Gen Z Men vs. Women: Who Saves, Invests and Spends More?
Gen Z men and women aren’t always aligned on money — and a recent Bank of America report highlights just how wide the gap can be. When asked how they would use an extra $300 each month, Gen Zers revealed striking differences surrounding whether they prioritize paying down debt, investing for the future or spending to improve their lifestyles.
Here’s a closer look at where those priorities diverge.
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Gen Z Women Prioritize Paying Down Debt
If given an extra $300 per month, Gen Z women (33%) are more likely than men (27%) to use the money to pay down debt, suggesting a stronger focus on reducing financial burdens early.
“Paying down debt is a great use of additional funds,” said Ashley Ross, chief client care officer at Bank of America. “Debt grows over time with interest, so the quicker you tackle it, the less you ultimately pay.”
For many, the benefit isn’t just financial.
“There's a real emotional benefit, too,” Ross said. “Carrying debt can be a significant source of stress, and paying it down can bring real peace of mind.”
Gen Z Men Are More Likely To Invest Extra Income
Men, meanwhile, are more inclined to think long term. The survey found 32% of Gen Z men would invest an extra $300 each month, compared with 21% of women.
"Investing extra money is also a great use of extra funds, especially if your bills are covered and you have some savings in place," Ross said. "It's one of the most effective ways to grow wealth over time."
Investing can help Gen Z work toward meaningful, longer-term goals, whether that's buying a home, planning for a family or saving toward retirement. However, sometimes traditional savings should be the priority.
“The key difference between saving and investing comes down to the timing,” Ross said. “Saving is ideal for an emergency fund or near-term goals. Investing has the potential to generate higher returns and better keep pace with inflation over the long run.”
Still, with investing, risk is always part of the equation.
“Unlike a savings account, there’s no guarantee of returns, and you can lose the principal,” Ross said. “The potential rewards are greater, but so are the risks.”
Gen Z Men Are More Likely To Spend Extra Funds on Entertainment
Spending habits show another divide. Twenty percent of Gen Z men would spend an extra $300 a month on entertainment, versus 13% of women.
"Spending on entertainment can be rewarding and healthy — so long as your essentials are covered first," Ross said. "Everyone deserves to enjoy their money."
As Gen Z takes on more financial independence, maintaining healthy habits is key, she noted.
"This includes having a handle on your full financial picture: how much money is coming in, how much you are spending on necessities like rent and groceries, [and how you are] making progress on savings goals," Ross said. "Then, determining what’s left over."
Ross recommended the 50/30/20 rule as a starting point when creating a budget. Of your monthly take-home pay, roughly 50% should go to needs, 30% to wants and 20% to savings or debt payments.
"How you spend that 30% is entirely up to you," Ross said. "But the goal is to make sure your essentials and savings goals are taken care of first, then enjoy what remains without guilt."
Finding the Right Balance
Ultimately, neither men nor women are inherently "right." The key is balance — covering essentials, reducing debt when needed and investing for long-term growth. How Gen Z chooses to use that extra $300 should come down to where they are in their financial journey.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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