What Gen Z trends say about the economy

The affordability crisis is here to stay and financial stability is in vogue. Whether it’s wearing a quarter-zip sweater or the latest 401(k) mullet hairstyle, young men in particular are leaning toward styles that convey a sense of financial responsibility.

“Men are not only finding a voice, they’re finding their place through these trends,” said Thomai Serdari, marketing professor and director of the Fashion and Luxury Program at New York University’s Stern School of Business.

Clothes, hairstyles, music, and even underwear are often considered leading economic indicators. For example, former Federal Reserve Chairman Alan Greenspan believed that men’s purchasing habits regarding underwear were a good indicator of whether consumer discretionary purchases were declining.

Experts say these new trends indicate how consumers feel about the U.S. economy and job market.

Even the old 401(k) is cool now.

These employer-directed retirement savings plans have been steadily gaining momentum for years, but in 2026 they’re capitalizing on the zeitgeist.

According to a new survey from NerdWallet, 15% of adults wouldn’t date someone who didn’t have a retirement account.

According to Vogue magazine, the 401(k) mullet, a more grown-up version of its furry predecessor, is gaining popularity.

Unlike previous versions, “the 401(k) haircut is very restrained,” Serdari said.

“We’re finally moving away from the era of high-tech entrepreneurs who can drop out of college and still make a lot of money,” she said. “People are slowly coming back to being more equipped selves with the goal of finding work.”

Men “want to emulate the lifestyle they want to achieve and in doing so attract success,” Serdari said.

Social media seems to agree. Rapper T-Pain posted a photo of himself on Instagram in mid-November with the caption “401k and quarter zip,” and it received over 122,000 likes.

Ever since recent graduate Jason Gyamfi started the “quarter zip movement” in a Nov. 5 TikTok video, the sweater itself has become a symbol of how to look like an up-and-coming professional.

“What started as a simple style change has become a message that encourages people to grow, reinvent themselves, and have confidence in everything they do,” Gyamfi wrote in a Dec. 10 LinkedIn post about his viral video, which has been viewed more than 31 million times.

The rise of artificial intelligence, in part, has reduced job prospects and “many young people feel like they’re at a disadvantage,” Serdari said. “They don’t have the access to the security that their parents and grandparents had,” she says.

With today’s labor market softening, the traditional “path to a 401(k) and a stable job with prospects for success and economic growth…is not guaranteed,” she said.

“What used to be boring, a 401(k), is unavailable and therefore sexy,” Serdari said.

Of course, a conservative view of wealth is not new.

Certain types of “quiet luxuries” have been on the rise since the coronavirus pandemic has led to more economic fragmentation among Americans. In the years that followed, the so-called K-shaped economy allowed the wealthiest Americans to live even better off than before, thanks in large part to stock market gains and higher home values.

Even when most Americans were living paycheck to paycheck, the trend toward luxury goods took hold in a big way after consumers discovered Gwyneth Paltrow’s courtroom aesthetic during her 2023 ski accident trial.

A year later, TikToker Megan Boni posted a video in which she sang about trying to find a “financial person” with a “trust fund,” and it quickly went viral. That video has been viewed over 60 million times.

Since then, the consumer economy has become increasingly polarized. Federal Reserve data shows that the wealth of those at the top continues to grow rapidly as the value of their investment holdings increases. The top 10% of Americans own more than 87% of corporate and mutual fund stocks.

“People are looking for the secret to belonging as they navigate a world that is increasingly rich and poor and exclusive,” Serdari said.

Many of these workers are now exhibiting “positive savings behavior,” said Kirsten Hunter Peterson, vice president of workplace thought leadership at Fidelity Investments, the nation’s largest provider of 401(k) savings plans.

Overall, retirement account balances, which fell in early 2025 due to market volatility, are at a record high, according to the latest data from Fidelity.

Near the end of last year, the average 401(k) balance reached an all-time high of $144,400, according to research from Fidelity.

“When it comes to young workers, many of them have a bad reputation (for retirement savings), but the numbers tell a different story,” Hunter Peterson said.

While other studies have pointed to a generational retirement savings deficit, “Gen Z is saving faster and at higher rates than previous generations,” she said.

In part, Hunter Peterson said, Gen Z tends to share financial information and tips on social media, and in some cases, it’s a very effective way to communicate the benefits of saving for retirement. Still, there’s no substitute for a personalized recommendation from a vetted financial advisor, she added.

“When taking action, especially for young investors, it’s important to listen to trusted sources,” she says. “There are many finfluencers in the world who do not have professional qualifications.”

Subscribe to CNBC on YouTube.