What happens when a generation is raised on economic promises that never materialize? Gen Z may want to ask their older siblings, the millennials, how that turned out, as the Great Recession of 2008\u2014and the ensuing \u201cjobless recovery\u201d\u2014left millions of altered lives, if not dashed dreams, in its wake.\u00a0<\/p>\n
But as the oldest Gen Zers approach the 30-year-old benchmark, the economic habits of a generation who was born during a financial regime change are looking increasingly different from those of the generation that lived through it.\u00a0<\/p>\n
The zoomers double as the so-called \u201cdoom spenders<\/a>,\u201d dishing out hundreds of dollars on concert tickets or international travel, entrenching the \u201cYOLO economy\u201d that emerged in 2021 amid the meme-stock craze. Gen Zers average $94,101 in personal debt<\/a>, the highest of any generation and far more than millennials ($59,181) and Gen X<\/a> ($53,255).\u00a0<\/p>\n This could be easily written off as the financial mismanagement<\/a> of youth, but taken as a whole, Gen Z\u2019s outlook<\/a> on the economy is at once a rejection of conventional wisdom and a deep, almost subconscious absorption of the commodification of everything. Economist and author Alice Lassman<\/a>, a (British) Gen Zer herself, has written for Business Insider about<\/a> her personal disillusionment after her stint at Columbia led to a verbal, later rescinded offer to be an economist at USAID. She calls Gen Z\u2019s approach to economic life \u201cdisillusionomics,\u201d or a way to cope with an uncertain and mystifying financial future.\u00a0<\/p>\n Lassman wrote about her theory for the Guardian<\/a> in October 2025, and told Fortune that she came up with the term herself. \u201cI actually was sitting for a while with trying to understand this broad trend, or this broad glue that was connecting together a lot of the disparate Gen Z trends that we were seeing.\u201d She said she thinks much of the way people relate to her generation has to do with this underlying economic phenomenon.<\/p>\n Gen Z\u2019s rejection of traditional financial prudence is deeper than coming of age during an economic crisis, like their millennial counterparts, she told Fortune in an interview. With some members still in middle school, they are much younger than millennials were in 2008 and are more skeptical<\/a> about their financial futures, according to the Institute of Politics at Harvard Kennedy School.\u00a0<\/p>\n \u201cThe economic system their parents are talking to them about isn\u2019t really going to work out for them in the same way,\u201d Lassman explained. Her first taste of economics was the 2008 financial crisis, which hit when she was in what the British call primary school. \u201cSince then it\u2019s been kind of a perpetual crisis,\u201d she said. Gen Z has internalized a mismatch between what they were told about how the economy works and what they\u2019ve experienced much more deeply than is often appreciated, she argued.\u00a0<\/p>\n \u201cI think there\u2019s this general sense of kids at school and \u2026 the content that they\u2019re being exposed to, that things aren\u2019t fitting, that like the economic system they think their parents are talking to them about isn\u2019t really going to work out for them in the same way,\u201d Lassman said.\u00a0<\/p>\n Lack of faith in the future promised to them<\/p>\n Familiar markers of stability, such as homeownership, family and retirement feel unattainable. The unemployment rate for 16-to-24-year-olds reached<\/a> 10.8% last year compared to 4.3% overall. One-third of Gen Z says<\/a> they believe they\u2019ll never own a home, and many are planning to forgo<\/a> having children. Disillusionment, to Lassman, explains why Gen Z is no longer playing by the rules as they grow in their distrust<\/a> of institutions like government, media, and business.<\/p>\n While alluding to \u201ceconomic nihilism,\u201d the term coined by entrepreneur Demetri Kofinas and made famous by the influential Substacker Kyla Scanlon, Lassman said her theory of disillusionomics has to do with the \u201clate-stage commodification of anything.\u201d Riffing off how Airbnb<\/a> pushed a model of turning a spare room into more income, she said \u201cGen Z has taken that logic to the max\u201d with their habit of \u201chouse hacking,\u201d or renting an apartment larger than they need, chopping it up, and renting out rooms. She sees a generation constantly looking to diversify their sources of income, and seeing content creation as a kind of passive income.\u00a0<\/p>\n \u201cWhen every conventional path narrows, people start to look for alternatives. And in practice, that has meant turning toward the few places where a real upside still appears possible, even if the risks are high.\u201d Scanlon recently wrote<\/a> in the Wall Street Journal. \u201cWhen people start treating the economy like a game, it\u2019s a sign that the traditional ways of winning no longer feel real.\u201d<\/p>\n Lassman noted that Gen Z is more likely to use buy-now-pay-later services than traditional credit cards, affording them flexibility as they commodify their lives. Despite their affinity towards BNPL, Gen Z seems to be, in line with Lassman\u2019s theory, spending less in general and spending differently than older generations.\u00a0<\/p>\n \u201cYou know, Gen Z\u2019s so interesting,\u201d PwC\u2019s global retail leader Kelly Pedersen<\/a> told Fortune, expressing surprise at how little they\u2019re spending as they age. He estimated that Gen Z spent 10% to 12% less in the recent holiday season than the previous year. \u201cFor their spend to decrease as much as they say it was going to decrease is pretty significant,\u201d she said.\u00a0<\/p>\n \u201cThat generation should be increasing spending more than anybody,\u201d Pedersen said, \u201cbecause they have the highest income growth out of any generation,\u201d but it\u2019s just not happening. He added that while it was \u201cpretty surprising\u201d to see this, any close watcher of Gen Z would expect it as this approach to spending is \u201cpretty pervasive in terms of that generation and some of their habits \u2026 what we found overall is that the generation is very, very value-conscious.\u201d<\/p>\n Pederson alluded to \u201cdupe culture,\u201d or Gen Z\u2019s love of cheaper alternatives to luxury goods. \u201cWe find that if that generation doesn\u2019t see the value there very quickly, they will very quickly trade down into a dupe, right, or into something that is like what they want, but maybe isn\u2019t as expensive. So it\u2019s all about value, value, value to that generation.\u201d Gen Z disillusionomics, in other words, means they quite literally see past the illusion of luxury fashion into the value they can get from an object. Sustainability and longevity also play a big role in how Gen Z spends their money, he added.<\/p>\n Trouble in paradise<\/p>\n Gen Z also displays some \u201chostile\u201d attitudes, Lassman said, being increasingly prone to shoplift in person or online<\/a> because they feel like it is justified<\/a> to steal from corporations that can absorb the loss. Others fall into zero-sum thinking<\/a> about resources and an increasingly competitive labor market.\u00a0\u00a0\u00a0<\/p>\n They are also more likely to experience age and money dysmorphia<\/a>, Lassman said, a need to feel like they are always catching up. Short-lived financial trends and coping mechanisms such as treat culture<\/a> and fast-yield dividend investments are material and psychological \u201csurvival strategies\u201d to manage life in an affordability crisis.\u00a0<\/p>\n \u201cPeople are thinking that they\u2019ve lost time, so we\u2019re all kind of panicked about where things are going, also living in a very, very volatile world, politically, socially, economically,\u201d she said.\u00a0<\/p>\n Economic nihilism has been another strong reaction to an economy some say does not reward long-term planning. By gamifying their finances with prediction markets, sports betting and cryptocurrency, Gen Z is creating new opportunities to build lives for themselves in the system they don\u2019t believe serves them.<\/p>\n Lassman told Fortune that she doesn\u2019t think Gen Z is even really aware of how it\u2019s acting, economically, but they are shaping the 21st century as they grow up. \u201cA lot of it is just kind of reactive,\u201d she said. \u201cAnd so they\u2019re kind of defining their own income streams.\u201d<\/p>\n