Nearly half of Gen Z receives financial help from their parents

Why Gen Z and Millennials Are Spending More on Groceries, According to McKinsey Research

To help pay for the high cost of living, many young adults turn to a safety net: their parents.

Nearly half (46%) of Gen Zers aged 18 to 27 rely on financial help from their families, according to a new report from bank of america.

Even more people (52%) said they don’t earn enough money to live the life they want, with daily expenses seen as one of the biggest obstacles to their financial success.

“The high cost of living is definitely impacting Gen Z,” said Holly O’Neill, president of retail banking at Bank of America.

The financial institution surveyed more than 1,000 Generation Z adults in April and May.

Why Times Are So Tough for Gen Z

Many consumers feel tense because higher prices — especially for food, gas and housing. But those just starting out face additional financial challenges.

Not only are their wages lower than what their parents earned when they were in their 20s and 30s, adjusted for inflation, but they also have higher student loan debt.

Even compared to millennials, Gen Z spends significantly more on necessities than young adults did a decade ago. reports show.

They also have the debt to prove it. About 15% of Gen Zers have maxed out their credit cards and are at risk of falling behind on payments, more than any other generation, the New York Fed reported in May.

“What the default numbers show is that there is increased stress among certain segments of the population,” the New York Fed researchers said at the time.

'The high house prices are certainly a barrier'

Fewer Americans feel financially comfortable overall

When it comes to their salaries, Americans said they should do the following: earn an average of $186,000 to live comfortably, Bankrate found. But to feel rich, they would need to earn a little more than half a million a year, or $520,000.

According to Bankrate, the recent rise in inflation and specific challenges related to housing costs and higher education affordability also presented significant barriers to achieving financial security.

“Many Americans are caught between the ongoing shock of rising home prices, a lack of income growth and a sense that their dreams and hopes are out of sync with their financial capabilities,” said Mark Hamrick, senior economic analyst at Bankrate.

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