Money management tips for Gen Z: How to avoid a 'quarter-life crisis'

If you're in your 20s and feeling the pressure of bills, rent, rising prices and an endless stream of ‘perfect’ lives on social media - it’s not just you. According to a recent article in The Mirror, a so-called ‘quarter-life crisis’ is hitting Gen Z hard, with many young people struggling to keep up with the cost of living.

But it’s not all doom and gloom.

The good news? You’re part of a generation that’s not afraid to face these challenges head-on - and even get creative about it. From TikTok budgeting trends to honest conversations about money with friends, Gen Z is flipping the script on financial wellness.

Here are some smart, real-world money tips to help you not just survive but thrive.

Set savings challenges

Saving money doesn’t have to be boring. In fact, 74% of Gen Z are jumping on social media-driven savings challenges, according to the NatWest Savings Index.

Whether it’s a ‘£1-a-day’ challenge or trying out a ‘no online shopping’ month, setting small, fun goals can be an effective form of motivation.

Try no-spend days

No-spend days are a great way to hit pause on unnecessary spending. The idea is simple: pick a day (or two) each week where you don’t spend a penny - no takeaways, no online shopping, no impulse buys.

It’s not about being overly strict. It's about taking a mindful break and realising how often we spend out of habit. Try planning fun free activities on those days - walks, cooking at home with mates, or binging a series you've been meaning to catch up on.

Loud budgeting is in

If you’ve ever felt awkward turning down a night out because of money, you’re not alone. But Gen Z is starting to talk about money more openly. The NatWest Savings Index found 86% of the younger generation are comfortable discussing their finances.

This may be partly down to a trend called loud budgeting. This involves being upfront when you can’t afford to spend with zero shame. In fact, being open about your financial situation can make your friends respect your boundaries - and maybe even inspire them to do the same.

Set financial goals that motivate you

Let’s face it, it’s easier to save money when you’re excited about where it’s going. Whether it’s a dream trip, a new laptop or just building an emergency fund so you can breathe easier - set goals that mean something to you.

Having a clear target keeps you motivated, especially when the temptation to spend hits.

Prioritise paying off debt

Being in debt is expensive, so bringing your borrowing down to the bare minimum is a great way to improve your financial health. Start by tackling high-interest debt first (that’s usually credit cards), and always make at least the minimum payments on everything else.

Spend intentionally

Every swipe, tap, and click adds up. Being intentional with your spending means asking, “Is this something I actually want or need?” before handing over your card.

Try tracking your spending for a week and see where you can cut back without feeling like you’re missing out.

Celebrate your wins (and treat yourself, sometimes)

Budgeting isn’t about cutting out all joy. If your plan is too strict, you’re more likely to give up. So when you hit a savings milestone or manage to stick to your budget for a month - celebrate it!

Treat yourself in a small way - maybe it’s a nice coffee, a night out or that item you’ve had your eye on. Financial wellness isn’t about guilt - it’s about balance.