6 Gen Z savings strategies that can work for anyone

Gen Z — those born between 1997 and 2012 — are often portrayed as a generation burdened by student loans, high living costs, and economic uncertainty. But that hasn’t stopped them from being savvy savers.

Gen Z was the first generation to grow up fully immersed in technology and media. Online banking, advanced fintech tools, and a wealth of financial content have all played a role in their relationship with money.

This generation also embraces transparency and authenticity, including around personal finances. While discussing salaries and bank account balances may have been considered a faux pas by previous generations, Gen Z adopts a modern mindset and freely shares details about their financial status with friends, family, and the internet at large.

“Gen Z is getting good at saving, especially given the environment they’re growing up in,” said Brennan Thiergartner, a certified financial planner at Fidato Wealth. “They’ve lived through a pandemic, inflation, and constant headlines about student loans and housing costs, so they’re naturally more cautious with money.”

Thiergartner added that Gen Z values flexibility and independence, which is why so many are striving for the freedom that money brings and have started looking at intuitive ways to achieve their goals.

That said, these traits don’t have to be exclusive to twenty-somethings — anyone can borrow from Gen Z’s playbook to build financial stability in today’s challenging economy.

The envelope budgeting strategy is a cash-based system in which you divide your income into different envelopes, each labeled for a specific spending category, such as groceries, rent, gas, and entertainment. The idea is simple: Once the money in a particular envelope is gone, you can’t spend any more in that category until the next month.

Envelope budgeting has been around for many years, but it’s found new life with Gen Z.

Commonly referred to as “cash stuffing,” this trend has gone viral on TikTok and Instagram, where users film themselves re-stuffing aesthetic budgeting binders and sharing their progress with online audiences.

For Gen Z, envelope budgeting is not just practical — it’s a lifestyle trend that makes financial discipline feel more rewarding. And it’s not just for young adults; Anyone who struggles with sticking to their budget can benefit from trying the envelope budgeting method.

2. Leaning into automation and AI

Consistency is key when it comes to growing your savings. And today, there are plenty of tools that can help.

Younger generations in particular have embraced automation and artificial intelligence in many aspects of their lives, including money management. “One thing that stands out is how Gen Z blends technology into their money habits, as they are the first generation of digital natives,” Thiergartner said. “They use apps to track spending, automate savings, and invest spare change.”

3. Gamified saving and spending challenges

Gamifying your savings can motivate you to stay the course even when you’re making sacrifices or difficult choices about how to spend your money.

Savings challenges — from No Buy 2025 to the 52-week savings challenge — are becoming increasingly popular among Gen Z. These challenges are all about committing to eliminating discretionary spending for a set period of time in order to save more money for important financial goals.

So, if you’re feeling stuck or demotivated when it comes to saving, take a cue from Gen Z and make it a personal challenge.

Gen Z is known for being vocal and setting clear boundaries. Enter: loud budgeting.

This financial strategy centers around setting boundaries with friends and family and learning to be comfortable saying no, especially to social activities that don’t align with your money goals.

For example, instead of making an excuse like “I’m busy tonight” to avoid an expensive dinner, someone practicing loud budgeting might say: “I’m skipping this because I’m saving for my emergency fund.”

The idea is to normalize talking about money openly and reduce the stigma around prioritizing your financial goals — which are core Gen Z values.

5. Second-hand shopping

One way Gen Z boosts their savings is by embracing thrift culture, even starting social media groups and showcasing their thrift store finds online.

In fact, a 2024 Harris poll found that 63% of Gen Zers have bought clothing or accessories secondhand (from thrift stores or resale marketplaces) versus 47% of all U.S. adults.

Thrifting clothes, home goods, and other items can help you stretch your budget further since secondhand items tend to be significantly marked down from traditional retail prices. But it has other benefits, too, such as reducing the amount of waste in landfills and making it easier to discover vintage and discontinued styles.

Cutting your spending is one way to save more money, but it has its limits. Your earning potential, on the other hand, is technically limitless. That’s why starting a side hustle can be a smart way to increase your income and put more money toward financial goals.

More than 4 in 5 (81.9%) of Gen Z said they have some form of side hustle, according to a survey by Self, a company that provides credit-building tools. It also found that those aged 18-24 were making an average of $533.43 per month from their side jobs, or just over $6,400 a year.

“They’re often funneling money from multiple income streams into savings — something older generations didn’t really have access to in the same way,” Thiergartner said. “With access to the internet, they are able to find different ways of not only making money, but keeping it and having it work for them.”

6 Gen Z savings strategies that can work for anyone

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