Gen Z Prioritizes Financial Stability—From Romantic Decisions to ‘401(k) Mullets’
As workers struggle with high daily costs and market volatility, some are tailoring their personal lifestyles to fit in financial stability.
The modifications include changes in money habits, style, and even romantic relationships. A new report from Nerdwallet, which surveyed 2,000 U.S. adults, proved that most couples won’t do anything for love, and would in fact break up with a partner over a financial issue.
More than half (54%) of respondents said they would leave a romantic relationship if their partner was untruthful about a financial situation, while 31% would move on if their partner did not invest for the future, and 28% would leave if they didn’t have any savings.
Not having a retirement account was also a major dealbreaker for 15% of respondents in the Nerdwallet survey.
“Long-term, a relationship isn’t going to survive on love alone,” says Sara Rathner, a credit card expert at NerdWallet. “When you’re combining your lives, how you handle money issues becomes really important.”
‘401(k) mullets,’ quarter zips are in
Younger workers are emphasizing retirement savings more today, thanks to recent style and culture trends. While Millennials were sarcastically lambasted for spending money on small purchases like avocado toast prior to the 2020s, Gen Z workers today are considered to be more financially responsible than past generations.
This perception could be seen in style transformations made today by Gen Zers, from an uptick in wearing collared quarter-zip sweaters to rocking “401(k) mullets”—a modern, professional approach to the popular 70s and 80s hairstyle.
Recent reports from CNBC and Vogue say the haircut, worn by leading actors like Jacob Elordi, Paul Mescal, Joe Kerry, and Austin Butler, is a smarter take on the controversial style, and one that blends flair with financial responsibility.
Younger workers have also been seen debuting contemporary versions of classic professional wear. Rather than wearing fleece-lined jackets or vests donned by New York City’s Wall Street and Midtown “finance bros,” Gen Zers, like recent-grad and TikTok creator Jason Gaymi, are going viral on social media for sporting quarter zip sweaters. The “Quarter Zip Movement” trend was pushed even further in November when Rapper T-Pain posted a picture of his new fit on Instagram with the caption, “401k and a quarter zip.”
Style changes signal financial attitude shifts
The fresh approach points to changes in how younger workers are handling their future savings at a time when many cannot afford to buy a home or struggle to pay off student loan debt. Multiple reports from financial institutions all show that Gen Zers are taking better care of their financial health compared to previous generations.
According to Nationwide Retirement Institute, the youngest working generation also feels more engaged with retirement planning, have regularly checked their retirement account balances, increased contributions annually, and have planed for market downturns.
Others are taking steps to strengthen their financial standing, like adding money towards their savings and paying down debt, finds a study by Bank of America. These workers are prioritizing financial security as they combat increasing expenses, including costs for groceries, rent and utilities, and dining out.
“Gen Z is challenging the stereotype when it comes to young people and their finances,” said Holly O’Neill, president of Consumer, Retail and Preferred Banking at Bank of America, at the time. “Even though they’re facing economic barriers and high everyday costs, they are working hard to become financially independent and take control of their money.”
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.