Best High-Yield Savings Accounts for 2025

 

Introduction

Gone are the days when finance was all about checkbooks, bank visits, and complicated spreadsheets. In 2025, Gen Z—the generation born between the mid-90s and early 2010s—is turning traditional money habits upside down. From investing in crypto to monetizing side hustles, Gen Z is setting new rules. But how exactly are they doing it? Let’s dive in.

Who is Gen Z and Why Their Financial Behavior Matters

Gen Z now makes up over 30% of the global population, and their buying power is no joke—projected to cross $3 trillion in 2025. What sets them apart is not just age, but mindset. They're digital-first, socially conscious, and financially bold.

Financial Education via TikTok and YouTube

Instead of textbooks or school lessons, Gen Z in the UK is learning finance through creators like @thisgirltalksmoney and @pennies.to.pounds. These content creators break down complex topics like mortgages, credit scores, and investing into easy-to-digest videos.

Digital Banks and Fintech Are the New Norm

HSBC and NatWest? Too slow. Today’s Gen Z prefers neobanks like:

• Monzo
• Starling Bank
• Revolut

These offer instant notifications, spending summaries, savings pots, and zero paperwork. Financial control is literally in their hands.

Side Hustles and the UK Gig Economy

Whether it’s reselling trainers on Depop, freelancing on PeoplePerHour, or running a dropshipping site, Gen Z Brits are not relying solely on a 9-to-5. According to ONS, over 40% of UK adults aged 18-25 now have a side hustle.

Conscious Spending and Ethical Brands

From vegan fashion to carbon-neutral gadgets, Gen Z consumers in the UK are putting their money where their values are. They prefer brands like Patagonia, Allplants, and Octopus Energy—and even invest in companies that align with their ethics.

 Early Investing with UK-Friendly Apps

Investing used to be for older people. Not anymore.

UK Gen Z is using:

• Freetrade – commission-free investing in UK/US stocks

• Moneybox – round-ups and stocks & shares ISA

• Plum – automatic saving and investing

These platforms make it possible to start investing with as little as £1.

Building Credit from an Early Age

Credit isn’t something Gen Z is ignoring. Thanks to ClearScore, Experian Boost, and Karma Credit, young adults are now monitoring their credit reports and improving scores to prepare for future loans and mortgages.

Budgeting in Pounds with Smart Tools

Apps like Emma, Snoop, and HyperJar help Gen Z track subscriptions, control spending, and set monthly budgets. With rent, food, and bills rising, budgeting apps are now essential tools for financial survival.

Passive Income Over Paycheques

Gen Z in the UK is big on passive income—earning money while they sleep. Whether it’s through YouTube ad revenue, affiliate blogs, dividend stocks, or renting out gear via Fat Llama, they’re finding creative ways to earn without trading time for cash.

Financial Literacy via Podcasts and Communities

Podcasts like The Wallet and She’s On The Money UK are helping young people learn how to take charge of their finances. Financial content is no longer boring—it’s become binge-worthy.

Crypto Still Has a Place, but Caution is Growing

While crypto isn’t as hyped as in 2021, many UK Gen Z still invest small amounts in Bitcoin, Ethereum, or meme tokens—mostly through platforms like eToro, Coinbase, or Ziglu. But with more regulation on the way, they’re treading carefully.

Conclusion

In the UK, Gen Z is not waiting to "grow up" before mastering their finances. They’re budgeting smart, investing early, and creating multiple income streams—all while staying true to their values. If you're still relying on old money habits, it's time to catch up. Gen Z is already building the financial future, one pound at a time.

FAQs

Q1: What are the best investing apps for Gen Z in the UK?

Freetrade, Moneybox, and Plum are great for beginners and offer UK stock access and ISAs.

Q2: Can Gen Z in the UK build credit without a credit card?

Yes, using services like Experian Boost or even paying bills on time through Open Banking-linked apps.

Q3: Is crypto legal and safe in the UK?

Yes, but it’s regulated by the FCA. Only invest what you can afford to lose and stick to licensed platforms.

Q4: What’s the most popular budgeting app for Gen Z in the UK?

Emma and Snoop are leading, especially in managing subscriptions and budgeting by category.

Q5: Are side hustles taxed in the UK?

Yes. If you earn more than £1,000 from a side hustle annually, you must register with HMRC and declare it.

---