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Stuck in the ‘parent trap’, need financial help, research shows

Stuck in the ‘parent trap’, need financial help, research shows


Inflation and the cost of living are putting Gen Z adults, ages 18 to 27, in a budget crunch, a new survey finds. Nearly half say they get help from parents and family to make ends meet.

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Gen Z is struggling with high living costs. Nearly half of Gen Z adults say they receive financial help from their parents and family, a new study finds.

Nearly half (46%) of Gen Z adults ages 18 to 27 said they rely on financial help from their parents or other family members, according to the “Parent Trap” survey, recently released by Bank of America. Research firm Ipsos conducted the poll of more than 1,090 Gen Z adults from April 17 to May 3.

The findings mirror those of a September online survey that found two-thirds (65%) of Gen Zers and 74% of millennials say they feel they are falling further behind financially. The online survey was conducted exclusively for USA TODAY by The Harris Poll.

Still, about six in 10 Gen Zers (58%) said they were optimistic about their financial future heading into 2024, according to a Bankrate poll published in December.

Regardless, Gen Z is less likely to save or set aside money for retirement than other generations, another Bankrate survey found in September.

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Generation Z cuts back on financial problems

More than half of Gen Z respondents in the Bank of America survey (54%) said they don’t pay for their own housing. To offset the cost of living, many said they’re eating out less (43%), skipping events with friends (27%) and shopping at lower-cost grocery stores (24%).

More Gen Z women (61%) than men (44%) surveyed said the high cost of living is a barrier to financial success. “Despite facing obstacles caused by the cost of living, younger Americans are showing discipline and foresight in their saving and spending patterns,” Holly O’Neill, president of retail banking at Bank of America, said in a press release. “It’s critical that we continue to empower Gen Z to work toward achieving financial health and achieving their long-term goals.”

Generation Z and Financial Dependency

The cost of living is a “top barrier to financial success” for Gen Z, with more than half (52%) saying they don’t make enough money to live the life they want, according to Bank of America research. The money crunch led many respondents to say that while they’re working toward these goals, they:

  • They do not have enough emergency savings to cover three months of expenses (57%)
  • They are not on their way to buying a house (50%)
  • They cannot save for their retirement (46%)
  • They can’t start investing (40%)

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How is Generation Z ‘loud budgeting’?

To stay within their means, many Gen Zers are using “loud budgeting,” telling their friends which social outings they can and can’t afford, according to Bank of America.

  • 63% of survey respondents said they don’t feel pressured by friends to overspend
  • More than a third (38%) are happy to skip social occasions and admit they cannot afford the costs.
  • They still use their leftover income for dining out (36%), shopping (30%) and entertainment (24%) — higher than other generations, Bank of America says.
  • Gen Z women surveyed are more likely than men to cut back on unnecessary expenses, including dining out (50% of women; 37% of men) and skipping events with friends (31% of women; 24% of men).

“With the cost of living remaining high, Gen Z feels equipped to meet basic needs and has taken steps to cut unnecessary expenses and avoid pressure to overspend,” Bank of America said in the report.

Follow Mike Snider on X and Threads: @mikesnider & mikegsnider.

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