Gen Z Out-Saves Older Generations: A Look at How They Are Mastering Money and Wellness

Generation Z, often defined as those born between 1997 and 2012, has been quietly but powerfully reshaping the way we think about technology and finance. According to PYMNTS Intelligence, Gen Z not only engages with digital tools more than any other generation but also saves a larger share of their income than older cohorts—28% more than the national average. This group, known for their savvy use of technology, has integrated it into every aspect of their lives, from managing money to staying healthy, and their financial habits reflect a maturity beyond their years.

This revelation comes from the Gen Z Decoder Ring report, which is based on more than 25,000 U.S. consumer responses. While Gen Z continues to dominate digital engagement, the real story lies in how they’ve evolved their relationship with technology—not through endless use, but by curating the apps and tools that make life easier and more efficient.

Key Data Points: Gen Z’s Digital Engagement and Saving Habits

1. Digital Activity

Despite leading in digital activity with 425 digital activity days per month, more than double that of baby boomers, Gen Z’s app use has started to decline. This shift, a 7% drop between 2024 and 2025, signals that Gen Z is not just consuming digital content mindlessly; instead, they are optimizing their digital routines. Gen Z has streamlined their digital behavior, choosing tools that align with their goals and ignoring those that don’t.

2. Saving and Money Management

A significant finding from the report is that 36% of Gen Z’s income is saved, despite having lower average earnings compared to older generations. Gen Z saves 28% more of their income than the national average, spreading it across a variety of financial instruments, including bank accounts, digital wallets, and cryptocurrency holdings. This demonstrates an impressive financial discipline, with a focus on long-term goals even if short-term earnings are modest.

3. Side Hustles and Supplemental Income

55% of Gen Z engages in side hustles, earning supplemental income not out of necessity but to fund lifestyle goals such as experiences, specific purchases, and savings rather than covering basic expenses. This shift in gig work reflects how Gen Z has redefined freelance and gig economy work—not as a means of survival, but as a way to fund the life they design for themselves.

Beyond the Apps: Gen Z’s Digital-First Approach to Life

Gen Z’s approach to money management and wellness is rooted in optimization and system management. Their lives have become a seamless blend of digital tools that help them streamline and maintain their personal goals. Here’s how they’re leveraging technology:

1. Technology as a System

For Gen Z, technology is not just something they use—it’s a system they tune and tweak. From mental health apps to telemedicine, Gen Z is using digital tools not just to react to needs but to prevent issues. They’re spending more time on apps related to mental wellness, averaging five extra days per month on mental health apps, three more days on virtual therapy, and three additional days on telehealth visits.

This proactive approach mirrors their money management strategies. Rather than simply spending, Gen Z thinks of finances as a system to optimize—whether it’s through budgeting apps, credit-building tools, or investment platforms like cryptocurrency.

2. Virtual Marketplaces

Gen Z’s homes are as much virtual marketplaces as physical spaces. The report notes that 17% of Gen Z buys groceries from Amazon or Whole Foods, a number that’s three times the rate of older consumers. This shift toward online retail and digital marketplaces has reshaped how they approach shopping, with convenience and instant gratification at the forefront of their buying decisions.

The Impact on Traditional Industries

Gen Z’s behaviors have forced traditional industries to adapt. Financial services firms like Chime, Varo, and Greenlight have developed banking products tailored specifically for this generation’s digital-first lifestyle. Even major banks have followed suit, offering fee-free accounts and credit-building tools designed to meet Gen Z’s expectations.

The same is true for health and wellness industries. Telehealth companies like Teladoc and BetterHelp have successfully integrated mental wellness apps into mainstream services, providing Gen Z with more accessible ways to manage their health digitally. Retailers like Walmart and McDonald’s are also shifting their business models to align with Gen Z’s on-demand mentality, adjusting their services to meet the needs of this digital-native generation.

Gen Z: The Template for the Future, Not an Outlier

The biggest revelation from the Gen Z Decoder Ring report is that Gen Z’s behavior is not an anomaly. Instead, their approach to life in the digital age is becoming the template for future generations. Technology is fading into the background as Gen Z seamlessly integrates it into their daily routines. What once seemed revolutionary—such as using digital wallets, AI-driven recommendations, and telemedicine—is now becoming standard.

As digital infrastructure improves and tools become more intuitive, other generations are beginning to follow Gen Z’s lead. Their ability to manage money, health, and daily life through technology is quickly becoming a universal model for how future generations will live.

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