How Brands Can Promote Economic Mobility Within the Gen Z Workforce

Written by DSS Intern: Christopher Lall

More often than not, when I talk to my peers about things that involve money, the excitement and breadth of our conversation wanes significantly. This, on its own, isn’t a big deal; people are entitled to enjoy whatever conversation they want. But I think the real issue comes from how notably uneducated many people in my generation (Gen Z) are about all things financial, which is scary considering how deeply it impacts one’s life. This article, I hope, sheds light on why this lack of education is so detrimental, but more importantly how brands could play a small part in eliminating a big problem.  

Gen Z’s spending power currently sits at over $400 billion. It’s predicted that by 2030, that number could reach nearly $3 trillion in the U.S., (yes with a T). With their spending power set to balloon and their increasing presence in the workforce, Gen Z is impacting the economy more than ever. 

And yet, they’re still not hopeful about their economic outlook. When polled by DoSomething Strategic, 80 percent of Gen-Z respondents felt as though they would be less economically secure than their parents. They are disillusioned with the current state of affairs, feeling they’ve been dealt a tough hand. Skyrocketing home prices have far outpaced wage growth, along with the prices to rent a decent apartment. College debt is weighing heavily on young people, whose degrees are not worth as much as they once were. Despite being urged to work harder, pay their dues, and trust that wealth and solutions to their concerns will eventually come, they’re skeptical. “Don’t worry, us older adults have it under control,” they’re told. But young people aren’t buying it—they’re standing firm and demanding change. 

Brands that are listening will recognize these concerns as an opportunity to support Gen Z’s economic mobility, thus keeping this talented, young generation invested in growing within their company. Here are three ways to get started:

Closing the Financial Education Gap

Research suggests Gen Z  has a financial literacy rate of just 38 percent – the lowest among adult generations. Gen Z is aware of this — 74 percent of them acknowledge that they are inadequately educated in finance. Of the financially literate, they credit their education to their schools and families, but none to brands.

By integrating financial education programs, such as interactive lectures and workshops, companies can offer a slew of resources to strengthen Gen Z’s financial education. Additionally, hosting candid conversations with financial advisors or AMA-style talks with industry experts can provide valuable insights and practical advice. Topics can range from employee matching to vested stock options to smart retirement strategies to budget management: all critical elements of financial understanding. 

Financial education not only benefits Gen Z personally,  but it also creates a workforce that is more motivated and knowledgeable. When employees are provided a culture of learning that supports their upward economic mobility, they will be more satisfied and engaged with the work they are doing. 

Outside of what your organization can do to improve your workforce’s financial literacy, find inspiration from the key players in the industry that are disrupting traditional pathways into economic mobility and education. Rapunzl is a high school and college student-targeted platform that teaches personal finance with a real-time stock simulator, standards-aligned curriculum and national scholarship competitions. The app teaches individuals to trade virtual stocks at no cost, while demystifying other complex financial topics through a user-friendly curriculum that’s accessible to educators. Thus, members of Gen Z can engage in an educationally enriching topic via a fun and accessible method. 

Centering Gen Z Financial Concerns

Apart from educating young people on financial literacy, brands can support the voices of young people through collaboration. Our “What Gen Z Wants: Brands & Social Impact” report revealed that only 13 percent of Gen Z feel as though they are adequately involved in shaping brands’ social impact efforts, compared to 42 percent of brand leaders who believe the voices of Gen Z are included enough. By bringing them to the table to tackle pressing issues, people and culture leaders can cultivate a more active and participatory employee base. 

To achieve this, organizations can facilitate regular forums where Gen Z employees discuss social and economic issues with senior leaders at the company. These forums can cover topics such as entrepreneurship, emerging career pathways, and the future of work, allowing Gen Z to share their perspectives and ideas directly with decision-makers. Brands can go one step further by going from discussion to action. 

Collaborative projects such as co-designing products or services with Gen Z input can support their growth within an organization. By involving young people in the creation process, brands not only create pathways for product innovation but also equip Gen Z with new professional skills and experiences. This engagement can lead to enhanced economic mobility since Gen Z would have practical insights and opportunities for advancement within the industry — while also creating more inclusive products and services. DoSomething Strategic often supports brands in developing youth advisory councils that do everything from steering grantmaking funds to shaping the user experience of a new business offering.

Embracing Youth-Centered Partnerships

Partnering with budding youth-targeted or youth-led businesses is also a ripe area for brands to champion youth voices. Organizations such as Junior Achievement or NFTE (Network for Teaching Entrepreneurship) promote economic mobility through mentorship opportunities and business skills training. By connecting youth with or supporting these organizations financially, brands can help cultivate the next set of business leaders.

Gen Z is full of aspiring entrepreneurs, with a staggering 75 percent voicing interest in being business owners. Collaborating with or investing in Gen Z-led businesses can promote youth entrepreneurship while allowing brands to benefit financially from their success. Brands can host or contribute to events where young entrepreneurs pitch their businesses and award them financial investment based on the merits of their ideas. Afterward, brands can continue to mentor and foster these ideas until they are ready for launch, ensuring that their industry remains innovative and growing. By leveraging these partnerships, brands create a dynamic ecosystem of bright business minds.

Your Time to Promote Economic Mobility

Promoting the economic mobility of your Gen Z workforce is a strategic imperative for brands that seek to thrive and adapt in an ever-changing market. For the most socially engaged generation in history, we must remove the economic blockers that prevent young people from using their power to change the world. Brands owe it to them to ensure they make informed, educated financial decisions. Providing Gen Z with financial education and partnering with youth-centered organizations will ensure that everyone benefits from Gen Z’s untapped potential in the workforce and in the world.