One-Third of Gen Z Have Side Gigs to Bolster Financial Security

Millennials were first the punchline of work productivity jokes; now, Gen Z has inherited the dubious honor. Data shows that this type of humor may have been misguided.

Last week (Apr. 11), the Wall Street Journal profiled a smattering of young adults breaking the stereotypes of Gen Z shirking work. Included were an entrepreneur, software engineer and supply chain planner, all under 30 and determined to put in the long hours required of the “hustle” culture. As with previous generations of hard workers, this portion of Gen Z is driven by financial security.

And who can blame them? There have been more years of economic instability than pure growth for members of this generation, born between 1997 and 2012. (PYMNTS’ data only considers Gen Z adults.) Perhaps as a result, more than one-third of employed Gen Z individuals also have some sort of side job, per PYMNTS’ collaboration with LendingClub, “New Reality Check: The Paycheck-to-Paycheck Report.”

Side jobs described in the report include informal tasks and gig work; other forms of supplemental income include selling artisan or used products. These alternative income sources are often accessed through online marketplaces or via mobile apps.

It may be this slice of Gen Z that merchants, banks and others seeking to reach this age cohort may cater to first. If financial stability is this generation’s North Star, the cohort may likely be seeking financial advice from banks or FinTechs to best manage their money. This sort of advice, as well as related innovative tools, have demonstrated to be successful in retaining customer loyalty.

A recent example of FinTechs capitalizing on this consumer need came from Klarna partnering with the budgeting app, Buddy, aimed at the Gen Z demographic. The features let users check real-time account balances, monitor spending and set up payment reminders over one platform.

Generation Z overall is marked by an openness to digital innovations and high adoption of those they find beneficial to integrate into their daily lives, such as health-related wearables. The FinTech or other firm that can appeal successfully to both Gen Z’s openness to digital innovation and drive for success may pick up customers — for the long haul.

Despite its reputation, Gen Z has a fair share of members driven to work long hours in multiple roles to fulfill their dreams. This cohort, which is seeking financial security and particularly willing to adopt digital tools, may represent a prime opportunity for merchants and organizations offering innovations that appeal to both characteristics.