7 Poor Habits Gen Z Says Causes Them To Live Paycheck to Paycheck
Written by
Jennifer Taylor
Edited by
Rebekah Evans
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Life can be expensive, causing many people to live paycheck to paycheck. While young, many members of Gen Z are already living this way.
As of November 2024, approximately two-thirds (67%) of consumers are living paycheck to paycheck, according to a survey conducted by Pymnts — this is the highest rate since 2020.
Several different reasons contributed to respondents’ current financial situation. Keep reading to find out which seven poor habits Gen Zers said are currently causing them to live paycheck to paycheck.
Medical Bills
As the least-common reason Gen Z is living paycheck to paycheck, 12.4% of respondents cited medical bills as the cause for their financial woes.
Notably, Gen Zers struggles with their mental health more than any other generation, according to a Cigna study. Additionally, only one-third of Gen Z employees participate in their employer-sponsored health insurance plan.
Unstable Employment Situation
Living paycheck to paycheck can be inevitable without a steady job, which is the reason 13.3% of Gen Z claim to be in this situation. As of November 2024, the unemployment rate for those between 20 and 24 years old was 7.8%, compared with just 3.7% for those in the 25-to-54 age group, according to the U.S. Bureau of Labor Statistics .
Recently Using Significant Savings
Nearly one-fifth (19.9%) of Gen Z revealed they’re living to paycheck to paycheck because they spent a notable amount of their savings recently. Though, the survey didn’t dive into exactly what they spent their savings money on.
Paying Costs of Other Family
Some members of Gen Z aren’t just supporting themselves. Providing financial assistance to family members is the reason 21.3% of this age group are currently in this situation.
Large Amount of Debt
The good news is fewer Gen Z respondents cited a large amount of debt as the reason they’re living paycheck to paycheck than any other generation. The bad news is the amount of this young generation already saddled by debt is notably high at 24.3%.
Members of Gen Z have an average credit card debt of $3,262 and an average student loan balance of $21,572, according to Experian.
Splurging
Gen Z likes to live large — more so than any other age group in this survey. This generation’s second-leading reason for living paycheck to paycheck — 33.7% claim splurging is what brought their finances to its current state.
Insufficient Funds
Simply not having enough money to go around is the number one reason Gen Z is living paycheck to paycheck. In total, 39.3% of respondents cited this as the cause of their financial woes.
Results of a GOBankingRates study revealed Gen Z’s average earnings vary greatly by state. For example, their median hour earnings are $21.77 in Arizona, $19.62 in Florida and $25.23 in New York.
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