The reason why American Gen Z consumers increasingly rely on parents for financial support
Adult members of Gen Z in the U.S. are facing growing financial challenges due to inflation and rising living costs.
According to a report by Bank of America, published on Wednesday and cited by Reuters, 46% of Gen Z adults rely on financial assistance from their parents and families.
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Half of the 1,091 individuals aged 18 to 27 surveyed by the bank were not on track to buy a home within the next five years.
Respondents were surveyed in April and May, and the survey was weighted to meet national benchmark criteria for population, including gender and race.
The survey showed that 46% of young adults were not ready to save for retirement, and 40% were not prepared to start investing within the next five years.
"When I talk to young people, especially Gen Z, I tell them to set a budget and stick to it," said Holly O'Neill, president of retail banking at Bank of America.
Among those surveyed, 67% are making lifestyle changes to compensate for rising living expenses.
These changes include calculating expenses, reducing dining out, staying home instead of attending events, and shopping at cheaper stores.
Emergency savings have been another pain point, with 57% of Gen Z respondents lacking sufficient funds to cover three months of expenses.
