Nearly half of Gen Z adults say they get financial help from parents and family

Nearly half (46%) of Gen Zers age 18 to 27 rely on financial assistance from their parents or family, according to survey results recently released by Bank of America’s Money Habits financial education team.

More than half (54%) said they don’t pay for their own housing. Close to two thirds of those who do report that they spend more than 30% of their monthly paycheck on housing. According to PNC Bank , experts recommend that people not spend more than 30% of their income on housing.

This study of 1,097 Gen Z adults conducted in April and May with Ipsos also found that 52% of respondents said they don’t make enough money to live the life they want. They said that the mere cost of living was a top barrier to their financial success.

“Many said they are delaying milestones and are not on track to buy a home (50%), save for retirement (46%), or start investing (40%) within the next five years – even though they are working toward those goals,” said a press release from Bank of America. That’s even as 67% are implementing lifestyle changes such as cutting back on dining out (43%), passing on events with friends (27%), and shopping at more affordable grocery stores (24%).

Some of these habits are called “loud budgeting,” said Bank of America. This refers to people being vocal about budgets and what they cannot afford. Most (63%) don’t feel pressured by their peers to overspend.

Still, this generation is struggling to build savings and contribute to retirement. In fact, 57% of respondents said they do not have enough emergency savings to cover three months of expenses, only 15% a set percentage of their paycheck into a savings account each month and just one in five contribute to a 401(k) plan or retirement account.

According to a June report from The Washington Post , both Gen Z and millennials (now age 28 to 43) came of age during economic upheaval and have suffered for it financially. However, the outlet said “Gen Z is spending more on necessities than millennials did at the same age,” based on its analysis of Bureau of Labor Statistics data.

In May, Fortune reported that Gen Zers “are earning less and have more debt than millennials did at their age,” as inflation persists in the post COVID-19 pandemic era.

Figures from the Education Data Imitative show that Gen Z holds around 6% of the $1.63 trillion Americans hold in student loan debt, while millennials hold 30.26%. Gen X holds more than half of the debt at 56.73% and baby boomers hold the second least at just over 7%.

In addition to relying on family financially , Audacy recently reported on the trend of Gen Z bringing their parents to job interviews with them. These parents don’t just sit in the waiting room, they come right into the interviews. Earlier this year, Audacy also reported about the Gen Z-driven NEET trend – this stands for “not in employment, education, or training.”

While many Gen Zers reported that they are not financially independent, 70% said they feel equipped to manage their day-to-day expenses and stick to a budget, while 66% said they feel equipped to build and manage credit. A vast (82%) of the generation has financial goals, and over half (51%) prioritize them.

However, “Gen Z continues to use their leftover income on experiential spending like dining out (36%), shopping (30%) and entertainment (24%) – higher than other generations,” according to the Bank of America survey.