Key Takeaways
- Nearly half of Generation Z is receiving financial help from their family, a new Bank of America survey found.
- A third of respondents said they were receiving at least $1,000 in monthly aid.
- Gen Z reported turning down social events and using a budget to reduce expenses.
Gen Z is asking mom and dad for financial help.
In a recent Bank of America Survey of more than 1,000 adult members of Generation Z—the generation born between 1997 and 2012—46% of respondents reported getting financial assistance from parents or other family that they used to pay for expenses including groceries, rent and phone plans.
A third of those who said they were getting help reported receiving $1,000 or more in monthly aid, while a little over half (55%) said they received up to $500 per month.
Housing Affordability Weighs On Gen Z
Half of the survey respondents said they wanted to buy a home over the next five years, while 31% said they wanted to live alone. However, this may be difficult given recent trends in the rental and housing markets.
Inflation has cooled in recent months, but shelter inflation has remained elevated, clocking in at 5.2% year-over-year in June. Meanwhile, the Federal Reserve’s rate hikes have contributed to some of the highest mortgage rates in the past two decades. More than a quarter of survey respondents said that housing costs were their top barrier to financial success.
Fifty-four percent of respondents said they don’t pay for housing.
Younger Americans Working Towards Financial Goals
“Though faced with obstacles driven by the cost of living, younger Americans are showing discipline and foresight in their saving and spending patterns,” said Holly O’Neill, President of Retail Banking at Bank of America.
The majority of survey respondents are trying to reduce expenses by changing spending habits, taking steps including eating out less frequently, saying “no” to hanging out with friends, and adhering to a budget.
Only 19% of Gen-Z respondents said they were putting money in 401(k) plans, while less than 20% were invested in the stock market at all.