Gen Z Redefines Major Life Events as Economic Pressures Mount

OMAHA, Neb. (WOWT) - Generation Z faces new barriers to achieving the American dream, with heightened prices and a changing workforce.

This can impact how many of them plan financially for their future and for big events, such as a wedding.

Phillip Sanberg and Sydney Riepe are newly engaged and planning a wedding in Omaha this fall.

“After he proposed, immediately I was like oh my gosh we’re going to have this huge wedding, it’s going to be in a ballroom. Then after a month of planning, I’m like, let’s just elope,” Riepe said.

Overwhelmed by choices and costs, while aiming to include their families, they decided on a mid-sized wedding. It’s a happy medium they hope will save them some cash.

“I’m stressed about how much money we’re going to spend. I mean, we’re going to have to be paying this off for a little bit. We’d love to be able to get a house, but housing is pretty expensive these days too. Now, with the wedding, it’s probably going to be wedding over house for the near-term,” Sanberg said.

Their wedding photographer, Julie Trinh, said many of her Generation Z clients are working to find financial compromise with an uncertain economic future.

“Everything has just kind of gone up tremendously after COVID. So, having a small courthouse wedding and eloping, or doing a destination wedding, or just having a more intimate wedding in town really helps the couples financially. Everyone sees investment different nowadays,” Trinh said. Trinh is the owner of Julie Trinh Photography.

Trinh said many of her younger couples would rather spend their money on customizations or creating special moments with close family and friends, instead of inviting more guests.

“300 to 400 guests is what I was used to. Now it’s more like 75 to 150. It’s much more intimate and they can really personalize the wedding and kind of go all-out with their budget, instead of having to spend so much on so many people,” Trinh said.

An Omaha financial advisor said he’s noticed a shift in spending habits among Generation Z.

“They seem to be a generation that’s looking to travel much sooner. We’re seeing this especially with the destination weddings and bachelorette parties, things like that,” Eric Faurote said. Faurote is a Financial Advisor with Edward Jones.

Faurote said there are new hurdles working against this generation. He said as prices go up, salaries for the young workforce often can’t keep pace.

“With the cost of living going up close to 20 percent the last three years, even sort of 3 to 4 percent raises, they went from having a budget surplus to often a budget deficit,” Faurote said.

Faurote said this can hinder how much money they can put aside for their future.

“The biggest thing that we are concerned about is, first and foremost, just the general debt load with them coming out oftentimes with significant student loan debt. Then, we throw a car payment on top of that. A lot of times that then delays saving for retirement,” Faurote said.

For many members of Generation Z, starting a new chapter in life means cutting costs.

“We’ve been really trying hard to cut expenses and pinch pennies. It’s been tough to say the least, especially with our spending habits. We’re trying to not go out to eat, not go out to happy hours, not go on trips that we like to do. So, it’s definitely taken effort,” Sanberg said.

Faurote said many clients are waiting until later in life to get married and have kids, if at all, and those decisions are often financially driven.

He recommends building a budget, putting money into retirement as early as possible, and prioritizing paying off debt and building savings with any extra funds.

“You need to have a plan, and you need to really understand what is it that’s really important to me, and how is it that I’m going to prioritize my finite set of dollars,” Faurote said.