What Being Financially Stable Actually Looks Like in Your 20s and 30s
The Spring 2025 Harvard Youth Poll revealed that nearly half of Americans under 30 said they're either struggling financially or just barely getting by. And while 86% of young adults agree that financial stability matters, fewer than 56% believe they'll ever actually get there.
That isn't exactly surprising. According to JustAnswer finance expert Sanju Subnani, "Most aren't financially stable in their 20s — younger adults are still figuring out their careers post-graduation."
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But the expectation has always been that your 30s are when things click: better paycheck, more stability, clearer direction. Except that's not playing out the way it used to. For a lot of people right now, income finally rising in your 30s just means bigger expenses and higher-stakes decisions waiting on the other side.
Crushing student loan debt, stubborn inflation and a housing market that feels rigged against anyone under 40 have pushed Gen Z and younger millennials to stop chasing their parents' version of financial success and start building their own.
How the Definition of Financial Stability Has Shifted
Homeownership used to be the clearest marker of financial stability and adulthood. Owning a home in your 30s meant you were successful. But the current housing market has made that benchmark harder to reach.
A Redfin study reported by Yahoo Finance found that 57% of people in their mid-30s own a home today compared to 64% of Gen X and Boomers at the same age. And that gap is only going to widen.
While homeownership is still attainable, Gen Z seems to place less priority on it. “That idea has been challenged with the ability to work remotely, housing affordability and a generational shift in financial goals,” Subnani said.
Because of that, young adults are no longer looking to homeownership as a measure of stability. In fact, they're redefining what financial stability means entirely.
Enter: Soft Savings
While elder millennials embraced the FIRE movement (Financial Independence, Retire Early), Gen Z has largely moved in the opposite direction toward something called "soft saving," where creature comforts and quality of life come before maxing out savings accounts.
It’s the opposite of the conventional financial wisdom to “pay-yourself-first,” and it feels fully justifiable for younger Americans facing an uncertain and frustrating economic future.
The Prosperity Index survey by Intuit found that 73% of Gen Z would rather have a better quality of life than money in the bank. Translation: nearly three-quarters of Gen Z are prioritizing travel, social connection and things that make today livable over chasing long-term savings goals.
And that's not a bad framework. "Nice dinners, extra-long vacations, and buying nice things are great ways to gauge smaller financial successes," Subnani said.
And yet, close to half of Gen Z seems to have given up hope for a secure financial future. A TIAA survey found that 48% of Gen Z said global challenges make them want to live for today, with only 20% actively saving for retirement.
New Goals for a New Generation
“Being debt-free and being able to afford rent are some of the bigger markers of financial stability in this economy,” Subnani said.
A well-padded savings account and retirement fund may not be on the minds of Gen Z and younger millennials in their 30s for some time. But that doesn’t mean the younger generations lack financial direction. Their goals are just more honest and grounded in the current economic landscape.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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