Generation Z are banking on inheritance, but they will earn more than in their lifetime than their parents

And it is this quality of life among older Australians that causes intergenerational tension, in the face of the relentless torment experienced by younger Australians.

Worse, it is leading to a fundamental shift in mentality among young people. As a survey from Stake published last month 55 percent of Gen Z and 49 percent of Millennials now believe that what you inherit is more important than how hard you work.

Of course, this is not new. You don’t even have to go back a full century to find a time when the size of the family and inheritance you were born into predicted your success over your intelligence and work ethic. But a lot has changed since then (hello antibiotics, the internet, air travel, remote work, parental leave and Medicare).

So this turnaround in the mindset of young people begs the question: Are we raising a generation of financial nihilists who no longer see money the way their parents did?

With the oldest members of Generation Z turning 30 next year, they have a lot to worry about. As well as growing up in the midst of the Global Financial Crisis and the climate crisis, and almost always being the first generation to have instant access to social media and the internet, there is also a growing concern that those born between 1996 and 2012 will be the first generation to be worse off than their parents.

As the e61 Institute states last report, Will young Australians be better off than past generations? Wages for people under 30 have risen very little since the global financial crisis; Most of the income increase goes to people aged 40 and over.

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This lack of wage growth is exacerbated given the fact that higher education costs have risen by 30 percent over the past decade and that young workers bear much of the income tax burden resulting from class shifting and an aging population.

With such a Sisyphean future, are we really surprised that Generation Z has less savings not only because they earn less, but also because they spend more? After all, if you’ve been working hard for years, barely keeping your head above water, and with no prospect of financial relief anytime soon, wouldn’t you treat yourself to a vacation or some new clothes?

But here’s the thing: Despite all the negatives, and they are many, Generation Z also has many positives. It has the highest level of education, the highest labor force participation rate and better gender balance compared to previous generations.

Speaking of balance, unlike my millennial generation, which is known for record rates of workplace burnout, young people have a much better understanding of work-life balance than other generations.

Gen Zers are less likely to drink outside of work, use illegal drugs or break the law, and are more aware of the importance of physical and mental health.

And from a financial perspective, all that time spent on smartphones means they’re much more savvy about investing and are climbing that financial ladder earlier and in higher numbers than generations before them.

Perhaps the best news is that a particularly embarrassing adage applies perfectly here: according to the e61 report, good things really do come to those who wait; Generation Z is still on track to earn more over the course of their lives than their parents, but at an older age and in different ways.

This is wealth for young people; It will come from a mix of wages, investments, housing wealth and, you guessed it, inheritances. What your inheritance will look like and when it will arrive is something you can’t guarantee and should never demand.

Victoria Devine is an award-winning retired financial advisor, bestselling author and host of Australia’s #1 finance podcast. He’s after the money. He is also the founder and director of Zella Money.

• The advice given in this article is general in nature and is not intended to influence readers’ decisions about investments or financial products. They should always seek their own professional advice, taking into account their personal circumstances, before making any financial decisions.

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