Almost half of adult Gen Zers are still getting financial help from their parents, according to a new Bank of America study of the generation’s financial health.
The survey published Wednesday revealed 46% of Gen Zers between the ages of 18 and 27 reported getting some cash from their families. Fifty-two percent said they don’t make enough to live where they desire.
Exactly half of adult Gen Zers don’t feel on track to buy a home, while 46% said they are not saving enough for retirement.
Most Gen Zers predictably cited the high cost of living as the main barrier to financial security. Two-thirds reported cutting back expenses to save money, including 43% who are dining out less, and 24% who are turning to more affordable grocery stores.
Fifty-four percent of adult Gen Zers surveyed also said they don’t pay for their own housing, either living at home or relying on their family to pay their rent—which isn’t as outlandish as it sounds considering how many people in that group are still in school.
More concerning: Bank of America also reported that 57% of those who took the survey said they don’t have enough emergency savings to cover three months of expenses.
“Though faced with obstacles driven by the cost of living, younger Americans are showing discipline and foresight in their saving and spending patterns,” Holly O’Neill, the President of Retail Banking at Bank of America, said in response to the survey results.
“It is critical that we continue to empower Gen Z to work toward achieving financial health and meeting their long-term goals.”
Gen Z isn’t being unreasonable when they report not feeling financially secure. A recent study by Trans Union found they are making less than millennials were a decade ago.
The study found that as of the fourth quarter of 2023, Gen Zers ages 22 to 24 made an average of $45,493. That’s far less than the $51,825 millennials were making at the same ages 10 years ago when adjusted for inflation.