Gen Z may not be able to afford a house or the cost of living—but give it 10 years. They’re on track to gain $36T and become the richest generation

Gen Z is living the paycheck-to-paycheck twenties lifestyle—splurging on high rent costs and dishing out 99-cent ramen noodles. Yet in just a decade, they’ll be the most powerful economic force.

Only two years ago, Gen Z had amassed $9 trillion in income, but by 2030 they’re expected to have $36 trillion. And by 2040, that number rises to $74 trillion. A 2025 Bank of America report showed this will place them as the richest—and largest—generation by 2035, as Gen Z is expected to grow to 30% of the global population in the next decade. 

Gen Z’s projected economic dominance can feel worlds away from their current economic situation. But there might be light at the end of the tunnel as they climb up the corporate ladder and take on their family’s inheritance.

Gen Z’s current economic woes: no houses and no kids 

Many young people are strapped for cash, stepping out of college and into an uncertain job market. Gen Zers are having to turn down job opportunities because they can’t afford commuting expenses. They’re spoiling their pets in lieu of having children, which have become too expensive to raise, and abandoning the pipe dream of purchasing a home—unless they receive an inheritance. 

Gen Z is also struggling with holding down a job. Young households receiving unemployment surged 32% year over year in February, according to the report. But it’s not for a lack of trying, despite the naysayers. The report said Gen Zers are “overeducated and underemployed,” and amid a tough white-collar labor market, unemployment for new entrants was up over 9% year over year in February. This results in Gen Z taking gigs that they may be overqualified or not the right fit for, which can have long-term career ramifications. 

Yet in just 10 years, this could all flip on its head. The Bank of America report noted that wage growth for Gen Z increased by 8% year over year in February. A part of this bump can be attributed to the generation finally entering the full-time job market, leading to higher wages. But the biggest contributing factor in their financial boost is the Great Wealth Transfer, expected to hit Gen Z bank accounts in the years to come.

The great wealth transfer into the pockets of Gen Z

With the odds stacked against them, Gen Z’s best bet on living comfortably is coming into wealth. 

About $84 trillion is anticipated to pass down from seniors and baby boomers to Gen X, millennials, and Gen Z by 2045, according to a 2021 report from Cerulli Associates. Most of the money will be handed over to Gen X and millennials—but 38% of Gen Z still anticipate they will receive an inheritance, according to a separate survey.

Gen Z’s share of the pie, alongside their stark wage increases, will lead to a ballooning of their economic power. Even in the current day, the young generation is a force to be reckoned with. They have higher discretionary spending habits compared to others, and their global spending is expected to reach $12.6 trillion by 2030, compared to $2.7 trillion in 2024. Their spending growth per household has also been stronger than the overall population, including both necessity and discretionary spending, according to the report. 

There’s a few reasons why Gen Z spends so much of their money: They’re pouring funds into their high rents and education costs; “doom spending” on essentials and small luxuries, instead of saving up for bigger investments that feel unattainable; and trying to escape their high credit card and student loan debt. 

But businesses should take note: Once Gen Zers have money to burn, they’ll be in the driver’s seat of the economy. Companies are already taking note of their preferences: luxury, e-commerce, wellness and beauty, and pets. Gen Z is also deeply invested in fintech, new media, gaming, and big tech, according to the Bank of America report. Their tastes will shape which business will thrive in 2035. 

“It’s likely they will be among the most disruptive generations to economies, markets, and social systems,” the Bank of America report says. “Whether it’s due to changing diets or reduced alcohol consumption or saving and housing, Gen Z will redefine what it means to be a U.S. consumer.”

A version of this story originally published on Fortune.com on March 17, 2025.

This story was originally featured on Fortune.com