Source: Fortune
Summary
Gen Z’s economic habits are shaped by their experiences and perceptions of the economy, leading to a phenomenon called “disillusionomics.” Economist Alice Lassman coined this term to describe how Gen Z is coping with an uncertain financial future. The generation is characterized by high debt, a rejection of traditional financial prudence, and a tendency to commodify their lives. They are also more likely to use buy-now-pay-later services and prioritize value and sustainability in their spending. Lassman argues that Gen Z’s approach to economics is a result of their disillusionment with the economic system and their desire to create their own income streams.
Our Reading
The numbers tell one story. Gen Z’s economic habits are a reflection of their experiences and perceptions of the economy. They are taking a different approach to financial planning, prioritizing flexibility and value over traditional notions of stability. Economist Alice Lassman’s concept of “disillusionomics” highlights the ways in which Gen Z is coping with an uncertain financial future. The generation’s tendency to commodify their lives and prioritize value and sustainability in their spending is a sign of their disillusionment with the economic system.
Gen Z is not playing by the rules, and their approach to economics is a reaction to the economic nihilism that has become increasingly prevalent. They are creating new opportunities to build lives for themselves in a system they don’t believe serves them. As Lassman notes, “A lot of it is just kind of reactive… And so they’re kind of defining their own income streams.”
Their economic behavior is a sign of their desire for control and agency in a uncertain world. By gamifying their finances and creating new income streams, Gen Z is taking matters into their own hands and shaping the 21st century as they grow up.
Gen Z’s economic behavior is a reflection of their values and priorities, and it’s a sign of a larger shift in the way people think about money and economics.
