More than half of gen Z feel pressured to 'fake it till they make it' financially, says TD survey

Generation Z is using a “fake it till you make it” strategy to appear more financially stable as they head into the real world after graduation, according to a recent survey by TD Bank Group.

More than half of the survey’s gen Z respondents (53 per cent) said they felt pressure to maintain “a successful image” on social media , despite nearly 65 per cent saying they believed they were falling behind their peers financially.

“The pressure to look like they have it all together — for friends, family and social media — only adds to the real financial challenges they already face in today’s tough economy,” said Kristy Irwin, product group owner, youth & student at TD.

Forty-seven per cent of gen Zers pointed to the rising cost of living as their biggest barrier to financial success, while 36 per cent cited low income.

Members of generation Z fall between the ages of 18 and 28 years old. Nearly half of the approximately 500 gen Zers who took part in the survey are relatively new to the professional workforce.

According to the survey, gen Z define financial success as “present-day freedom, stability and quality of life,” and they are twice as likely to want to save money for a “better lifestyle” than older generations: ( millennials , 10 per cent; generation X, five per cent and baby boomers, four per cent).

The high cost of living has made it more difficult for consumers (particularly young professionals) to save for milestone investments like homes.

Still, TD reported that 19 per cent of the gen Zers surveyed are pursuing long-term milestones such as homeownership, and 17 per cent say they are seeking financial independence.

The survey said that 66 per cent of generation Z felt pressured to meet these goals by a certain age.

“Gen Z is under constant pressure to appear financially secure as soon as they begin their careers, while many are struggling behind the scenes with stress, debt and uncertainty,” said Irwin.

Fewer than two in five gen Z Canadians surveyed said they felt in control of their financial situation, and 64 per cent said they feel stressed about their finances multiple times a week — more than any other generation.

In comparison, fifty-five per cent of millennials said they experience financial stress multiple times a week, as did 42 per cent of gen Xers and 27 per cent of boomers, TD said.

“The mounting pressures don’t mean that there aren’t real ways to make progress towards your financial goals,” said Irwin. “Even taking small steps can add up to big wins in both the near-term and the long run.”

Seventy-three per cent of gen Z Canadians are also worried that a single financial misstep will set them back in the long term.

The TD Bank survey was conducted online between July 28 and 29, with a sample of 3,037 Canadians. Of those surveyed, about 500 were gen Zers aged 18 to 28, nearly half of whom have been in the professional workforce for one to five years.