The Economics of Love: How Financial Concerns Shape Gen Z Dating

In today’s rapidly evolving landscape, dating isn’t just about chemistry and connection; it’s also deeply intertwined with economics. Quincy Yang, co-CEO of the dating app Coffee Meets Bagel, notes that young people, particularly Gen Z, are increasingly evaluating potential partners through a financial lens. For this generation, whose experiences are marked by escalating costs of living and economic instability, monetary considerations heavily influence romantic choices.

The High Cost of Living

Quincy Yang highlights the daunting reality of housing affordability: “It’s so hard to afford to buy a house, or any property.” Many Gen Zers find themselves living at home far longer than previous generations. In particular, the notion of achieving the “American dream” through homeownership seems almost obsolete for younger individuals. Yang suggests that older generations found it easier to purchase property and start families, while today’s young adults require dual incomes simply to afford a median-priced home or condo. This need for financial collaboration translates into how they choose their partners.

Financial Stability as a Priority

The financial landscape has drastically shifted, making financial stability a significant factor in the dating pool. Yang articulates that, amid the ongoing affordability crisis, there’s an incentive to pursue partners who demonstrate ambition and financial stability. This reflects a broader shift where young daters are prioritizing long-term financial security over casual relationships.

Co-CEO Shn Juay further emphasizes this transformation in dating culture. Unlike older generations, whose dating norms often embraced casual encounters, Gen Z appears more averse to hookups. Juay observes, “When you talk about dating apps, the first thing that comes to mind will be hookups. But the Gen Zs are really more conscious.” For them, the parameters surrounding an ideal partner have become markedly practical and goal-oriented.

Early Career Hustle

In many ways, the current economic climate forces young adults to adopt a more serious approach to their personal relationships. As Juay notes, “You can always go for a higher degree, or you get promoted along the way, but not at age 28 years old, where everybody’s probably still really early in their career.” The societal pressures surrounding career development and financial independence shape how Gen Z approaches dating and relationships.

The Need for Dual Incomes

Living expenses in the United States have surged to unprecedented levels. A June 2024 report by the US Treasury Department highlights that housing costs have consistently outpaced wages, creating a scenario where many budding professionals find themselves unable to afford living alone. The situation is further exacerbated by rising grocery prices and the economic fallout from tariffs imposed on foreign goods, which have forced retailers to raise prices significantly.

The implications of this economic strain manifest in more individuals choosing to live with partners rather than alone. According to a Pew Research Center study, the percentage of US adults living without a partner decreased from 44% in 2019 to 42% in 2023, reflecting a growing trend toward cohabitation as a strategic response to financial challenges.

Prioritizing Financial Interviews

With money concerns at the forefront, a survey conducted by Coffee Meets Bagel reveals that financial stability is a top priority among young daters. In a sample of 1,050 working professionals aged 21 to 35, over half identified financial stability as a must-have trait in a partner. Remarkably, nearly 60% of respondents deemed “ambition/drive” as essential—highlighting a shift where personal finance plays a more critical role in relationship dynamics than shared interests.

The emphasis on practicalities in relationships underscores how financial realities shape aspirations and romantic pursuits. As Coffee Meets Bagel put it, “While many are looking for someone to spend their life with, practical matters still reign supreme.” In a world where love meets economic challenges, it’s clear that dating expectations and values are evolving to accommodate financial realities.

Through these shifting priorities, it’s evident that the pursuit of love is now interlaced with financial considerations, casting a fresh light on the contemporary dating scene.