Gen Z began building wealth earlier than previous generations, but many young adults say that head start has not translated into financial stability.

The youngest generation in the workforce reports starting to build wealth at an average age of 19, according to U.S. Bank’s 2026 Wealth Survey, which surveyed 5,000 U.S. adults from June 15 through July 1. Millennials said they began at 25, followed by Gen X at 29 and baby boomers at 32. That places Gen Z’s starting point 13 years earlier than baby boomers’.

The survey also found that building wealth has not necessarily meant achieving financial security. Fifty-six percent of Gen Z respondents said they had done everything “right” but still were not where they had hoped to be financially. Sixty-two percent said they struggled to make financial progress.

Homeownership remains a major goal for both Gen Z and millennials. The two generations are the most likely to identify buying a home as a top five-year financial priority. Yet 29% of Gen Z respondents and 26% of millennials said they had given up on homeownership for financial reasons, according to the survey.

The findings point to broader economic pressures rather than a failure by young adults to follow traditional financial advice. For employers seeking to attract and retain younger workers, the difficulty of reaching conventional milestones has become an important consideration.

Housing costs widen the gap

Housing is one of the clearest examples. In 2025, the median existing single-family home sold for 4.7 times the median household income, according to the Harvard Joint Center for Housing Studies’ The State of the Nation’s Housing 2026 report. The ratio was 4.1 in 2019 and averaged 3.2 during the 1990s.

The affordability gap is also reflected in the age of buyers. The median age of a first-time homebuyer reached an all-time high of 40, according to the National Association of Realtors’ 2025 Profile of Home Buyers and Sellers. In the 1980s, the median age was in the late 20s. That median is more than double the age at which Gen Z reports starting to build wealth.

With homeownership increasingly out of reach, many young adults are directing more money toward the stock market instead. Some parents are also choosing to help their children with down payments rather than college savings, according to reporting cited by Fortune.

Education costs have risen as well. Published in-state tuition and fees at public four-year colleges averaged $5,940 per year in 1995-96, measured in today’s dollars. By 2025-26, the figure had reached $11,950—roughly double—according to the College Board’s Trends in College Pricing and Student Aid 2025 report. From 1994 to 2024, median family income increased 39% after inflation over a similar period—a gain that trails tuition’s roughly twofold rise by a wide margin.

Transportation is another unavoidable expense for many workers. About seven in 10 U.S. workers drive alone to work, according to the U.S. Census Bureau. The average new vehicle sold for $50,562 in September, just $52 below the all-time record, according to Kelley Blue Book.

Used vehicles have also become more expensive. The average used car was listed for $27,239 in August, up 7% from a year earlier and the highest level since December 2022, according to Cox Automotive.

Housing, education and transportation were once widely viewed as attainable milestones. For many Gen Z workers, they increasingly feel like luxuries associated with earlier generations.

Employers reconsider benefits

As traditional milestones become harder to reach, many Gen Z workers are evaluating potential jobs by asking whether a position will help them make financial progress. Some employers are responding by changing how they structure benefits.

One option involves matching student-loan payments with 401(k) contributions. Since 2024, the SECURE 2.0 Act has allowed employers to treat employees’ student-loan payments as eligible for retirement-plan matching contributions. Workers paying down debt can therefore receive a retirement match without making their own contributions to the plan. The IRS guidance outlines the provision.

A traditional 401(k) match, however, still assumes employees have enough money left after essential expenses to contribute. Amy Spurling, founder and CEO of Compt, which operates employee stipend programs, told Fortune: “A 401(k) match is great in theory, but a 23-year-old paying $2,400 in rent on an entry-level salary can’t, through no fault of their own, afford to contribute enough to earn it, so the benefit skips the people who need it most.”

Spurling said employers should consider that issue during open enrollment, when workers select benefits. “If your employees under 30 are skipping the match and ignoring the perks, that tells you something isn’t working,” she said. How the next open enrollment plays out may indicate whether benefits design is keeping pace with the financial realities younger workers describe.

Gen Z began building wealth at 19. The challenge for employers is demonstrating that the effort can still lead to meaningful financial progress.