In Gen Z Relationships, Money Matters More Than Ever

By: Anneken Tappe · December 19, 2023 · Reading Time: 2 minutes

Affordability Crisis

Money and romance can be an awkward mix, but being open about finances is often crucial.

Gen Z couldn’t agree more: Financial compatibility is the new romantic chemistry for this generation of young Americans, who believe that being on the same page about money is the single most important aspect of whether a relationship can work out.

Money Matters

Nearly half of Gen Zers believe financial compatibility is key, and ranked higher than physical or intellectual compatibility. This compares with more than a third in the wider population of U.S. adults, per a survey by Northwestern Mutual.

This strong preference to talk about money before talking about the future comes as younger demographics are increasingly delaying or skipping traditional milestones, such as getting married and having children, due to the high cost of living.

Cost of Living

Much of Gen Z has entered the workforce during the pandemic years of soaring inflation, and high interest rates, the aftermath of which is still not quite over.

High borrowing costs, a structural undersupply of housing units, high costs of childcare, pricey rents as Americans returned to cities, even trends like “fun-flation”, which describes the inflation of entertainment costs, have colored the cost of living for young adults. It has become more expensive than ever to hit major financial milestones in America. So it figures that any prospective partners should be on the same page about finances.

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