How Gen Z is feeling the effects of inflation

INDIANAPOLIS – A new survey by Bank of America sheds new light on how members of Gen Z (ages 18-27) are feeling the effects of inflation and high prices.

In the survey, BoA asked young people various questions about their financial health and budgeting practices.

Here are the findings:

• 54% said they are receiving financial assistance, mostly from parents or other family members.
• 67% said they are not on track to start saving for retirement in the next five years.
• 52% said they do not make enough money to live the life they want.
• 50% are delaying financial milestones like buying a house.
• Of the fewer than half of Gen Z members who pay for their own housing, about two-thirds say more than 30% of their monthly income goes to that housing. And roughly two-thirds say they are making lifestyle changes like not eating out and skipping fun events with friends.

In addition, research found that “loud budgeting” – being vocal with friends about what social outings they can and cannot afford – has helped Gen Z live within their means.  More than one-third (38%) feel comfortable declining social opportunities and admit it is because they can’t afford the expense.

Similarly, 63% do not feel pressured by friends to overspend, indicating that Gen Z may be drawing firmer financial boundaries compared to other generations at the same age.

You can read full details of the report here.

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