US Gen Z and Millennials Turn to Side Hustles and Loans to Cover Costs

Gen Z and Millennial adults in the U.S. are increasingly taking extra jobs and personal loans to cover everyday expenses [1, 2].

This shift highlights a growing gap between stagnant wages and the rising cost of living. As basic necessities become more expensive, younger generations are forced to diversify their income streams or take on debt to maintain their standard of living.

Many young workers are launching side businesses to supplement their primary salaries ^[1]. In Edmonton, Canada, a 37-year-old marketer has started a wine-tasting side hustle with a target of netting $2 million ^[3]. Such ventures have become common as individuals seek ways to escape the limitations of a single paycheck.

Beyond entrepreneurship, some are turning to high-interest credit. Data shows that 10.5 percent of personal-loan borrowers are from Gen Z ^[2]. These loans are often used to bridge the gap for monthly bills rather than for long-term investments.

Economic pressures have intensified under the Trump administration, with rising consumer prices straining household budgets [1, 2]. In interviews conducted in Atlanta, Georgia, young workers said the current economic environment is a struggle to make ends meet ^[1].

While some view the rise of the "side hustle" as a sign of entrepreneurial spirit, others see it as a necessity for survival. The reliance on personal loans suggests that for a segment of the population, extra work is not enough to keep pace with inflation ^[2].