Why Gen Z is ditching traditional finance for crypto and social apps

Generation Z has a growing reliance, enthusiasm and trust in crypto, creating a massive divide in where different generations invest their money.

According to an OKX sponsored survey conducted earlier this year, 40 percent of Gen Z and 41 percent of millennials said they feel confident about crypto platforms.

On the flip side, only about 27 percent of Generation Xers and a slim 9 percent of baby boomers were crypto confident.

It’s a divide that is likely to only grow, as older generations generally stick with the banks they’ve been using.

Gen Z’s trust in crypto platforms is also evident based on the percentage of the generation’s digital portfolios and investment advisers.

Previous reporting by Forbes found that half of young wealthy investors have considered switching or have switched their financial advisers because they wouldn’t support crypto investment.

Looking at year-to-year comparisons, 36 percent of Gen Zers and 34 percent of millennials said their trust in cryptocurrency went up from 2025 to 2026. Only 16 percent of Gen Xers and 6 percent of baby boomers said their confidence increased.

Younger investors see the constant accessibility and easy-to-use tools as a better product than traditional banking. Older generations are worried about the security concerns associated with the easily accessible platforms, which is why trends show they stick with those companies.

Seventy-one percent of baby boomers said they believe that banks aren’t going anywhere and will continue to be a primary source in the financial systems, while more than half of Gen Zers said they will eventually be surpassed by crypto, Forbes stated.

The OKX sponsored survey was conducted in January with 1,000 participants.

 — Joshua Feldstein

Gen Z is years ahead on retirement investments

It doesn’t sound great for Gen Z.

We have the lowest savings-to-spending ratio of any generation, young adults are struggling in the job market and monthly expenses are rising faster than wages.

Last week, The Feed reported that nearly half of the generation lives at home.

Yet there may be a silver lining.

Gen Z has started investing earlier than previous generations, Investopedia reports. The outlet cited JPMorganChase Institute research that found that more than one-third of 25-year-olds in 2024 had moved significant money into an investment account since turning 22, up from 6 percent in 2015.

Additional research found that while the average baby boomer started saving for retirement around 34, the average Gen Zer started at 24. 

A separate Investopedia report found that Gen Z workers already have an average 401(k) balance of $13,500. The outlet said this may be due to a dwindling trust in Social Security among younger generations, since it’s projected to run out by 2034. 

Only 5 percent of Gen Zers expect it to be their main source of retirement income, and 58 percent of zoomers and millennials surveyed expect to rely on personal retirement accounts. 

Gen Z is most likely to be on track to retire successfully, per projections from Vanguard.

Forty-seven percent report having enough money to maintain their current lifestyle in retirement. Millennials take second place at 42 percent, followed by 41 percent of Gen Xers and 40 percent of baby boomers.

 — Claire Leibowitz

Digital Natives: The TikTok Shop revolution

Major brands have started taking advantage of Gen Z and Generation Alpha’s constantly wandering eyes, meeting them on TikTok and setting up digital storefronts on TikTok Shop to get more product exposure.

Now, the content and product recommendations are tailor-made, drawing younger people in and keeping them there.

Gen Z uses social media platforms, like TikTok, as search engines to find products, Vogue Business reports. 

Companies are also now facing the pressure to cater to the social media crowd, including Ulta Beauty CEO Kecia Steelman, who emphasized how important Gen Z is to the beauty and cosmetic industry in an interview with Fortune. 

Steelman uses the example of how young men and women have taken an interest in colognes, layering them and creating their own scents, a trend that has developed on social media.

Ulta Beauty is attempting to use outlets like TikTok Shop to its advantage to make these products more accessible to new audiences.

“You have to be where the social activity is happening, especially with the younger consumer. You want to be a part of the conversation, and you have to really lean into social to be able to do that,” Steelman said. 

Other major brands such as JBL, Gap and Samsung can also be found on TikTok Shop. In today’s consumer world, major brands have had to adapt to Gen Z’s tech savvyness and utilization of social media, otherwise they won’t be found.

 — Joshua Feldstein

One last thing: $20 burritos in the little treat economy

Rep. Dan Crenshaw (R-Texas) drew criticism last week after weighing in on the debate of a viral $20 burrito. “Stop whining, get a job, eat Ramen like the rest of us did in college, on a budget with 4 roommates,” he wrote on the social platform X.

Spending money on trivial treats is a core component of Gen Z culture, Daniel Levine, director of consumer trends at Avant-Guide Institute, told Fortune. He compared it to millennials’ avocado toast craze, Gen X’s affinity for junk food and baby boomers’ ability to splurge on bigger ticket items.

A Bank of America Institute survey recently investigated the little treat economy and found that 92 percent of Gen Z respondents said they treat themselves. If they had a bad day, they picked it up with a treat. If they had a good day, they celebrated with a treat. The generation’s spending at small- and mid-sized coffee chains grew more than 25 percent in June, a rate higher than other generations. 

These purchases also extended into the beauty category, reflecting trends seen in the “lipstick index,” the theory that measures sale trends of affordable luxury items like lipstick amid financial stress. The study found that Gen Z’s spending at cosmetic stores was almost four times stronger than the growth of transactions, suggesting that the group spends more and more often.

Young adults have started to embrace financial nihilism as long-term financial goals continue to feel further away, Fortune reported. It’s hard to save for a house, but it’s easy to buy a $20 burrito or a $10 iced coffee for making it through the week. 

The Bank of America Institute study surveyed more than 2,000 respondents, including 1,146 general population adults and 1,133 Gen Z adults, with margins of error of 3 percentage points for both groups.

— Claire Leibowitz

The Feed is a weekly scoop on Generation Z put together by three Generation Z editors at The Hill. We’re working to understand the ins and outs of our generation’s politics. Send tips or comments to awalker@thehill.com, jfeldstein@thehill.com or cleibowitz@thehill.com.