Why is it so hard for Gen Z to save money?
Every week, PhilSTAR L!fe explores issues and topics from the perspectives of different age groups, encouraging healthy but meaningful conversations on why they matter. This is Generations by our Gen Z columnist Angel Martinez.
The internet seems to have a knack for making the wrong people famous. Maybe the most insidious breed in my book is the out-of-touch hustle bro. Usually, a "self-made man" who proclaims he’s the second coming of Steve Jobs possesses a delusional belief in a meritocratic society. Poverty is simply the result of irresponsibility, they say. Put in the work today, be a millionaire like him tomorrow.
Such videos don’t end up on my feed unless they’re the subject of mockery. But in the instances I am forced to see them, I am filled with an unspeakable rage. I so badly want to tell them that it’s never that simple—that a WR Numero report says Gen Z is actually striving towards financial security and stability, as opposed to empty displays of luxury.
While we see the value of setting aside funds for a not-so-distant future, intention, however, doesn’t automatically lead to action. A 2025 study shows that Gen Z is "doomspending" rather than saving money, and that 47% of the respondents don't even have an emergency fund.
But it isn’t always our fault.
With a stagnant economy that compounds existing issues of under/unemployment in the country, Filipino Zers are full-fledged participants in the gig economy. A 2024 study shows that 53% of us actually prefer having multiple part-time opportunities rather than a single full-time job, potentially due to the flexible hours and high pay. But in the long run, “the lack of employee benefits, such as health insurance or paid leaves, could contribute massively to why they can’t save,” finance and sales coach Yel Oropesa tells PhilSTAR L!fe.
Further adding to our list of pay cuts is our duty to our families. Many of us are expected to contribute substantially to household expenses, even when we’re just straight out of college. Some are already tasked with being the breadwinner early on: research from Ateneo de Manila University finds that eldest children, in particular, feel a greater sense of responsibility to provide for their families. There’s nothing inherently wrong with this tradition, but Oropesa agrees that we’re “bound to face a level of financial shock as they assume the need to pay for everything, despite not having any wisdom on the need to save for anything.”
When nothing goes according to plan, it’s normal for us to grab on to anything that gives us a semblance of control—hence our growing consumerism problem. Traditional markers of success have never looked so fickle and far away. So, since we still don’t have the dream house, the healthcare plan, and the peace of mind that comes with them, let’s buy this cute lamp from the orange app or a brand new baby figurine for our growing collection. At least, we’re okay for the time being.
Oropesa, however, warns that treat culture can easily escalate into recklessness. “The ‘I deserve this’ or ‘self-love’ [mindset] is very abused at the cost of building one’s savings. What some Gen Z don't know is that dopamine, the hormone released by the brain when receiving rewards, is the highest only at the point of anticipation,” she explains. Whatever we check out doesn’t give us the same rush when it arrives at our door, hence the apt term buyer’s remorse.
While this couldn’t have solved every single problem I’ve laid out, learning early would have given us more confidence to navigate these crises. Despite taking up the Accountancy, Business, and Management strand in high school and graduating with a marketing degree, I only learned about crucial concepts like investing, budgeting, and saving in theory. What I would have given for more practical applications, or a final project that forced me to put away a certain amount.
In the absence of proper financial education, Gen Z has found ways to save in our own ways. TikTok-famous terminologies that might come to mind include "loud budgeting," or literally vocalizing intentions to save; "cash stuffing," or dividing disposable income into designated envelopes; and "no-spend challenges," or eliminating non-essential purchases for a certain period. Gamifying the process can be fun, but Oropesa stresses that nothing beats a sustainable routine.
“Financial wellness needs to be a priority. It has to be holistic and built into responsibility, because low financial security can lead to significantly lower work productivity,” which can lead to a vicious cycle. Rather than overwhelm ourselves with savings targets that aren’t commensurate with our earnings, we should focus on creating and nourishing the habit, even if we just start with a few hundred pesos.
Because though we try to deny it, the rainy days we are told to save up for are here—both literally and figuratively. (As long as we have public officials squandering our taxes, the floods will just keep on coming.) We may feel helpless in the face of it all, but if there’s one thing the hustle bros must have gotten right, it’s that we’re definitely not hopeless.
Generations by Angel Martinez appears weekly at PhilSTAR L!fe.