Kyla Scanlon, a financial commentator and trendsetter on platforms like TikTok and Instagram, shares her insights on Gen Z's unique identity. She discusses the generational shift in political views, highlighting how many young people feel anxious about achieving the American Dream. The conversation touches on their relationship with technology, the tension between creativity and algorithmic pressures, and how economic challenges shape their perspectives on work and trust in institutions. Kyla also explores the fascinating concept of 'Fafonomics' in investment behaviors.
Generation Z's delayed milestones, such as marriage and homeownership, reflect increased anxiety and a shifting perception of the American Dream.
The COVID-19 pandemic fostered unique cohorts within Gen Z, influencing their trust in institutions and relationship dynamics with technology.
With a rise in high-risk financial activities, Gen Z is navigating an uncertain economic landscape, reflecting deeper financial nihilism and distrust in traditional pathways.
Deep dives
Delayed Adulthood Among Generation Z
Generation Z is experiencing significant delays in achieving traditional adulthood milestones such as dating, marriage, and homeownership. Unlike previous generations, many young people are living at home longer and are less inclined to enter long-term relationships or start families. This phenomenon is attributed to various psychological and societal factors, including heightened anxiety levels and shifting perceptions of the 'American dream'. Many individuals from this generation view their economic prospects as uncertain, which contributes to the postponement of these significant life events.
The Influence of COVID-19 on Generational Divisions
The COVID-19 pandemic has had a profound impact on the way Generation Z processes their environment and relationships. This group can be subdivided into cohorts that experienced different formative influences during the pandemic; those who graduated before it, during it, and after it. Each cohort exhibits a unique relationship with technology and societal structures, which has resulted in varying degrees of trust in institutions. The pandemic, coupled with a surge in digital interactions, has heightened feelings of disconnection and distrust.
The Rise of Fafonomics
Young people today are increasingly engaging with high-risk financial activities, described as Fafonomics—an approach characterized by a willingness to experiment with investments that may not have solid foundations. This inclination stems from a perceived lack of traditional economic pathways and the impact of chaotic market forces on their financial outlook. With increased participation in cryptocurrency, sports betting, and meme stocks, many feel compelled to take risks in order to navigate an unpredictable economic landscape. This behavior reflects a deeper sense of financial nihilism, where young investors feel that conventional financial wisdom has failed them.
Tech Anxiety and the Algorithmic Self
Generation Z faces unique challenges shaped by their constant exposure to digital technology, which has led to an prominence of social anxiety. The impact of smartphones essentially creates a new reality where relationships and self-perception are influenced by a digitally mediated existence. Young people are grappling with their 'algorithmic selves', where the pressures of online validation complicate their understanding of identity. This environment fosters anxieties and creates obstacles to meaningful, real-world connections, complicating their emotional and social development.
Institutional Distrust and Political Polarization
Generation Z exhibits a profound distrust in traditional institutions, which is influenced by perceived failures in governance and societal stability. Many young people question the efficacy of political institutions, viewing them as unable to address crucial societal issues such as the economy and social justice. This distrust is compounded by the pervasive influence of social media, where negativity and misinformation often dominate discourse. As a result, young individuals are becoming increasingly polarized in their political beliefs, often shifting towards more extreme positions as they navigate a complex socio-political landscape.
Generation Z, which was born between the late 1990s and the early 2010s, has a unique economic, political, and cultural identity. In the 2024 election, Gen Z shifted strongly to the right. They are less likely than any previous generation to expect they’ll achieve the American Dream. Most of Gen Z graduated into a pandemic economy or entered high school during the school shutdown years.They have record-high rates of anxiety. They use their phone ... a lot.
Defined by the forces of scarcity, phone-driven media, and global crisis, they are different. And their differences will drive the future of U.S. economics, politics, and culture.
Today’s guest Kyla Scanlon is 27 years old, making her an older Gen Z representative. As a financial commentator on TikTok, Instagram, and Substack, she’s coined several terms—like the vibecession—that have made their way into the New York Times and federal economic reports. For a long time, I wanted to have a conversation about young people that doesn’t make me subject to a bunch of Reddit memes of Steve Buscemi holding the skateboard asking, “how do you do, fellow kids?” I wanted to get somebody smart, who was a member of Gen Z, and who also had conducted their own surveys of Gen Z. I’m very honored to have Kyla tell me about how young people today think and what they want.
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