Nearly half of Gen Z relies on family financial help, as they face higher daily expenses and lower wages adjusted for inflation compared to their parents, per Bank of America.
The rising cost of living is impacting Generation Z, with nearly half of young adults relying on financial help from their families, according to a new survey. The "Parent Trap" survey, released by Bank of America, found that 46% of Gen Z adults aged 18 to 27 receive financial assistance from parents or other family members. The survey, conducted by research firm Ipsos, polled over 1,090 Gen Z adults between April 17 and May 3.
These findings echo a previous online survey from September, which revealed that 65% of Gen Z and 74% of millennials believe they are starting behind financially. That survey, conducted by The Harris Poll, was done exclusively for USA TODAY.
Despite these challenges, around 58% of Gen Z respondents said they were optimistic about their financial future heading into 2024, according to a December poll by Bankrate. However, another Bankrate survey from September showed that Gen Z is less likely to save money or set aside funds for retirement compared to other generations.
More than half of Gen Z respondents (54%) in the Bank of America survey reported that they don't pay for their own housing. To manage living expenses, many are cutting back on dining out (43%), skipping social events (27%), and shopping at cheaper grocery stores (24%).
The survey also found that more Gen Z women (61%) than men (44%) see the high cost of living as a barrier to financial success. "Though facing obstacles due to living costs, younger Americans are showing discipline and foresight in their saving and spending habits," said Holly O'Neill, president of retail banking at Bank of America, in a statement. "It's essential to continue empowering Gen Z to work toward financial health and achieve their long-term goals."
