A stable job and a nice home have become less accessible to young Americans. Many are taking new paths to pursue their dreams.
Young people "still want in on the American dream," but "there is no single pathway anymore," one strategist said.
Brennan Drolet, a rising college senior studying finance, is spending this summer interning at a bank in Massachusetts. Given his parents' distrust of the stock market, his choice of job wasn't obvious.
Drolet's father works in education and his mother works at a salon. Neither is too interested in investing.
When he was 16, Drolet became curious about the stock market. "I read some books on it, and then I started investing based off that interest," he said. Drolet asked his father to help him open a brokerage account, which the teen funded with earnings from jobs.
For the last three years, the 21-year-old has managed to beat the market with a mix of individual stocks, exchange-traded funds and mutual funds, he said. "It's a good climate for [investing]," he said. But his parents, who are in their early 50s, have told him that he will "lose all" his money, that "the market's going to crash," and that he will be "in a terrible situation."
Drolet, who like many young Americans began investing at an earlier age than previous generations did, doesn't see it that way.
While his parents prioritized spending on experiences, such as concerts or small trips, Drolet said even as a young person with student loans, he prefers to save and invest his money as a way to gain "flexibility" when it comes to big life decisions in the future.
"Retiring early sounds great. Buying a house sounds great," he said. He feels that by investing now, "there's a lot more potential to have that money grow," which could give him the option to stop working sooner.
Drolet is part of a wave of Americans whose approaches to financial security are changing in an economy where traditional milestones of financial success - such as having a steady, long-term job and owning a home - have become a challenge for a growing share of the population, including middle-income households. But as these milestones have moved out of reach, investing has become much more accessible, providing a new path forward.
More on this: Teens turn to investing to build a new path to the American dream. 'My goal is to live comfortably.'
Amid the instability sparked by the pandemic and the rise of artificial intelligence, many members of Generation Z are expressing greater interest in investing than older generations did at their age, as well as in having multiple income streams and making financial choices that provide flexibility - or a degree of financial freedom - in the face of uncertainty.
Many are trading in the traditional dream of a hard-earned retirement, spent in a home that took decades to pay off, for one of financial flexibility that is not anchored to homeownership or to holding down a single long-term job.
Nearly two-thirds of Gen Z-ers say their generation faces tougher economic circumstances than previous generations. More than half feel they need to take more risks - including gambling and buying cryptocurrencies - to reach their financial goals, according to a new report by the Urban Institute.
"Today's young adults are navigating a complex financial landscape with caution, creativity, and ambition" and "are embracing a mix of traditional and speculative financial strategies to build wealth and financial security during challenging economic times," the report says.
Young people "still want in on the American dream" of having personal freedom, said Shikha Jain, a partner at consulting firm Simon-Kucher and the author of a recent study on how different generations view the American dream. But "there is no single pathway anymore."
"The democratization of investing, the access to information on investing for beginners or investing for people who don't have a lot of capital" is shifting how young people are pursuing financial independence, Jain told MarketWatch.
And the shift is happening quickly: According to the World Economic Forum, about one-third of Gen Z-ers - the oldest of whom are on the verge of turning 30 - started investing while they were in college or in early adulthood, double the rate millennials were doing at that age.
Related: Kids as young as 13 can now trade stocks without a parent's approval. How to be smart about it, according to experts.
As the economy shifts, young people are considering their opportunities. Half of Gen Z-ers surveyed by LendingTree (TREE) said they've seriously considered starting a business in the past 12 months, twice the average rate.
Outside of retirement, "financial freedom is a fairly new concept," Emil Barr, a 23-year-old entrepreneur, told MarketWatch. While still in college, Barr started Step Up Social, a marketing firm, and Flashpass, a workforce-development platform, and he quickly built a net worth of roughly $25 million. "When my parents were picking their jobs, no one was talking about that," Barr said.
Barr, who continues to work despite his high net worth, described financial freedom as having enough resources "to do whatever you want, and what brings you the optimal amount of happiness."
As the idea that the true value of money is the ability not just to consume but to have control over your life pervades social media and financial books, young Americans' views on wealth are shifting.
From the archives (December 2024): Generation Z thinks it needs $500,000 a year to succeed. Here's what that says about our economy.
In his 2025 book "The Art of Spending Money," author Morgan Housel wrote: "'Rich' to me used to mean having lots of fancy toys. Now it means not being hurried, spending time with my family, control over my schedule, and intellectual independence. That's true rich. Doing life my way."
Financial independence, homeownership optional
Among the biggest shifts is young Americans' approach to homeownership, a longstanding symbol of security and success in the U.S. As of 2024, 78% of Americans ages 65 and older owned their homes, making primary residences the second-largest asset category for these older households after a catch-all category labeled "other financial assets," according to Federal Reserve data.
While Gen Z-ers remain interested in owning, nearly half see renting as a strategic long-term lifestyle choice, compared with 29% of baby boomers, according to the Simon-Kucher study. Renting, for instance, provides greater flexibility to move for new opportunities, or to invest in the stock market rather than save for a down payment.
These days, even buying "a starter home just seems so daunting," Gene White, a 27-year-old who works in communications, told MarketWatch. He currently rents a one-bedroom apartment in Chicago.
The typical starter home (one in the lowest third of values in a region) is now priced at more than $198,000, and starter homes costing $1 million can be found in 242 U.S. cities, according to a new Zillow report. In some cities, first-time buyers typically put down more than 20%.
Homeownership was the key to financial success for many Americans in the past, White said, but he sees that level of investment in a single asset, like a home, as "volatile and risky." Among homeowners, primary residences account for a median 45% of net worth, according to Pew Research Center.
"I think Gen Z would have it right, myself included, to spread ourselves in terms of not putting all of our eggs in one basket," White said.
He plans to invest the bulk of his next bonus.
A focus on self-reliance
Gen Z-ers are also less likely than older Americans to see stable, long-term employment as an avenue for success.
Recent college grads are having a harder time finding employment than in previous years. More than two in three Gen Z-ers surveyed by Wells Fargo said they see business ownership as part of the American dream, because it "would allow them to control their own destiny."
More on MarketWatch: Employers to college students: Never mind that 4.0 GPA. Go out and get a summer job.
Barr said that while Gen Z-ers' parents may hold the view that starting a business "is not a 'real job,'" he thinks "most high schoolers know what being an entrepreneur is and how much money you can make."
Gen Z-ers are more likely than older Americans to start businesses through their own passion projects or side hustles, rather than acquiring them.
Others in that generation, meanwhile, are considering entrepreneurship as a response to insecurity in the workplace: About one in three Gen Z-ers are worried they will lose their jobs in the next year - double the average rate who think that.
A new literacy for finances
Despite growing access to financial information, Gen Z-ers are still in the early stages of acquiring financial knowledge.
"By most measures, they are the most market-fluent generation America has ever produced," according to a Morningstar report, yet surprisingly, they score lower than other generations in financial literacy, "undermining the group's long-term performance potential."
Many gamble and use new forms of debt, such as buy-now-pay-later loans. In the Urban Institute poll, 22% said they currently own or have owned cryptocurrency and 17% said they have bet on sports in the past 12 months. They also report being widely affected by financial stress.
Still, many remain optimistic about the unique opportunities available to young people today. Gen Z members are twice as likely as other generations to use AI to come up with ideas and find information about money, and to rely on social media such as YouTube, TikTok, Instagram and online communities for financial information.
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July 09, 2026 08:00 ET (12:00 GMT)
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