What Gen Z trends say about the economy

With the affordability crisis looming, financial stability has become fashionable. Whether it’s a quarter-zip sweater or the latest “401(k) mullet” hairstyle, young men in particular are gravitating towards styles that convey an air of financial responsibility.

“Men are not only making their voices heard, but they are also finding their place through these trends,” said Thomaï Serdari, professor of marketing and director of the fashion and luxury program at New York University’s Stern School of Business.

Clothing, hairstyles, music and even underwear are often seen as leading economic indicators. For example, former Federal Reserve Chairman Alan Greenspan believed that men’s underwear buying habits were a good indicator of whether consumers were making fewer discretionary purchases.

These new trends reflect how consumers feel about the U.S. economy and job market, experts say.

Old 401(k) is great now.

A new NerdWallet survey It found that 15% of adults wouldn’t date someone who didn’t have a retirement account.

According to Vogue “401(k) mullet” is gaining traction, being a more adult version of its furry predecessor.

Unlike previous iterations, “the 401(k) haircut is pretty limited,” Serdari said.

“We’re moving away from the time of the tech entrepreneur who ended up dropping out of college and still making tons of money,” he said. “People are slowly returning to a more compact version of themselves with the intention of finding employment.”

Serdari said men want to “imitate the lifestyle they want to achieve and achieve success that way.”

Social media seems to agree: When rapper T-Pain posted a photo of himself Instagram It garnered more than 122,000 likes in mid-November with the title “401k and a quarter zipper.”

Since recent graduate Jason Gyamfi started the “quarter zipper movement” November 5 TikTok videoThe sweater has become a symbol of looking like an aspiring professional.

“What started as a simple style change has evolved into a message that encourages people to grow, reinvent themselves and be confident in everything they do,” Gyamfi said. In a LinkedIn post on December 10, he wrote: About his viral video with over 31 million views.

With job opportunities dwindling, in part due to the rise of artificial intelligence, “many young people feel like the odds are against them,” Serdari said. “There is no way to get the security that their parents and grandparents had,” he said.

In today’s softening labor market, “the traditional path to a stable job with a 401(k) and the prospect of success and financial growth are not guaranteed,” he said.

“The 401(k), which used to be boring, is now out of reach and therefore sexy,” Serdari said.

Of course, the appearance of understated wealth is not new.

A form of “quiet luxury” has been on the rise since Americans’ economic circumstances have become increasingly divided in the wake of the Covid pandemic. In the years that followed, the K-shaped economy left the wealthiest Americans better off than before, after largely benefiting from stock market gains and appreciating home values.

The luxury trend took off in a big way when consumers took notice of Gwyneth Paltrow’s courtroom aesthetic, even as most Americans were living paycheck to paycheck. ski accident attempt In 2023.

A year later, TikTok user Megan Boni posted a video that quickly went viral in which she said she was trying to find “a guy in finance” who had a “trust fund.” This video has been viewed more than 60 million times.

Since then, the consumer economy has become even more bifurcated. Data from the Federal Reserve shows that the wealth of those at the top continues to grow faster as the value of investment assets increases. The top 10% of Americans hold more than 87% of company stocks and mutual fund shares.

“People are looking for a recipe for belonging and success in an exclusionary world where inequality between rich and poor is increasing,” Serdari said.

Many of these employees now exhibit “positive savings behaviors,” according to Kirsten Hunter Peterson, vice president of workplace thought leadership. Fidelity Investments is the nation’s largest provider of 401(k) savings plans.

Comprehensive, Retirement account balances, which plummeted amid wild market swings at the beginning of 2025, are at all-time highs, according to the latest data from Fidelity.

Near the end of last year, the average 401(k) balance reached a record $144,400. Fidelity found.

“Many have a bad reputation when it comes to young workers [on saving for retirement]But the numbers tell a different story,” Hunter Peterson said.

While other research points to retirement savings gaps across generations, “Generation Z is saving earlier and at higher rates than generations before them,” he said.

In part, Generation Z is more likely to share financial information and tips on social media, Hunter Peterson said, and in some cases, this is a highly effective way to convey the benefits of saving for retirement. Still, he added, there is no substitute for personalized advice from a vetted financial advisor.

“It’s important to listen to a trusted source when it comes to taking action, especially for young investors,” he said. “There are many ‘financial influencers’ who are not licensed professionals.”

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