For many members of Gen Z, life isn’t what they expected.
A recent survey by Bank of America’s Better Money Habits platform found that 52% of Gen Zers “say they don’t earn enough to live the life they want and that the cost of living is the biggest barrier to financial success.” That said, the survey found that 54% of Gen Zers rely on friends or family to help pay for housing. More broadly, “46% of Gen Zers (ages 18-27) rely on their parents or family for financial assistance,” the survey said.
Difficulty in preserving
Money issues are impacting Gen Z’s journey to achieving their life goals. Research shows that Gen Z is “off track” with some of the goals they’re striving to achieve in the next five years: buying a home, saving for retirement, and starting to invest.
In fact, the survey revealed that 30% of Gen Z feel they don’t earn enough to save, only 15% put a “set percentage of their paycheck into a savings account each month,” and only 20% contribute to a 401(k) plan or retirement account.
When the unexpected happens, like losing a job, many Gen Zers are unprepared: Surveys show that 57% of Gen Zers don’t have enough emergency savings to cover three months of living expenses.
Cost containment
However, the survey revealed that 67% of Gen Zers are adjusting their lifestyles and taking steps to “offset rising expenses,” including 43% eating out less, 27% turning down invitations to go out with friends, and 24% buying essentials from cheaper grocery stores.
Additionally, 38% of Gen Zers said they wouldn’t be embarrassed to tell a friend they’ll decline an invitation because they don’t have the money to go out.
The good news? Friends are pretty supportive, with 63% of Gen Zers saying they don’t feel pressured by their friends to overspend.
Whether you’re Gen Z or not, simply saying “no” can help protect your hard-earned money. But saying “no” doesn’t have to come at the expense of your relationships with your loved ones. Taking certain steps, like offering more affordable alternatives, can help protect both your relationships and your money.
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