Surviving the present, investing in the future: Gen Z’s financial balancing act

But Gen Z is also the most digitally savvy generation yet, quick to adopt budgeting apps, mobile wallets, and investing platforms. The result is a generation redefining what it means to manage money in Canada today.

By the numbers

Workers of all ages have to contend with stagnant paycheques and irregular work alongside a surging cost of living, but Gen Z is doing it as the youngest workers in the country.

A recent report by fintech company KOHO paints a pretty grim picture for young Canadians. According to their numbers, only 41% of Gen Z are employed full time and nearly 20% are unemployed. With an average monthly income of just $1,083, it’s no surprise that nearly half expect to take on more work in the next year—and only 29% say they feel financially stable.

Unsurprisingly, there’s not a lot of wiggle room in Gen Z budgets. Respondents report forgoing investing, savings, and luxuries like travel to cover the basics, and many are also cutting their discretionary spending (52%) or borrowing from family (28%) to do so.

These findings won’t come as a surprise to labour market watchers, but here are some numbers that might: According to the findings from a recent survey by the National Payroll Institute (NPI), Gen Z workers save an average of 11% of each pay cheque, higher than any other generation. And 30% of Gen Z respondents reported saving $10,000 or more in the past year alone.

Here’s another stunner: A recent TD survey showed 68% of Gen Z are investing consistently, and more than any other age group in Canada.

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Young investors

According to the survey, only 49% of Canadians feel like they’re investing enough, but there’s a clue in the data about the disparity between Gen Z investors and other workers. A full 45% of respondents cited a lack of confidence in their investment knowledge as a factor.

Gen Z, on the other hand, isn’t waiting for an appointment with a financial advisor to make their investment decisions. They’re getting advice from social media, podcasts, and TikTok—and then they’re downloading investment apps and opening tax-free savings accounts (TFSAs).

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Put simply, young investors are using young peoples’ tools to educate themselves and put money away for the future.

Paycheques and portfolios

Few would choose to go back to the stresses of their early career, especially now, while wages stagnate and the cost of living soars. Yet Gen Z is, if not thriving, at least surviving—and despite a financially challenging environment, they’re finding a way to build their investments. They want paycheques and portfolios. Here’s how they’re doing it.

Gen Z is using budgets to identify and reduce discretionary spending. They understand that even small amounts add up if you save regularly, so “nice to haves” can wait. As a digitally native generation, Gen Z is comfortable using resources that are freely available to them—like podcasts and social media—to educate themselves. Then, importantly, they use financial apps and go online for investing, starting with leveraging tax-advantaged accounts like TFSAs and first home savings accounts (FHSAs).

Gen Z understands the maxim, “Pay yourself first.”

A new financial culture

Gen Z is entering adulthood at a time when housing is less affordable than ever, wages often lag behind rising costs, and debt loads are increasing at a worrying pace. Yet, rather than retreat, many are finding creative ways to take control—embracing digital tools to budget and invest, relying on debit and mobile wallets to manage everyday spending, and supplementing incomes with side hustles or gig work.

While the challenges are real and persistent, this generation’s willingness to learn, experiment, and rethink traditional approaches to money shows that they are not just surviving difficult conditions, but laying the groundwork for a new financial culture.

While the financial road ahead may be uncertain, Gen Z’s adaptability, digital savviness, and determination suggest they’re well-equipped to carve out a stable future—and could reshape what financial stability looks like for the generations that follow.