lawsuit. In short, you should not need a lawyer to negotiate on debt with a lawsuit if you're already working with a debt settlement company. But if you do, you generally would pay in the range between $175 - $300 per hour in legal fees.

Below is a breakdown of three monthly scenarios to help you understand how much you will save. This scenario assumes a 50% blended debt reduction, 15% program fee, and $12.50 monthly escrow fee. 

Below is a similar breakdown estimate, but this time the program fee is 25%. You see that you’ll end up paying around $3,000 more in fees in this scenario.

You may still save money when comparing your current monthly payments to the estimates above. But it may be less than originally anticipated.

Also, there are some legal groups that I have seen that charge up to 35% of enrolled debt with additional fees. In this scenario, you may want to estimate how much you’ll be paying to see whether you'll save anything at all.

Understanding The Actual Results

Let’s get granular on a specific example. Many debt settlement companies will quote a 50% debt reduction. But it may fail to mention the fees that you will be paying for its services.

To illustrate this point, let’s say you have $20,000 in debt and the company you chose negotiates for $10,000 over 36 months. The company charges you 25% of the debt enrolled as a fee. You also have to pay a $12.50 escrow account maintenance fee per month.

Let’s also say that you are "solvent" as defined by the IRS. Assuming a 25% income bracket, you only saved $2,050 ($20,000 - $10,000 - $5,000 - $2,500 (25% * Forgiven Debt) - $450).

This may still be a better scenario than the alternative. But projecting your actual results can be helpful before you join a program to compare to other debt-relief options.

Downsides Of Debt Settlement

In addition to the fees that you'll pay, here are a few more disadvantages of working with a debt settlement company.

Potential Tax Implications

If you are solvent as defined by the IRS, you may receive a 1099-C for the forgiven debt. The creditor may submit these canceled debt savings to the IRS when the amount is forgiven is greater than $600. Now you may still save money with debt settlement, but this is an important thing to consider.

Do you always have to pay taxes on forgiven debt? Not necessarily. If you are tax insolvent as defined by the IRS, you may not have to pay taxes on forgiven debt, but this is a better question for a tax advisor

Related: Student Loan Forgiveness And Insolvency

Credit Score Implications

Your credit score will undoubtedly take a tumble. How much you may ask? It often depends on your starting point. The best way to answer this question may be to use myFICO’s free credit score estimator to approximate your score drop based on your personal details.

When debt is settled, the creditor may report it as “paid in full for less than the full balance” rather than charged-off, which would hurt your score less. That said, it’s always better from a credit report perspective to get the "debt paid in full" mark.

Legal Implications

The chances of a lawsuit are probably one of the most important factors to consider before pursuing debt settlement. This is often not spoken about before starting the program. The CFPB says that working with a debt settlement company can increase your risk of being sued for your debts.  

A debt settlement program will generally still be able to negotiate with a creditor even after a lawsuit although the fees are often higher which will reduce your savings. Some programs may offer a legal assistance option if you are sued. But again this will increase your total fees paid.

Beyond the monetary cost, being sued is extremely stressful and can take a huge emotional toll as well.

Common Scams And Red Flags Of Debt Settlement Companies

There are many common red flags and scams to consider before pursuing debt consolidation via debt settlement. Here are three warning signs that you'll want to watch out for.

Few Reviews On Unbiased Review Sites

When you search for specific debt settlement companies, you may find biased and unbiased review sites. Relatively unbiased review sites would include Google, Yelp, or TrustPilot because any customer can share their opinions.

However, you'll want to be more careful with editorial reviews on debt consolidation blogs and sites. The reason is that debt settlement companies may pay these review sites handsomely to secure their glowing remarks and high ratings. You'll want to do your due diligence across multiple review sites before choosing a program.

Charges Upfront Fees

Many years ago, companies would charge large upfront fees before ever settling debts. These companies would take advantage of people by charging fees and never settling a debt.

Thankfully, the Dodd-Frank Act put restrictions on upfront fees. Most debt companies will only charge the program fee after a debt is settled. That said, you may want to make sure that whichever company you're choosing follows the legal guidelines. 

Doesn't Fully Analyze And Discuss Your Lawsuit Risk

There are some creditors that have a higher likelihood of suing than other creditors. When you have 10 creditors, a debt settlement company should know the lawsuit likelihood of each of your creditors based on previous data.

If 1 of the 10 debts has a high likelihood of a lawsuit, then it may be okay to enroll in a program as the debt settlement company should prioritize that debt. But if 9 out of 10 creditors have a high likelihood of a lawsuit, you may want to consider a different debt relief option.

Final Thoughts

Before pursuing debt settlement, you'll want to carefully weigh the pros and cons. When you are considering a specific firm, it may also be good to check with your state’s attorney general and consumer protection office to see if the company you're considering has any outstanding complaints.

Remember, negotiating a debt settlement on your own could save you the most money since you won't have to deduct any fees from your savings. Also, creating a debt management plan (DMP) with a NFCC-certified credit counselor could be a better option as it could relieve your debt pressures while also preserving your credit score and steering you clear of lawsuits.

Finally, you may want to consider starting a side hustle to increase your income while you're in debt-payoff mode. If you're looking for a side hustle that can earn you extra money quickly, here are 53 ideas to consider.