In this economy, Gen Z workers are stressed about making and saving enough money to afford the lives they want to live
MANILA, Philippines – As a working Gen Z Filipino, I feel anxious about money every single day.
Whenever I go out, I figure out the cheapest way to get to a particular place, and it often entails negotiating to meet up somewhere near a train station (God forbid I take a Grab). I’m trying to unlearn feeling guilty about spending money on food when I’m not at home (because I need to eat — I don’t want to make my stomach problems worse!). I’ve done the math to figure out how long it’ll take me to buy a place of my own here in Manila — and it’ll take me at least 200 months of saving (which is why I feel so hopeless).
I can’t deny that I have an unhealthy relationship with money. I catch myself comparing myself to people my age who make more money than I do, or who hit financial milestones that’ll take me at least five more years to accomplish. I often deny myself simple pleasures or little treats just because I’m worried about not saving enough for the future. I even risk letting my social life wither by avoiding social gatherings that I know will cost me a lot of money.
But I find comfort in knowing that I’m not alone.
I’ve had many conversations with friends my age about making and saving money, and we’re generally anxious and pessimistic. My friends who are in long-term relationships can’t even think about getting married because of how much it’ll cost them. Same goes for having kids down the line. I know several people who take on multiple side hustles just to make ends meet, so they don’t have to live paycheck-to-paycheck.
I dug a little deeper. I wanted to see if our worries about money resonated with other Filipinos our age. I spoke with an expert and financially independent Gen Z workers, did desk research, and conducted an online survey to understand why we’re scrambling to save enough money to afford everything we need, and the lives we want to live.
The culprit was, as expected, the Philippine economy, which has been terrible for the average Filipino worker in recent years.
Wages aren’t keeping up with inflation, which is what’s stressing us Gen Zs out. Prices soared after the 2022 Russian invasion of Ukraine, and inflation remains a top concern for the majority of Filipinos.
In fact, the overall state of the economy isn’t a problem for just the poorest of Filipinos. When The Nerve and Rappler conducted a survey on Gen Z Filipinos’ attitudes towards money and work, we found that Gen Z Filipinos across all income classes have a negative view of the country’s economy.
What’s especially sad is that real minimum wage rates haven’t budged much in the past decade. When you take inflation into consideration, the minimum daily wage rate for workers in the country’s capital only amounts to about P500. Provincial workers can earn much less.
It’s also common for young workers today to have more than one job to augment their income. Or maybe they don’t have a second job, but they might have a business where they sell clothes, bake desserts, or take commissions on the side. Even Gen Z Filipinos from wealthier households feel the need to maintain several sources of income.
Saving proves to be a problem for us Gen Zs, too, especially in the context of emergencies and other unforeseen expenses. I spoke to a Gen Z worker who had to set aside a chunk of his salary for insurance, and another worker who estimated her emergency fund was only good for one month. During the height of the COVID-19 pandemic, health and medical emergencies became a viral topic on social media among worried Filipinos.
Gen Z also gets a lot of flak from older generations who misunderstand work boundaries. You’ve probably heard that younger workers today “don’t dream of labor,” and that they’re more focused on earning enough money to enjoy the weekends instead. Work isn’t necessarily our number one priority anymore, because we understand that our personal lives and relationships are important, too.
But it would be unfair to characterize Gen Z individuals as people who don’t care about work at all. I consider myself to be a very career-oriented person. Many of my friends have big career ambitions, too. And we know what we want when it comes to a job.
Of course, salary and benefits reign supreme when it comes to the most important things Gen Z Filipinos look for in a job, with 3 in 4 including them among their top three factors. Other important factors include career growth opportunities, the type of work, and location.
But if you divide respondents by income class and look more closely, there’s a difference in priorities when it comes to choosing a job. Almost nine in 10 Gen Z Filipinos from middle income households chose salary and benefits as a top factor, compared to only one in two from upper income households.
Upper income Gen Zs can also afford to prioritize more intangible benefits. Having their personal values align with company culture ranked fifth among 10 given factors for upper income Gen Z workers, while the same factor ranked last for low income earners.
My friends often hear me whine and say, “Ang gastos mabuhay.” (It’s so expensive to live.) With how expensive everything is and how little we’re getting paid, all I want is for older generations to understand that our financial worries aren’t unfounded. – Rappler.com
This story was originally published on Rappler on August 21, 2024.
Decoded is a Rappler series that explores the challenges and opportunities that come with living in transformative times. It is produced by The Nerve, a data forensics company that enables changemakers to navigate real-world trends and issues through narrative & network investigations. Taking the best of human and machine, we enable partners to unlock powerful insights that shape informed decisions. Composed of a team of data scientists, strategists, award-winning storytellers, and designers, the company is on a mission to deliver data with real-world impact.