Homeownership? Vacations? Not Anymore. Here’s What Gen Z Is Sacrificing To Survive 2025 – Essence

I don’t know about y’all, but 2025 isn’t 2025’ing the way I thought it would last year (pre-November). 

In fact, the future looks nothing like what many of us imagined five months or even five years ago. As a millennial watching Gen Z navigate this economy, I’m seeing my own financial anxieties amplified in real-time. My emergency fund never feels quite large enough and with the down market, I’m not sure if I’m on the right track with my investments. And the new house I thought I was going to buy this year. Um, let’s just say that may be a 2026 or even 2027 goal.

Every extra dollar I make goes straight to my “just in case” fund – because these days, the “just in case” scenarios keep multiplying. And if you’re also a homeowner, you know every time you turn around it seems like there’s always something to fix or buy for the home that dwindles that “just in case money” (No lie, I just spent $150 for someone to come fix my kitchen sink, only for them to take a plunger and be done in 3 minutes).

According to Intuit’s latest 2025 Prosperity Index released just before the end of Financial Literacy Month, I’m not alone in this financial paranoia. A whopping 69% of Gen Z and Millennials find long-term financial planning nearly impossible in today’s economy. And almost everyone surveyed, which was approximately 98%, pointed to the cost of living as their primary financial concern.

This financial pressure is forcing serious lifestyle changes across generations. The survey reveals that a large percentage of Gen Z are moving back home with parents or rooming with friends just to manage basic expenses. I’ve watched friends in their mid-30s reluctantly sign leases with roommates after a decade of living solo, or even back back in with their parents, not because they want the company, but because rent has increased 40% while their salaries haven’t budged. Those pandemic rates and deals have slowly started to increase making it unaffordable for so many.

And despite what you may see on social media, travel and homeownership are also on the chopping block. With interest rates and flight prices such as these, good luck. Nearly half of young adults have indefinitely shelved their vacation plans. That trip to Bali  with your girlfriends? It will either get postponed, or prepare for the entire group not to make it out of the groupchat. And if this sounds like you, you’re not alone. Those “adulting” milestones our parents achieved by 30 feel increasingly like relics from a different economic era.

There’s a weird silver lining though. With traditional success markers feeling so out of reach, many of us are rejecting them altogether. The survey found that 60% of Gen Z and Millennials are now prioritizing quality of life over accumulating savings. It’s not that we don’t want financial security, but instead now need to do what we need to do to adapt to a world where the old roadmaps to get there don’t work anymore.

This shift in priorities doesn’t come without anxiety, particular in professional settings. Many of us avoid discussions about raises, despite inflation continuing to outpace wage growth in many sectors. Only one in five express confidence in salary negotiations, revealing a disconnect between financial needs and workplace communication skills.

Even at work, the financial conversations just aren’t happening. I’ve personally sat through annual reviews where I couldn’t bring myself to ask for what I deserved (or I’d asked previously and given up), terrified of seeming ungrateful in an unstable job market. The survey confirms I’m not alone with other young adults avoiding salary discussions entirely, and only one in five feel they can confidently negotiate pay. The security of having a job at all feels too precious to risk.

Meanwhile, we’re desperate for better financial education. Sixty percent of Gen Z want more financial literacy resources. I relate hard to this – I’m in my 30s and still Google basic investment terms if I see something in the news or online that I’m not familiar with. Especially as I’ve been tracking what’s going on in the stock market. The difference between an IRA and a 401(k)? I finally figured that out last year. Nobody taught me this stuff, and I’m still catching up.

And the definition of “making it” is changing too. That 60% prioritizing quality of life over savings? I see it every day. One of my friends turned down a higher-paying job with an unnecessarily long commute to keep working remotely from her small apartment in the heart of D.C.. Another friend chose part-time work to pursue art that barely pays but fills his soul. We’re deciding that maybe success isn’t a mortgage and a 401(k), but actually having enough time and mental space to actually enjoy your life (sounds like such a novel idea right?).

It’s unfortunate, because unlike our parents’ generation, many of us will be working in some capacity until we’re 80. That’s why the younger workforce is focused on building careers that blend passions and paychecks in ways our parents never imagined possible. That’s the only way we’ll be able to adapt and survive during a long career journey.