The Minimum Wage Gen Z Needs To Live Comfortably in America
Gen Zers have high expectations when it comes to the salaries they want to make right out of college, as well as the income they need to live a comfortable, middle-class lifestyle.
Two surveys showed that Gen Z, adults between the ages of 13 and 28 right now, believe they need an income of at least six figures.
We reviewed surveys and research to find the minimum wage Gen Z thinks is required to live comfortably in America.
Find Out: Income Needed To Crack the Top 10% in Every State
Find More: Meet Your Complete Financial Toolkit. Budget, Build Credit and Track Your Money — All In One Place
Many Gen Z Workers Believe They’re Not Getting Paid Fairly
One survey from ResumeTemplates.com, which polled 1,750 full-time employees between the ages of 17 and 27 — most with fewer than four years in the workforce, revealed that 87% do not believe they are being paid fairly.
Of those who said they are underpaid, roughly one-third said they deserve an annual salary of $70,000 to $100,000, Newsweek reported. Twenty percent said they should be making more than $100,000. Just 6% of Gen Z polled make more than $100,000 currently, while 79% make less than $60,000.
“[W]ith inflation surging over the past few years, it’s not surprising that many young workers feel financially squeezed, even if they’re making what used to be considered high salaries. The cost of living has changed, and so have expectations,” Julia Toothacre, chief career strategist at ResumeTemplates.com, told Newsweek.
However, Gen Z also acknowledged that they play a role in their financial struggles. One-third said they could find a cheaper place to live, and 20% admitted to spending more than $500 per month on non-essentials.
Some Gen Zers Don’t View a $74K as a Middle-Class Salary
In a separate survey for Newsweek, analysts at Redfield & Wilton Strategies found that Gen Z was the least likely of all demographics to view $74,000 as a middle-class salary.
The Pew Research Center defines middle class as Americans who made between $38,133 and $114,400 in 2023. But only 41% of Gen Z polled said they view someone making $74,580 — the center of that range — as middle class.
Boomers were the most likely to believe that $74,000 constitutes a middle-class salary. However, the times these cohorts grew up were very different, socially and economically.
“When looking at the cost of living, especially housing and higher education, many in Gen Z recognize that they need more money to live comfortably, as compared to previous generations,” Miranda Marquit, a consumer advocate and longtime money expert, told Newsweek.
“A $74,000 income might seem good, but often it just feels like we’re struggling to stay afloat in a tough financial situation,” Adam Hardingham, the managing director of digital marketing company Rivmedia, also told Newsweek.
He pointed out that Gen Z also has a different view of middle class. It’s not just about having a nice house and car, but building a sense of financial stability, affordable healthcare and paying off student loan debt.
What Is Gen Z Doing About Their Financial Situation?
The generation’s high expectations for pay doesn’t mean Gen Z is just accepting their financial fate. One study from Kantar found that 40% of Gen Z workers have a side hustle for extra income.
Meanwhile, the 2024 Expat Report from Greenback Expat Tax Services found that 45% of Gen Z expats who moved from the U.S. did so for a lower cost of living.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: