UK Generation Z is more optimistic than Baby Boomers

Generation Z in the UK appears to be more optimistic about their future compared to older generations, such as the Baby Boomers. Despite facing high living costs and a struggling economy, younger people aged 16 to 29 are less negative about their financial prospects. A recent survey showed a significant gap between the views of Gen Z and Baby Boomers regarding the economy. There was a 44-point difference in how they assessed the economic state and a 36-point difference concerning their own finances. The consumer confidence index also indicated that young people had a net positive score, while those over 65 reported a stark negative score. This optimism is surprising given that 25 to 34-year-olds have much less wealth than older cohorts. Experts suggest several reasons for this upbeat attitude. Many young people are less impacted by rising interest rates because they are less likely to own homes. They often have fewer financial responsibilities and live at home longer, which reduces their financial pressures. Additionally, cultural differences may play a role. Young people are influenced more by their personal circumstances than by negative news stories. This could explain their brighter outlook, as they generally expect to spend more in the upcoming months compared to older generations who are planning to cut back. Recently, consumer confidence in the UK showed slight improvement, reflecting this trend among younger consumers. Overall, while the economy faces challenges, Generation Z maintains a hopeful perspective about their financial futures.