Almost Half of Gen Z Receive Financial Help From Parents — How It’s Impacting Money Milestones
Written by
Tina Nazerian
Edited by
Susan Kim
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For many Gen Zers, life isn’t living up to their expectations.
According to a recent survey from Bank of America’s Better Money Habits platform, 52% of Gen Zers “said they don’t make enough money to live the life they want and cite the cost of living as a top barrier to financial success.” Namely, the survey found that 54% of Gen Zers depend on their friends and family to help pay for their accommodations. More broadly, “46% of Gen Zers (ages 18-27) rely on financial assistance from parents and family,” per the study.
Difficulty Saving
Finances are impacting Gen Zers’ path to reaching life goals. Some goals the survey found Gen Zers are “not on track” to accomplish in the next five years, even though they’re attempting to do so? Purchasing a home, putting away money for retirement and beginning to invest.
In fact, the survey revealed that 30% of Gen Zers don’t feel like they earn enough to save up, with merely 15% putting aside “a set percentage of their paycheck into a savings account each month” — and only 20% making contributions to a 401(k) plan or retirement account.
In the event of unexpected life circumstances, such as losing a job, many Gen Zers aren’t prepared. Per the survey, 57% lack the necessary amount of money in their emergency savings to hold them over for three months of living expenses.
Curbing Expenses
However, the survey uncovered that 67% of Gen Zers are adjusting their lifestyles, taking steps to “offset growing expenses.” Specifically, 43% are eating out less, 27% are turning down invitations to go out with friends and 24% are getting their necessities from cheaper grocery stores.
Moreover, 38% of Gen Zers indicated that they aren’t shy about telling their friends that they’re turning down an invitation because they can’t afford an outing.
The good news? The survey found that their friends are pretty understanding, with 63% of Gen Zers stating that they “do not feel pressured by friends to overspend.”
Whether you’re a Gen Zer or not, one word — “no” — can help you keep your hard-earned money. But saying “no” doesn’t have to damage your relationships with your loved ones. By taking certain steps, such as offering more affordable alternatives, you can safeguard your relationships and finances alike.
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