Study: Over 70% of Gen Zs identify travel as main motivation for work

Hong Kong's Gen Zs prioritise travel as a key motivation for work, while also emphasising the importance of autonomy and flexibility in achieving their life goals, a study finds.

Conducted by HSBC, the “HSBC One 2024 – Decoding Gen Z” study was conducted from June to July 2024, and surveyed 1,253 Hong Kong and Greater Bay Area (GBA) residents aged 18 to 34 to gain insights into their investment and lifestyle priorities. 

According to the study, 71% of Gen Z respondents have identified "travel" as their main motivation for work, surpassing home ownership (39%) and starting a family (34%). Over the past year, Gen Z respondents travelled an average of three times, spending around HK$35,000, or about 13% of their income.

Furthermore, 61% of respondents expressed that purchasing property feels "far-fetched" for them, indicating a preference for work that brings personal enjoyment, particularly through travel. With a "play hard, work hard" mindset, Gen Z seems to seize living in the moment more than other generations, according to the survey. On average, they spend almost 10% more on entertainment than other generations. 

However, this doesn't compromise their financial discipline; they save an impressive HK$6,014 each month, or 28% of their income, also the highest among all generations. As digital natives, 59% of Gen Z use tech tools to manage their daily expenses, which likely contributes to their strong saving habits.

Moreover, the study shows that Gen Z respondents kick off their investment journey at an average age of 20—eight years earlier than other generations. They are putting away about 19% of their income, mostly in HKD time deposits (54%), Hong Kong stocks (30%), and US stocks (22%). 

However, only 18% have diversified portfolios with three or more types of investment products. It seems they also struggle with investment knowledge – according to the survey, one in five Gen Z investors follow influencers or friends for tips. For those who haven’t started investing yet, a lack of familiarity with investment options is a common barrier. 

Additionally, the study finds that Gen Z tends to take a relatively reactive approach to health risks. Only 25% have taken the step to arrange health insurance for themselves. Interestingly, though, 35% would sign up for insurance plans for their pets.

Gen Z in the Greater Bay Area

On the other hand, the study looks into the lifestyle and investment priorities of Gen Z in the GBA. They save an impressive RMB$2,750 each month, roughly 29% of their income, demonstrating strong financial discipline. They typically start investing at age 21, with 34% holding funds and 18% holding gold in their portfolios.

Meanwhile, travel ranks as one of the top three goals among GBA Gen Z, with 48% prioritising it. However, home ownership remains their no.1 goal with 61% aspiring to own a home.

A significant number of GBA Gen Z are also planning for their financial futures, with 59% starting their financial planning and 19% focusing on retirement. In comparison, Hong Kong's figures are 40% and 12%, respectively.

Brian Hui, head of customer propositions and marketing, wealth and personal banking, Hong Kong, HSBC, said: "Lifestyle preferences and financial needs differ across generations. Nearly half of our Gen Z respondents prioritise saving for short-term goals, often linked to enjoying life. However, effective financial planning also requires a focus on long-term aspirations.”

“At HSBC One, where Gen Z is a key customer segment, we are committed to enhancing our services to meet these needs. Therefore, in our upcoming service revamp, we have introduced new, tailored lifestyle offers that cater to their desire for instant gratification. At the same time, we are strengthening our deposit offers and stock trading privileges to empower Gen Z to save and invest for a brighter future,” Hui added.

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