For so many young adults these days, the so-called American Dream is like a moving target if not an illusion. Increasing housing prices, flat wages, and a system that frequently appears stacked against them have left a vast majority of Gen Z wondering whether the traditional playbook of college, 9-to-5, house, and retirement is still a viable option. Spoiler: it isn’t for most.
But this is not a tale of defeat. From coast to coast, Gen Z is getting around the system, stitching together side hustles, adopting new technology, insisting on financial literacy, and inventing novel ways to create wealth and security. They’re not pursuing success as their parents did; they’re creating their own.
Here’s a closer look at the ambitious strategies, attitude changes, and nitty-gritty tools enabling this generation to convert disillusionment into action in 2025.
1. Side Businesses Are Getting Serious
Ditch the side hustle stereotype of weekend hobby projects. Almost two-thirds of 18- to 35-year-olds have begun or plan to begin a side hustle, with 65% looking to continue through to 2025. They’re approaching these endeavours as startups mission-driven, technology-facilitated, and minimal. As Andy Kurtzig, CEO of Pearl.com, explains, Gen Z is taking the same tools corporations use to cut jobs and flip the script to create opportunities for themselves.
AI takes centre stage. From rapid prototyping to machine automation, it’s being leveraged by young entrepreneurs to fuel growth. But the hustle isn’t necessarily about tech; it’s about autonomy, flexibility, and creating something of one’s own. The reward? Low failure rates (a mere 3% report flopping) and profitability within six months are often.
2. Financial Literacy Is a Survival Skill
With the Gen Z average financial literacy score being only 38%, the lowest of any generation, knowledge gaps are a genuine risk. Authorities such as Dr. Billy Hensley of the National Endowment for Financial Education emphasise that “financial education should begin early these are not electives. They’re survival skills.”
States are catching on: 16 now require standalone personal finance courses for high school graduation. Interactive programs like Intuit’s Hour of Finance Challenge are making money lessons engaging, digital‑first, and relevant. For a generation that’s 62% reliant on social media for money advice, accessible, credible education is the foundation for long‑term stability.
3. Rethinking Homeownership
Home ownership is a fantasy for millions, but it’s slipping away. At mortgage rates remaining at 6–7% and the median sales price reaching $426,900 in 2024, it’s at a 40‑year low. Wharton’s Susan Wachter says the standard 3:1 income‑to‑home‑price ratio has inflated to 5:1 or more in employment‑adorned markets.
Rather than throwing in the towel, Gen Z is seeking options: single-family rentals in decent school districts, accessory dwelling units to generate additional income, and hybrid ownership models such as co-ops. As Wachter puts it, “Renting can give you access to opportunity”, a mindset that keeps options and career advancement on the table.
4. Smarter Investing, Less Guesswork
Whereas 60% of Gen Z invests beyond retirement vehicles, merely 17% of Americans are confident in the workings of the stock market. Fintech has democratized investment, but far too many platforms cash in on uncertainty, encouraging high-risk YOLO gambles. Mission-oriented platforms such as dub seek to reverse this by allowing users to replicate trades from qualified investors, no hype about meme-coin, just clear methodologies.
The objective? Democratise the type of knowledge that was previously within the reach of only the rich. As its creator states, “You no longer need wealth to build wealth.” Starting with only $100, this strategy combines accessibility with long-term vision.
5. Social Media: Double‑Edged Influence
Gen Z’s half credit Instagram, TikTok, and YouTube with creating their perception of the American Dream. The positive side? Inspiration, community, and exposure to financial influencer access. The negative side? Endless upward social comparison makes individual goals seem out of reach.
Developmental psychologist Dr. Yalda T. Uhls cautions that “upward social comparison… can often make you feel worse because you feel that you can never get there.” The solution isn’t logging off completely, it’s creating feeds for learning, not for jealousy, and tempering online stories with actual-world financial victories.
6. Alternative Investments and Savings Habits
Gen Z is more likely than previous generations to invest in cryptocurrency or precious metals, echoing digital convenience and distrust of traditional finance. Meanwhile, they’re also careful about saving: the majority save 6–10% of income, and they’re five percentage points less likely than the population at large to save nothing.
This divides some who emphasise hyper-growth, others who sustain saving, and demonstrates a generation trying out varied methods to insulate themselves from uncertainty.
7. Values Over Vanity Metrics
Surveys indicate that 64% of Gen Z would prefer a higher quality of life to more money in the bank. That is to say, prioritising mental wellness, flexibility at work, and interesting projects ahead of pursuing a higher paycheck. Old standbys such as marriage or owning a home fall lower on the list than independence and happiness.
This values-based approach doesn’t shun wealth; it recasts it. Success is not just measured in assets, but in options, and in creating a life that is felt to be sustainable and self-determined.
The American Dream is not dead; it’s changing. For Gen Z, the road ahead isn’t one of forced fits into old templates but creating a future that integrates financial stability with individual purpose. Through the adoption of savvy tools, continuous learning, and adjustable definitions of success, this generation is not only coping with a flawed system, they’re creating a better one.
