Bank of America predicts that Generation Z (born roughly 1997-2012) is poised to become the wealthiest generation in history by 2035. Their projected wealth increase is nothing short of staggering.
A $74 Trillion Future?
According to Bank of America Global Research, Gen Z’s wealth is expected to explode by a massive 720% between 2023 and 2040, reaching a jaw-dropping $74 trillion. This is a dramatic jump from the current $9 trillion. This generation is also projected to be the largest global population cohort in the next decade, accounting for roughly 30% of the total.
Spending Powerhouse
Gen Z isn’t just accumulating wealth; they’re spending it. Bank of America’s data shows that their spending per household is growing faster than the overall population, with higher discretionary and necessity spending than the average consumer. By 2030, their global spending is projected to hit $12.6 trillion, up from $2.7 trillion in 2024. This massive spending power will significantly impact economies, markets, and social trends.
Higher Wages, Despite Challenges
Despite facing tough job market conditions, Gen Z is experiencing impressive wage growth. Bank of America’s data reveals that Gen Z wage growth was nearly 8% year-over-year in February—the highest among all generations and double the overall median. This is partly due to many entering the workforce for the first time.
The Great Wealth Transfer
The upcoming “Great Wealth Transfer,” where Baby Boomers pass down assets to younger generations, will further boost Gen Z’s financial prospects. This means Gen Z and Millennials will increasingly drive major spending and saving decisions.
The Bottom Line
Bank of America’s analysis, based on aggregated and anonymized transaction data, paints a picture of a generation on the verge of unprecedented economic power. While the future is always uncertain, the bank’s projections suggest Gen Z is set to redefine the landscape of consumerism and wealth in the coming decades.
