The rising cost of living, stagnant wages, and ongoing economic uncertainty are forcing Gen Z to make unprecedented sacrifices. Traditional milestones such as homeownership and international travel are increasingly out of reach, as daily expenses and mounting financial pressures dominate their priorities. This article examines the everyday sacrifices now prevalent among young adults in 2025, offering insight into the shifting landscape of their goals and aspirations.
1. Homeownership Dreams Deferred
Skyrocketing home prices and rising mortgage rates have made purchasing a home nearly impossible for many members of Gen Z. According to the National Association of Realtors, first-time buyers now face record-high price-to-income ratios, rendering traditional down payments unattainable for most. As a result, many are choosing to rent indefinitely, stay with family, or delay moving out on their own. This trend is not only postponing independence but also hindering opportunities for wealth accumulation. Read more in the NAR’s latest report.
2. Skipping International Travel
International vacations are increasingly out of reach for Gen Z, turning what was once a rite of passage into a rare indulgence. According to Morning Consult, younger adults are more likely to skip travel altogether due to financial limitations. The rising cost of airfare, hotels, and overall economic uncertainty has led many to opt for local getaways or road trips—if they travel at all. For many, exploring the world has become an unaffordable luxury rather than an expected life experience.
3. Delaying Marriage
Marriage is becoming a lower priority for Gen Z as financial insecurity and soaring wedding expenses cause many to postpone or forgo tying the knot. Data from the Pew Research Center reveals that this generation is less likely to view marriage as essential, often choosing to cohabit or remain single. Instead, many are focusing on advancing their careers and building savings, reflecting evolving attitudes toward relationships and long-term commitments in the face of economic pressures.
4. Living with Parents Longer
More young adults are choosing to live with their parents as a practical way to cut costs and manage financial burdens. According to the U.S. Census Bureau, nearly half of Americans aged 18-29 lived at home in 2023—a rate not seen since the Great Depression. While this arrangement offers relief from rent and daily expenses, it often comes at the expense of independence and can delay the transition to full adulthood and self-sufficiency.
5. Cutting Back on Dining Out
Gen Z is increasingly forgoing restaurant meals and takeout in favor of cooking at home. According to the National Restaurant Association, younger consumers are curbing discretionary spending on dining out as inflation and higher menu prices squeeze budgets. Instead, many prioritize grocery shopping and meal prepping to make their money go further. This trend reflects a growing emphasis on financial discipline and resourcefulness as daily living costs continue to rise, fundamentally changing dining habits for this generation.
6. Postponing Having Children
Rising costs associated with raising a child are prompting many Gen Z adults to delay or even reconsider parenthood. The USDA now estimates that bringing up a child to age 18 exceeds $300,000, making family planning a daunting financial decision. This reality is reflected in falling fertility rates, as reported by the CDC, with many young adults citing expensive housing and healthcare as primary obstacles. The decision to wait or opt out of having children is becoming increasingly common among this generation.
7. Skipping Higher Education
The soaring cost of college tuition and the burden of student loans are causing many Gen Zers to rethink the value of a traditional four-year degree. Data from the National Student Clearinghouse shows a decline in undergraduate enrollment, with more young adults choosing trade schools or entering the workforce directly. As the return on investment for a college education faces increased scrutiny, alternative career paths are gaining traction, reflecting a significant shift in educational priorities for this generation.
8. Forgoing Car Ownership
As vehicle prices and insurance premiums continue to climb, many Gen Z adults are choosing to live without cars. Instead, they increasingly rely on public transportation, biking, or rideshare services to save money and avoid debt. According to a J.D. Power report, there has been a notable decline in first-time car buyers under age 30. This shift reflects both economic pressures and changing attitudes toward mobility, with practicality and affordability taking precedence over traditional car ownership.
9. Minimalist Lifestyles
Minimalism has become a popular choice among Gen Z, with many opting to own fewer possessions and focus on meaningful experiences instead. This lifestyle is both a response to financial pressures and a cultural movement, fueled by social media communities such as #minimalism. By reducing material purchases, young adults aim to lower expenses and minimize stress. According to the Wall Street Journal, decluttering and living simply are rapidly gaining traction as practical solutions to economic and personal challenges alike.
10. Forgoing Private Healthcare
The escalating costs of private health insurance are driving many Gen Z adults to rely solely on public health plans or forgo coverage entirely. According to The Commonwealth Fund, uninsured rates among Gen Z are higher compared to older generations. To save money, many young adults also skip routine and preventative healthcare, increasing the risk of future health issues. This sacrifice highlights the difficult trade-offs faced when balancing essential needs against financial limitations.
11. DIY Mental Health Solutions
As therapy and counseling become increasingly expensive, Gen Z is turning to self-help and digital resources to address mental health needs. Many utilize apps, online communities, and mindfulness practices as accessible alternatives to traditional therapy. According to a report by the American Psychological Association, there is a significant rise in the use of digital mental health tools among young adults. Peer support and self-guided strategies are becoming the norm, reflecting a pragmatic response to financial and systemic barriers to care.
12. Postponing Major Purchases
Purchasing big-ticket items such as new furniture, electronics, or appliances is increasingly being postponed by Gen Z. Many are opting for secondhand goods or turning to resale platforms to stretch their budgets. According to the Consumer Financial Protection Bureau, there’s been a marked increase in the use of ‘buy now, pay later’ services as young adults seek more affordable options. This trend reflects a broader shift toward financial caution and creative solutions for managing household needs amid economic uncertainty.
13. Side Hustles as a Necessity
Supplemental income from side hustles has become a lifeline for many Gen Z adults. Gig work, freelancing, and online businesses are often necessary just to meet basic expenses. According to a Bankrate survey, more than half of Gen Z reports having at least one side hustle, with many juggling multiple streams of income to make ends meet. This reliance on extra work highlights the growing financial pressures and the adaptability required to survive in today’s challenging economic climate.
14. Limited Socializing
Rising costs have pushed Gen Z to rethink how they socialize, with expensive nights out at bars, concerts, or paid venues becoming less common. Instead, many are opting for low-cost gatherings at home or participating in free group activities. According to an Eventbrite study, this generation spends less on traditional nightlife and prefers affordable or no-cost ways to connect with friends. This shift reflects both budgetary pressures and a creative approach to maintaining social connections without breaking the bank.
15. Renting, Not Owning, Pets
The financial demands of pet ownership, from food and veterinary care to added pet rent, have made full-time pet companionship less feasible for many Gen Zers. Instead, fostering animals or engaging in short-term pet-sitting has become more popular. The American Pet Products Association reports a noticeable uptick in these temporary pet care solutions among young adults. This approach allows for animal companionship without the long-term financial commitment, reflecting a practical adaptation to current economic realities.
16. Limited Savings and Retirement Planning
Retirement savings are increasingly being neglected by Gen Z, as day-to-day expenses and financial challenges take precedence. Data from Fidelity reveals that fewer than half of Gen Z workers contribute regularly to retirement accounts. As a result, many young adults anticipate working well beyond the traditional retirement age. This trend underscores the impact of financial insecurity on long-term planning and highlights the tough decisions facing a generation striving to balance present needs with future stability.
17. Avoiding Credit Cards
To steer clear of debt traps and sky-high interest rates, many Gen Zers are choosing to avoid credit cards altogether. According to Experian, this generation holds the lowest average credit card balances, favoring debit cards and digital wallets for everyday spending. Increased financial literacy efforts and caution about borrowing are driving this trend, as young adults seek to manage their finances responsibly and avoid the pitfalls that have affected older generations.
18. Opting Out of Trendy Tech
Staying current with the latest gadgets and tech trends is becoming less of a priority for Gen Z as financial pressures mount. Instead of frequent upgrades, many are choosing to keep their devices longer or purchase refurbished electronics at lower prices. According to a Deloitte survey, this generation is significantly more likely to prioritize savings over having the newest technology, reflecting a pragmatic approach to spending in an era of economic uncertainty.
19. Skipping Gym Memberships
Rising gym membership costs have led many Gen Zers to seek more affordable fitness alternatives. Instead of pricey club subscriptions, young adults are turning to at-home workouts, free fitness apps, and outdoor activities to stay healthy. According to the International Health, Racquet & Sportsclub Association, there has been a noticeable decline in new gym memberships among younger demographics. This trend highlights both economic caution and a shift toward flexible, cost-effective wellness routines.
20. Lowering Expectations for the Future
Ongoing economic instability has forced many Gen Zers to reevaluate their hopes for lifestyle, wealth, and long-term security. According to Gallup polls, this generation is less optimistic about achieving upward mobility than those before them. Instead of chasing lofty aspirations, many are focusing on building resilience, adaptability, and practical skills to navigate uncertainty. This adjustment in outlook reflects the broader impact of financial pressures and shifting realities in today’s world.
Conclusion
The sacrifices outlined above reveal how persistent economic challenges are transforming Gen Z’s goals and everyday choices. Whether postponing traditional milestones or redefining success itself, these adjustments reflect a generation determined to adapt amid ongoing uncertainty. As these financial pressures continue, the resulting shifts in priorities and behavior may have enduring effects on both society and the broader economy. For a deeper understanding of these generational changes, see this Brookings analysis.
